Businesses with a vision for the future backed by solid performance should always keep in mind that funding is available from investors to grow. Financing and funding from an investor are distinctly different things, with the right investor giving a suitable business a definite edge. Investors come with diverse business networks and many certain strengths that will each be an asset to your growth, but they have conditions and pre stipulated rights negotiated by legal teams for both parties. Handing over percentile ownership of your company to an investor may trade-off ownership, but the profit scaling can be insane, putting you far ahead of any unfunded time-scale of growth. Before you rush off to look for an investor, here’s an overview of everything of the key considerations, and the eight main things investors look for before investing in any given business
Financial Performance Indicators
Investors want to make money – that’s the bottom line. Make sure that you’ve got excellent financial performance to back up any investment proposal. If you’re seeking funding without having a company up and running yet, then your business plan and financial organization strategy had better not only be sound and backed by factual statistics, evidence, costs, and realistic projections, but the business idea itself had better show market-leading innovation. With risk prevalent, the chance of investors putting their cash into your company is very low.
Complete, Factual, Realistic Business Plan
Business plans aren’t just a backing for your pitch. They’re a vital part of securing any form of funding from loans to investors. If your vision can’t be contemplated by those interested in turning a profit, then they’re going to see no sense in allowing you to grow their funds. Every last aspect of your business plan needs to be carefully selected, crafted, and adapted to the market at hand. Make sure that your business plan includes the following:
Innovation & Clear Conceptual Design
Concept design is something that’ll make or break you. If your idea isn’t unique, adding actual value to a market or introducing something that hasn’t been done before, then you’re going to struggle to find funding from an investor. If you’re going for novelty value or a seasonal premise, then you’d better make sure that your innovation stands out in every way. Competition is tough in every industry, and the one thing that guarantees success is originality well executed. Even if your product, service, or business model presents something completely new, if it’s not communicated correctly and presented in such a way that everyone sees the value, then no one is going to invest. No matter whether your business handles something brand new or you’re introducing innovation to an existing market, make sure that your competitive advantage is clear.
A Pitch That Presents Everything
The perfect business plan, excellent financials, and a secure realistic vision for future growth can all be trivialized if you fall flat on your pitch. Develop a narrative that tells the story of your inception as a business, your place in the market, demonstrating why you’re the best and project your growth realistically. Your pitch isn’t the place to start fussing over small financial details and things like organizational structure, but rather the best place to tell your story and draw investors in. Your first impression is vitally important. You need to convey readiness, enthusiasm, and showcase all the personal qualities that make your business a unique investment in one go. If you make it clear that the wheels of your financial, logical, and emotional mindset are all turning in the direction of growth, it’ll be hard for anyone to ignore your pitch. Just make sure that you stand out while being the perfect representative of the gains that they will see by investing.
Business Readiness That Goes Beyond Basic Foundations
Basic business readiness is often confused for having all the current information, and historical data of your company ready to present. What’s often neglected is the hard evidence and research needed to prove the viability of your company’s growth strategy and projections. Market research is vitally important to show a potential investor that you’re prepared to not only do business as you are but grab the investment and speed ahead to rapid, steady, projected growth. Don’t only come up with a plan for what you intend to do with the investment, but back your actions with research. Investing in marketing? How? Why? With which agency and demographic and approach? Have you got the competition analysis to back this decision? The same goes for growth. Opening new franchises or seeking out a warehouse or supply manufacturing location? Scout the location. Growing your supply chain? Get the whole catalog, ordering information, and the basic liaison at your new suppliers. Your business readiness is shown by your hard data for the future. It’ll make it clear that an investor’s money is indeed turning over into growth, and thus later profits.
Securing The Perfect Investment
Investors are readily available for businesses who have certain growth. The better you can convey your measured projected success, the higher the chance of procuring the perfect investor. Remember, every investor is trying to make as much money as possible so don’t forget to keep your own interests at heart. Never give away equity that you can’t afford to lose, while always carefully assessing the trade-off’s viability. MyOpportunity is there and ready to help you connect with businesses, investors, and other entrepreneurs across all industries. A well-grown business network of aligned associates in invaluable to securing the correct contact, insight, or investment that you want and need.