Like life itself, running your own business is a journey and not a destination. Many fledgling entrepreneurs can get so caught up with the development of their business plan, the minutiae of their market research, the intricacy of their cash flow projections and the laborious process of chasing funding that they can see the opening of their business as the finish line rather than the starting line. The truth is that securing investment in your business is not just a one and done activity that is jettisoned after you begin trading. It’s also an integral part of facilitating sustainable growth.
Throughout your business journey you may need to court investors and business angels, and when this happens it’s vital that you make your enterprise as appealing an investment for them as possible. While this is certainly a daunting prospect there are a number of ways in which you can demonstrate what an unmissable opportunity your business represents, here’s how…
Show them that you prise efficiency and innovation
Investors know that they’re in it for the long haul. They don’t just want to see results today, they want to see that you have the infrastructure in place to get results tomorrow. This requires investment in innovation, research and development (more on that shortly) but it also requires a proactive approach to your processes.
Show them that you are constantly evaluating your processes and tools to ensure that they are as efficient as possible. Show them that you circumvent future compatibility issues by using programs that are designed for synergy like BlueSnap and WooCommerce. This demonstrates that you have a forward facing approach that will stand them in good stead for a healthy return on their investment.
Make realistic claims backed by hard data
In your zeal to impress prospective investors it can be extremely tempting to promise the world and make bold claims that may sound impressive but wither under the lights of scrutiny. Investors don’t want to hear comforting sounding fairy tales, they want realistic claims backed by hard data such as your previous profit and loss, your ongoing business strategy and evidence of consumer engagement (e.g. social media interactions).
Show them how you will spend their money and what returns it will generate
When someone makes an investment in your business, it’s perfectly reasonable for them to expect to know where that money will go. If it will simply go toward keeping things ticking over as they are, don’t expect them to respond with too much enthusiasm. You should be able to tell them where their investment will go and how it will facilitate the kind of sustainable growth that will allow them to see a healthy return within a reasonable timeframe. It could go into the development of new products, greater automation of your processes to increase output and efficiency or to make a capital investment in superior equipment.
There are no right or wrong answers, but by demonstrating that you have a well considered and proactive approach that balances the needs of today with the emerging considerations of tomorrow you’re sure to be a shoe in with investors!