Even if your company is doing very well in the market, there will come a time when you need investors to pitch in and help. Only very rarely can a company fund an expansion or the launch of a new product with its own revenue. Also, aspiring entrepreneurs need to appeal to investors to get a new product the green light. Bank loans can only do so much for an ambitious company. So, here are several tips on how to make your business venture more appealing to potential investors:
Tone Down the Marketing
Many businesses thrive on elaborate and over-the-top marketing campaigns. Though these might bring in new customers, investors in general are weary of marketing tactics. When an investor sits down with you to discuss a product, he or she doesn’t want to hear your advertising jingle. Investors want solid data and genuine facts about how your products are doing in a particular market. They don’t want hyperbole, exaggerations or pretty but misleading pie charts. Therefore, when you make your presentation to potential investors, keep it simple and highly accurate. Don’t include any marketing claims in this presentation, unless they are completely true.
Present Solid Numbers
Any good investor will interrogate your thoroughly on your financial figures. These could be estimates, future projections or current revenue. In any case, you should be well prepared for difficult questions and hard cross examinations. If you want to pass, you will need to know your business like the back of your hand. You should be able to confidently answer these questions in order to reassure the potential investors that your company is legit and profitable. Therefore, do your homework. Familiarize yourself with all operations and projects conducted by your company, and memorize those accounting figures.
Offer Outside Opinion
Now, a savvy investor might not want to simply take your word that your company is legit. They will most likely conduct their own investigation on your company. To appear less opaque, you can present an analysis of your company’s operations conducted by professionals, such as Corporate Business Solutions, that have no vested interest in your company. Also, outside scrutiny ordered by you will help you spot your company’s weakness before your investors, or competitors, do, and give you ample time to fix them.
Avoid PowerPoint Slides
If possible, avoid giving a standard, run-of-the-mill PowerPoint presentation like you used to in college. It’s possible that investors might perceive you as unrelatable and untrustworthy if you are reading numbers off a screen. It doesn’t hurt to have PowerPoint slides, but these should only complement the presentation you give, and should not be the focus of your presentation. The best way to appeal to investors is with a good speech that comes from the heart. Once again, don’t make elaborate claims. Try to soberly state facts and sound inspiring at the same time, if possible.
In addition, you should allow investors to meet your employees, particularly the ones who will be leading the projects and product development. Your managers should accompany you to these investor meetings and make an impression as capable and reliable businesspeople.