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So you have a brilliant business idea, but, you need funds to push forward with this business idea or to grow it (whichever the case may be). This is where an investor comes into the picture. Investors are an invaluable resource for entrepreneurs, and they utilize their capital or the capital of others with the goal of receiving a return. They provide financial support to business owners and/entrepreneurs. Nevertheless, the problem faced by start-ups to attract funding is usually how to ensure that their business looks viable enough to attract investors. In other to surmount this challenge, here are a few tips on how to do that:
When focusing on potential investors, it is very important you try to research these investors to know whether or not they are a good fit for your business. Some investors usually have a portfolio of investments that they are currently investing in. It is usually advisable that one looks into the projects they are funding and tries to find a common theme. This will help to understand the investor’s priorities to enable you to tailor your pitch to suit their interests. It is important you find the right angle to sell your business directly to them.
Although some investors are open to taking risks while investing, they, however, do not gamble on a hunch. The risks the investors take are usually based on verifiable records and data. It is, therefore, advisable that you support your pitch with enough data to convince the investor of your business potential. For businesses at an early stage who may find it difficult to obtain data, market research findings demonstrating strong interests and potential should be sufficient to convince an investor.
You should read: Regulatory compliance for startups in Nigeria
It is a given that an investor will research your business before committing to investing in it. This is why it is important to have a positive online presence. This involves having a community of supporters of your product to create good prospects for your brand. Also, avoid negative reviews of your products online, which can put off investors. Your websites and social media pages should be properly updated to create a good impression.
While we understand you may want to provide all the information about your business to the investor when pitching, it is best only to limit it to relevant information. This is to avoid important information getting lost amid all the information you are providing. Remember you are there to convince the investor to fund your business which means that you only need to tell them what they want to hear to convince them that your business is a good investment.
Once you adopt each step, you will be adequately equipped to approach potential investors. We are also able to provide you with the necessary guidance you may need in preparing your business for this phase.
Written by Anyanwu Chiamaka for The Trusted Advisors
Email us: info@cms.trustedadvisorslaw.com
Telephone Number: +234 810 159 9159