This blog is the eighth in a series of blog posts on how to grow your business, where we cover a new topic every week to help you make the most out of your small business. This week, we’re looking at how to make your small business attractive to private investors.
Attract investors
- Plan. Preparation is key when you are planning on approaching investors. You should know exactly what you are asking for, what you can offer in return and how much you are willing to negotiate on. Most of all, investors want to be sure that you have the potential to bring them returns on their investment. Being enthusiastic, passionate or talkative will not be enough to win over private investors; you need to able to prove that your business has a clear upward trajectory and that you have strong growth potential.
- Research. Once your plan is ready, it’s time to look for private investors. Using your private and professional networks is a good start, but you may also consider using platforms like Invest Europe or the Angel Investment Network. While conducting your search, you should research every name that comes up, particularly if you have no personal connection with them. Find out their background, what types of businesses they have previously invested in, and what their values are. This information will help you create a personalised pitch.
- Pitch. After you’ve chosen potential investors to approach, you need to get your pitch ready. It’s a good idea to create an ‘elevator pitch’ – a brief and catchy description of your business ideas – and practice your pitch numerous times. You want to be able to speak confidently to anyone and hopefully interest them in letting you make a full proposal.
Most importantly, make sure your business plan clearly shows what you are going to do with the money, and how this will help bring growth and returns on investment. You should have sales projections based on real numbers, and ideally, you will have conducted a market analysis already. You should be familiar with every detail of your strategy, and you should know how much you’re willing to compromise.
Don’t give up
Hopefully, your business plan will attract the right people who can back your business ideas. However, for many people, approaching investors will involve a great deal of rejection, and this can quickly put a stop to your plans. Keep in mind that some people who have funded their business ideas with investors may have given their pitch dozens or even hundreds of times. There’s no harm in returning to your pitch, refining it, and trying again. You may also get some constructive feedback if you ask for it. Although it’s essential to continue with business as usual, if you are confident that you can bring great profits in the future, you should have faith and keep trying.
Grow your business with TaxAgility
TaxAgility is the local London accountant who can help you grow your business. When constructing a business plan and a pitch, you will need to gather hard data and numbers to show you’re moving upwards. We know the ins and outs of small businesses, and with us you can create the perfect plan for the future.
To get help with investments or any other aspect of business growth, call our specialists at 020 8108 0090 or use our Online Enquiry Form.
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