In order to grow your small business, funding is important and that’s why as a business owner you must explore all funding options as you continue to grow your business. One funding option is getting funds from investors but what happens when you do not know one? Is it possible to attract a small business investor to your business without having to go through the eye of a needle? The answer is, it is absolutely possible. In this article, we will share how you can make your brand attractive to small business investors.[Great Read: How to Start a Business Without Quitting Your Day Job]
Who is an investor?
By our definition, an investor is someone or an institution that makes a financial and/or intellectual commitment in a venture or business in exchange for dividends. There are different types of investors and you must conduct your due diligence, understand the terms and conditions and ask lots of questions before you take funds from anyone.
Why You Should Consider Bringing an Investor on Board
As an entrepreneur, there are lots of reasons why you should consider bringing an investor on board and some of them include:
The ability to scale (quickly)
Having an investor on board means that you’ll have extra funds that can help you scale your brad quickly. For example, you might not have enough money to run marketing campaigns but funds from an investor could help you create marketing campaigns that help you penetrate the market, acquire new customers and increase your sales and profit.
Access to quality connections
You must have heard of the saying: Proximity is Power. The closer you are to people who are influential, the more power they have to impact you positively. Of course, some connections might impact you negatively but it’s up to you to be discerning about the types of people you are connecting with.[Are you a woman entrepreneur that needs business mentoring? Check out if our mentoring platform is the perfect fit for you. Click HERE for the details]
Access to more opportunities
If people know that you’ve been able to convince an investor to invest in your business, then they are more inclined to listen to you and grant you more opportunities. More opportunities mean you can expand your business and even gain more grounds.
Attracting an Investor to Your Small Business
We’ve shared some of the reasons why you should consider bringing to your small business but how do you attract investors when you do not have people to connect you? Here are a few ideas you might find helpful.
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Always be ready
One of the best ways you can attract an investor to your small business is by being ready when the opportunity shows up. You can meet an investor in a public bathroom, at a train station, in a queue, at a job interview, in a group, etc. Investors do not have to be in a glasshouse always. They are ordinary people like you and us who are integral parts of our community. If you meet an investor and the person finds you to be interesting, chances are you’ll get scheduled for an appointment. Now, you might be thinking, how do I get ready?
One of the first things you can do to show that you are ready is by practicing your introduction and pitch until it becomes your second nature. If someone asks you to introduce yourself, do you have key points you touch on that make your introduction memorable?
Investors are looking for business owners who not only know what they are doing but also know how to present the things they do in unexpected situations?
Focus on developing quality relationships
One of the greatest mistakes you can make in life is requesting funds from an investor you barely know and vice-versa. Money is hard to come by and when you allow money to be the focus of why you want to connect with an investor, then you might not get the money after all. Instead of focusing on what you can get, it’s better to focus on what you can build. Your target should be relationship building.
When you build quality relationships, people trust you more and this, in turn, helps them to develop the confidence of wanting to do business with you.
Position yourself as the expert in your field
Investors are looking for pacesetters. In other words, they are looking for experts who are passionate, disciplined and consistent. This means that in order to attract investors to your small business, positioning is KEY. In your online and offline interactions, be sure to position yourself as the subject-matter expert in your field. People will notice and it will make them be more inclined to doing business with you.[Great Read: The 3 Secrets Smart Entrepreneurs Know About Building a Profitable Brand]
Have a solid business plan
Most investors will likely ask for your business plan. Your business plan helps them to determine whether your business is viable or not. It also helps them know whether you truly mean business or you are just a wannabe. If you meet an investor today, will you be able to send your business plan to the person within 30 minutes? What will the person find?
Your business plan is a document that contains the details of who your customers are, how you attract customers and what type of pricing structure you operate with. In addition to these, a business plan reveals the direction of your business in the nearest future.
If your business plan is solid, it makes the investor more confident in your ability to judiciously use funds that are left in your care.
Funds from an investor can help you scale your business faster than you’d without it so try all you can to attract investors.
Overall: As you go through the process, remember that there’s a probability that you’ll get an investor after your first pitch so be ready. Also, there is a probability that you’ll get rejected by lots of investors. Be ready. Whatever the circumstance, you need the grit to keep going so you won’t lose your motivation.
Thank you for reading! What is one thing you will take away from reading this article? Please share it in the comment box below.
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