Do you want to expand the scope of your business? Would you like to reach a wider target market? Do you want to have the right investors in your business? Then you’ve come to the right place. This article will take you through the steps you need to take to get the right investors for your business and provide you with the answers you need for any possible question you may have along the way.
But first, who exactly is an investor?
An investor is someone who puts money into a business with the expectation of a financial return. Investors usually have a partnership stake or ownership in the business and when you have the right investors in your business, your business will grow exponentially.
There are certain things you need to do to attract the right investors to your business. Investors don’t just throw money around; they put their money where they are confident of sustained business growth and development.
So here are some steps you can take to get right investors to your business
Carry out investors mapping
First, you need to know the kind of investors that work in your industry. For example, there are some investors who fund businesses in the manufacturing industry, some in the agro-allied and while some fund business across various industries. You might need to do some research online to know the best investor for your business and while mapping potential investors, you need to also review their goals to see if it aligns with that of your business.
Showcase your business results
This is very important! As a business owner, you should have a record of what you have done in the past or what you are currently doing in the business, even if it’s on a small scale. You should also have a record of other business stats such as the strength of your customer base, how you manage them, your profitability strength and so on. No investor will just put money into your business without seeing proof that the business is being run and managed in a profitable and sustainable manner.
Know what potential investors have to offer
When you are aware of the type of support investors can provide, it will guide you in knowing what to request for. It would be out place, for example, to request for funds when the potential investor only provides support in the form of infrastructure. When you channel your request towards what the potential investor can provide, it shows you know what you are doing and it boosts your credibility before your potential investor.
Prepare and deliver an articulate pitch
When looking for potential investors, you should plan, prepare and deliver an articulate pitch to attract the interest of an investor. Usually, a minute or less is all it takes to land a breakthrough for your business. Your pitch should state what your business does, what impact it makes or what problem it solves, and also the kind of support you need.
Whilst the above description is focused on you and your business, another important aspect that should be included in your pitch is how and when you will get the investors a return on their investment. You shouldn’t forget this; investors need to know what’s in it for them. You have just few seconds to secure that deal. Therefore, practice it perfectly.
Beyond funds, seek professional advice
It is not unusual to be tempted to only ask for finance from investors. However, you might need to engage them for professional advice as well. Investors will be able to guide you through areas you might encounter challenges. You would be surprised that an investor might be willing to mentor you as well as invest in your business. So, beyond seeking financial support, ensure you leverage and tap from other resources and networks your investor has built overtime.
Have a strong and committed team
Ensure that you have a strong, dedicated and forward thinking team before you begin the search for potential investors. If you are able to secure the interest of an investor, you won’t want to perform below expectation and not meeting up with agreed terms and condition won’t be good for your business because attitude is everything.
While there are many ways to secure an investor for your business, the steps above are salient ways in landing the right kind of investor you need for your business. Follow them and you’ll be well on your way to getting the investment you need to make your business a success!