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4 Ways to Help Make Your Business More Appealing to Investors

4_Ways_to_Help_Make_Your_Business_More_Appealing_to_InvestorsIn taking your business to the next level, you’ll need capital and other resources to ensure steady growth and expansion. While other businesses choose to be independent, some seek funding through loans from banks, crowdfunding using available online platforms and investment from venture capitalists or other businessmen. You don’t need a virtual CFO to tell you that banks have stringent requirements when it comes to loan and credit approval, seeking out potential investors is not uncommon in the current economic market.

Aside from finding the right investors, making your business more appealing to investors is an arduous but nevertheless necessary phase in getting financed. Here are our four key suggestions from financial consultants that can jumpstart your investor engagement.


Make sure that your finances are well-documented

Your finances say a lot about your business more than any pitch or proposal. Be transparent in laying out the numbers and make sure that they are properly audited and validated. If possible, provide explanations and analyses regarding expenses, acquisitions, profits and losses in your timeline. Detailed cashflow information can be useful in illustrating what’s going on in the company. Remember, investors don’t like unknowns and indefinites when it comes to potential investments. Dispel doubts using transparency and attention to detail.


Have clear goals and the competencies to reach those goals

Instead of just talking about the financial side of your business, talk about your goals and objectives. Aside from being realistic, these goals should be actionable and measureable. Talk them through about where you are in achieving those goals and how their investment could help your business.


Additionally, highlight your company’s competencies along what makes it capable of reaching those goals. Give them an idea of your plans and how you intend to stand out from the rest of the other businesses in the market. However, don’t detail your business plan’s specifics. While you definitely want investors to know what your company is capable of, giving out too much information about your strategy can also be used against you by other businesses. Demonstrate expertise and capability but don’t go overboard in giving out your secrets.


Humanise your business

While numbers talk and strategies matter, your people are your greatest assets. Introduce the people who drive your business forward. Who you work with and the people responsible in your operations matter for potential investors. Additionally, humanising your business by letting them meet the people who have their own stakes in it makes it easier to understand. People don’t invest in business exclusively because it has a great idea behind it; people do it because the business has the right people willing to push it in the right direction no matter the challenges.


Talk about what’s in it for them

In a sense, investors are much like your target market: they have to see the business’ value in the context of what’s in it for them. Highlight the benefits of investing in your company instead of just talking about how effective and successful you are at what you do. Why should they invest in your business? What do they get? Do they gain some semblance of control in decision-making? What are the risks involved? Orient them with what to expect and what they gain from investing in your business.

 

Want to get more insights and tips for your business’ financial pillar? Download our free eBook, The Financial Pillar, and learn how to streamline your finances and use the latest tech in getting the best results.

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Topics: Finance