HOW TO ATTRACT INVESTORS TO YOUR BUSINESS
HOW TO ATTRACT INVESTORS TO YOUR BUSINESS
Getting investors to fund your business could prove to be a difficult task especially for startups. It is easier for ventures that have stood the taste of time to get investors when compared to emerging businesses but it does not change the fact that if you plan your trade well, whether new or old, you would get ready investors to fund your enterprise. Funding presents a huge challenge to a lot of entrepreneurs that have the potential of making great deal of wealth if their business ideas are made a reality. It is needful to understand ways you can attract investors to your business.
Evaluate your business
Prior approaching an investor to consider your business, it is best you do a thorough evaluation of your trade and be sure it is at a level where an investor’s capital can push it forward. A lot of entrepreneurs make the mistake of meeting an investor when their business is at a low, nobody wants to invest in a trade that is very much uncertain. Also, if your enterprise is at the initial stage, make sure you do not approach investors that have made it to the global landscape, they might not give you a listening ear talk more of presenting your idea. For startups, it is best you go for local investors that would easily reach out to your idea. Micro investors might be willing to risk capital for your startup with the hope of getting higher returns to boost their credit.
Whether the investor you want to share your idea with is an angel investor or venture capitalist, it is best advised that you carry out a thorough research on the potential investor. Ensure you gather as much information as you can about the investor, this is needful because you need to understand the individual you will be dealing with. You could ask entrepreneurs that have been involved with the investor in the past so you can be sure you want to do business with him/her rather than risking your trade. Knowing the business interest of your investor and whether he/she has invested in your kind of project in the past is a plus to your quest of trading with the investor. Information is without doubts a powerful tool, having good knowledge of your investor puts you in a great position when discussing terms with him/her because you already understand where they are driving at.
Locating an investor willing to partner with you
Most entrepreneurs are unlucky in their choice of investors to partner with, they end up doing business with investors that can only provide fund for their trade. Locating an investor who is not only willing to fund your business but also suggest strategies and lay out plans for your trade and partner with you in business is what you need for your trade to grow. It is not always about the money; you could have the money but failure to be properly guided could lead to misappropriation of funds which is not good for business. It is equally essential to note that not all individuals without guidance will mismanage funds but guidance is an advantage to you and your venture, we all keep learning.
It is imperative to work with an investor that would strengthen your business through advice and link you with connections that your enterprise need. Also, an investor that would broaden and widen your scope in your venture is guarantee for success in business dealings. These kind of investors serve you better than ones who only have money to offer.
Social Media Marketing
In a world that is becoming increasingly digital, marketing your venture on social media platforms could serve as the strategy you need to gain investors for your venture. Investors might even locate you and be willing to invest in your business without you approaching them. Entrepreneurs that understand the relevance of the social media tool for marketing have a lot of investors competing to trade with them. A major advantage this gives is that, it gives an entrepreneur an opportunity to select from a pool of investors who are equally willing to accept your terms and conditions because they understand the competition your business is bringing.
Investors hate entrepreneurs that lack clarity on their business pursuit. When you approach an investor, make sure you have a clear and well mapped out needs and time projection required for the venture to flourish. With this, you can be considered for business because it proves to the investor that you are well prepared for what you are signing up for and it gives you a sense of coordination which most investors want to see.
Also, you have to present information on how well your business has progressed, and how convinced you are that investing huge capital will not be a great mistake. People invest to gain, not to loose. Your business plan should be realistic, do not make uncertain projections, put the investor on the know of how things will turn out, ensure the investor knows the maximum risk attached. This will help to avoid problems in the future. Every investor wants to know when their investment will start yielding results, make sure you do not deny them that information. There is no point being secretive or cunning because of selfish gains, present your terms and conditions, then negotiate, what will be will be.
Progress of your business
The successful operation of your busi
ness might be the source of investors for your trade. News broke out recently that French media giants Canal + acquired ROK TV, a studio production under IROKO TV for an unspecified fee. Canal + approached the founder Mary Njoku due to the fact that the success of the venture was visible in the African movie industry. Such progress attracts not one or two but numerous investors for your enterprise, you do not have to go begging investors to consider your trade, your success should draw them close, you can determine who to trade with.
Patriarch Business Advisory (PBA) aka Patriarch Advisory (PA) is a management consulting firm committed to bridging the knowledge, finance and mentoring gap of individuals and small and medium sized enterprises (SMEs) in Africa. We provide excellent bespoke services that are extremely useful to any individual and/or business. Among others, our services categories include opportunity maximization, business financing, marketing strategies, growth and expansion plan, and objective business diagnosis.
With several years of working with MSMEs in Nigeria, we have consistently provided unrivalled consulting/advisory services to small businesses across the country. Pls contact us today to discuss your specific concerns. The excellence we put to our work stands us out.
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