As an entrepreneur who is starting a business on his own, you may face financial struggles during your journey. You may get the ball rolling initially without outside help but at some point or another, you may seek some financial help to grow your business. That’s where the investors come in. Seeking financial help from investment is always much better than taking out a loan or borrowing money from friends and family.
However, you need to remember that these investors are very different from the lenders and their criteria for determining whether or not you and your business are worthy of loan offers as well. Getting an investment can be great for your business, however, it can be very difficult as well. Your investor needs to be convinced that your business is going on a path of success and you have the capability to take it to the next level.
Here’s what an investor looks for in the business before investing:
1. A Unique Idea
Not only consumers but investors also get excited with innovation If your idea is bringing something new to the table, it will certainly amuse the investor. The current market is saturated so if your idea is founded on the traditional principles then you are likely to struggle in the industry as a new business.
Introduce some creativity or innovation with your idea in order to attract investors, it will not only be helpful for your business but also help you get investment pretty easily.
2. A Solid Business Plan
Your business plan is the first thing your investors will ask you for. It will help your investors determine your seriousness about your venture and how passionate you are about it. No investors will be willing to invest in your business without a rock-solid business plan. Here are some of the things that your business plan must include:
- Analysis of your competitors
- Your target base and the research that shows why they are the ideal consumer base
- Financial projections that are based on data
- Marketings goals and plans for the future
- Projected timeline for when your company will start generating revenue
- Sales channels and the numbers showing they are effective
- Current or potential obstacles and how you plan to deal with them
3. Business Readiness
When your investors are interested in your business, they are not only judging your business based on its sales records and revenue but they are also studying you and trying to evaluate if you are the right person to invest in. Your visions, ideas, and efforts will reflect in your business, this is why it is important for your as a businessman to show your true potential and prove that you have what it takes to make the business reach its new heights.
4. A Strong Narrative
Investors are never short of entrepreneurs trying to pitch them their business idea so you need an X factor to show them you are different from the herd. It’s all in the story and your way of presenting your business idea. Before you try and sell your business to them you should sell them your story, which includes your own and your business’s as well. Show them how your business is different from others and what makes it special A great story is always a big part of your sales pitch.
