Want to impress your potential investors? These are the seven things you should do.
Looking for investors for your business is the entrepreneur's version of job interviews. You have to look the part and be able to say the right things when asked to earn capital from them. Investors come from all walks of life, and you have to be able to tailor your pitch to each of them to make your business more prominent to their interests. However, there are some things that remain constant and will work to impress investors and garner the funds you need to take your business to the next level. Here are seven ways that you can impress your potential investors:
Clearly Presenting Your Margins
Investors are not investing in your business simply because they believe in your vision (though they do have to believe in it to invest), they are investing in you to make a little bit of extra money as well. Having promising margins is going to be the best way to impress your investors, but having the numbers themselves is not everything. They have to be presented in a pleasing, professional manner as well.
Show Them Growth Potential
Investors like to see longevity and a stable marketplace full of consumers, so you should be able to show them the value of your business and how that value will only continue to grow. Explain how your business applies to a group of people and how much growth potential your brand has, both in terms of new markets and in revenue streams. Investors want to see that their money is going to keep working for them, so you should look to show them that your business can help them do that.
Have A Clear Business Model
Investors like things that they can work in as well, so having a clear and replicable business model is going to be one of the linchpins to getting an investor to sign on to your business. Ideally, your business model will be scalable and as detailed as possible, as investors are not looking for a static business, but one that will show lots of growth and has a good plan for how to achieve it.
Tell Them What Problem You're Aiming To Solve
A successful business has a clear vision and a problem that they aim to solve with their products or services. This problem should be something that affects a large group of people, as a niche problem will have fewer business opportunities or room for growth. But regardless of the size of your target market, it's imperative that you have a clearly defined problem and a product that promises to solve it.
Prove That You're Different From Your Competitors
Having proprietary ownership over some part of your business is going to be the best way to have a competitive edge--nobody can replicate it, because you own it. These come in the forms of patents, trademarks, and copyrights, but trademark and copyright laws are less favorable for small businesses, so they don't hold as much weight as a patent does. If you don't have any of these things, you can still establish an edge with an innovative outlook instead.
Show Them That Your Team Is The Best
Investors also look at the team behind a potential investment opportunity and want to know that the people that are running the show are passionate, talented, and the best at what they do. So, it's important that you not only hire talented employees, but that you also make sure to show investors that you've got the best team for the job at hand. After all, an idea can look great on paper, but if it doesn't have a great team backing it up, it can still fail pretty easily.
Show Them How You Connect With Your Customers
Having repeat customers is a good sign of a successful business. In addition to this, having personal connections with customers through all avenues is always a good sign to a potential investor. Make sure that you cultivate positive relationships with your customers and that you can prove to potential investors that you have loyal fans that will always be there for your brand.
Every investor is different and will certainly look for different things in each business that they're looking to invest in. As such, you should do your research, know who you're talking to, and figure out how to best capture their attention and persuade them to fund your company. However, despite the inherent differences between individual investors, there are a handful of traits that every investor wants to see in a business before offering to fund it. By following these seven steps and proving your company's value, growth potential, and individuality, you will be able to impress any investor and get the funding you need to take your business to the next level.
