The big question is what do investors look for? How can one be able to present a good enough business pitch to attract their attention? What sort of start-ups would they be interested in? So many questions may come to mind in relation to the best ways to lure investors but the simple answer to the questions asked is based on having an idea or pitch that will leave no stone unturned in achieving the goal of landing the right investors and the right deal. Shown below are some tips to help you prepare yourself for the opportunities with investors that could land you the most suitable investors.
Establishing a successful business isn't about having the right kind of skill, for instance, some entrepreneurs do not have the specific skills that one might assume are needed to carry out certain required skills, such as accounting, technical stuff, etc. They just employ the people who have the right specific skills that enable the business to reach its full potential. So when it comes to picking investors, although it might be helpful to pick an investor who has the expertise that's relevant to your business, it isn't particularly necessary for the investor to be fully experienced in relation to the line of business they are being asked to invest in, they simply need to have the required financial resource that can boost your business.
“Being successful in doing anything is mainly based on your own personal attitude, so is attracting investors for your business. I'm not simply referring to the actual need to be positive in your mindset, there are so many other factors that are at play when you're dealing with the process of doing all the work towards securing the right investors. There are also many other channels of acquiring the right tips and knowledge to equip you accordingly, in tackling the task of getting the right backing for your business.”
If you have some external investors (those who may put money into your business but are not founders or members of the team/business) then it is important to consider what their expectations of the company are, as in what they actually expect the business to achieve.
What Do The Investors Want From An Entrepreneur?
All potential investors will want the following, in differing ways :
Financial Reward
They'll not be giving their money to charity, they'll be investing it into your business instead of placing it into bonds, stock markets, property or simply just savings accounts. They'll definitely want to see their investment earning them more money.
Pride
They will want to be very proud of their association with your business and not ashamed of it. This means that they'd be proud of the financial success of your business and also the actual work you put into it all or the business that you run and the reputation the business will have.
Satisfaction
Your investors are only human, therefore they'll also want to get a certain degree of satisfaction in being associated with your business/company. This particularly applies to the individual investors who may actually enjoy being within your industry, love the products that you manufacture, or simply being part of the rapid growth of the business.
The best way to know what your investors are interested in achieving through investing with you is to ask them specific questions, such as the following :
Why did you invest in the business?
At what point do you want to see financial return and what sort of return are you expecting it to be?
For how long do you expect to own your shares in the company?
When do they expect to earn a dividend, if any at all? (They may simply just want to build the value of the company, with a view to selling it for a massive profit).
In conclusion, there is more to just getting an investor, it is important for the investor and yourself to establish a solid partnership that will work well for both parties.
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