How to Impress Investors to Get the Money You Need
All too often good businesses run into a financial snag where they need more money in order to be able to carry on with their business. It doesn’t mean that their business is failing, it may mean that they need to expand or upgrade in order to meet the demands or stay on par with their competitors. Unfortunately getting investors is not all that easy. Unless a Company really knows how to go after the right investors and is able to convince them that they are worth investing in, it can mean the company ends up going out of business.
The first step is to make sure that there is solidarity within the Company itself. If there is a high turn over of staff or unrest that is evident within the personnel of the business, it can raise some red flags for any investors who are researching the potential of the company.
You have to convince your potential investors that you not only have products/services of value but they fill a consumer need. You need to know your target market and what their needs and wants are. Then you need to convey this to the investor. They need to be well assured that the business is going to be able to meet a demand, and there is going to be enough customers to make the business profitable.
Then you have to prove that up to this point you have done everything right and what could be possibly expected of the Company. Here your accountant can play an important role. He is the expert with the figures and will be able to produce financial statements that will give the potential investor all the right information to help make the decision as to whether they should invest in your business. These financials need to show that you know how to make money with the resources that you already have. This will build confidence for the lender by seeing that you know how to handle money in the best interests of the company.
You also need to convince the investors that you know how to grow the business. They are going to want to put their money into something that is going to increase their profitability over a period of time. To do this you are going to have to be sure that you have done your research, that your projections and forecasts are based on solid data and you have a strategy in place.
Finally you are going to have to display confidence, passion and enthusiasm towards your Company. If you believe in it then you need to convince your potential investors to believe in it and you in order to get the funding you are after.