Whether you are doing a start-up or running a small business, investors are required to grow the business. Without proper financial aid, you cannot expand your business to the extent you want to. If you have an out-of-the-box idea and a vision to convert that idea into an asset, then lack of capital should not stop you from accomplishing your dreams. That is why you should look out for the investors to clear the hurdle. The process of seeking investment can be broken down into three simple steps:
- Finding the right investors
- Making your presence felt
- Making an impression in order to convince the investors
To find the right investor, one must know the requirements of one’s business. If you only need money and no expertise, then you can go for the investors who are too money-oriented. But this way you run the risk of inviting a great deal of interference. However, if you are new to this industry, then you need an investor who can also support your business through his network, has sound knowledge of finance and has some experience in your field.
After finding the right investors, the bigger challenge is to get noticed by them. To come into the notice of the potential investors, put online platforms to your use. Before approaching the investors, you have to make a presence on the internet. Your social media game has to be strong; your blog or website must have a good ranking on Google and so on. Besides, attend all the events and seminars that you are invited to so that you get to meet all the big investors in your industry. Amid the talk, you can slip into describing your own business or personal brand and impress them. But do not start talking about your business out of the blue if you do not want to sound desperate.
The next question is how to convince them. Of course, why would they choose you out of a multitude of businesses? This is where you have to work the hardest. Here are some tips that can help you get through this:
- Holding events to interact with the investors is the most efficient way to get the ball rolling. How exactly do you show what makes your business distinct from others? Through presentations! Presentations, or in technical terms, the investor pitch deck presentations decide if the investors are dealing with you or not. In an investor pitch deck, you present your business ideas in such a way that it aligns with the interests of the investors.
(The catch 22 here is: If you had money to hold events, why would you seek investors in the first place. Do not be alarmed; this is what sponsors are here for. Sponsors are also investors but of a different kind. To persuade them, you have to work on an event sponsorship deck, which again is a presentation. Event sponsorship deck is like a proposal you put forward in front of the sponsors so that they agree to finance the event.)
- Going to the investors for the advice at first can get you familiar with them and give you the opportunity to inculcate their advice into your business ventures so they get more interested in investing in your business.
- Build a good market with regular and loyal customers. When investors invest in a business, they do that on the basis of reviews from the customers, practical results, statistics and metrics.
- Create a personal brand that exhibits your skillfulness.
- Last but not the least; increase your network of people from your industry.