It can be really difficult for a firm to attract investors. You might have to work hard on the business plan making it look attractive and worth it. Here are a few tips that will help you to attract investors:
Come Up With Something Unique
Investors will be putting their money at stake for a business, this is why you need to come up with something different which has a lot of potential. If a potential investor tells you that your project is not good enough then you need to take their suggestion and work on your business plan even harder. However, it is important to know that sometimes others might not recognize the potential your business might actually have. For example when Mark Zuckerberg initially came up with Facebook nobody would have thought it to be successful as it is today. So don’t lose hope just because a couple of investors didn’t like your business idea!
Present It Well
Presentation matters when it comes to dealing with investors. There have been a couple of businesses which weren’t a revolutionary idea but they did get funding for the way they presented it. This is why you should ask one of the best members in your team to present it, preferably choose someone who has done public speaking such as toastmasters. Also it is likely that your presentation would be in large files, you might even have to send large files to them. So make sure you choose a company that promises quick, convenient and secure high volume file sharing.
Give Them High Returns
Most of the time when firms make a profit they give a very less share to the investors. So in order to attract them you should offer them higher returns. This will make them interested in the project and if it turns out successful they will be willing to invest even further in the future. You could even choose an investor who can add something more than money like share his/her skills and expertise in the business. For example, when sole traders usually look for funds they make their investors a partner in the business which leads to a partnership business. This is a great way not just to invest money but also to share responsibilities and losses. For example, one person could look into the production process whereas the other could look into the marketing aspect of it. Moreover, the other person might have more knowledge about business which will reduce the risk of failure.
Have a Backup
Life is a rollercoaster ride and sometimes things don’t go according to the way we plan. So even in this case no matter how much you try to attract investors sometimes they really wouldn’t want to invest. This is because most of the new businesses fail and investors risk losing their money. So if your friends, family and companies have not helped you, you could get cash through a bank loan. However, keep in mind that interest rates might be too high. You could even save up some cash by doing a job for a while and then start your business. This might take some time, but at least you wouldn’t have to pay interest!
