How To Attract Outside Investment To Your Business

There comes a time in the journey of most businesses, when they need to look for outside investment in order to grow and scale the business effectively.  Whether you’re looking for a relatively small amount or a multi-million dollar investment, you need to jump through a lot of hoops in order to find and secure the right deal. Both sides need to know that they are going into business with the right people in order for things to work. 

Here are some of the basics you want to get right in the early stages of seeking financial investment. 

Approach The Right People

When you go out for investment, you don’t want to waste time on people or funds that only invest in certain sectors (that aren’t yours) or specialize in particular stages of development. At best, it’s a waste of time, at worse it will make you look desperate. 

There are many options to look at. For example, Petrichor is strong in the medical sector, so if that’s your vertical, then it would be a potential investor. 

Your Reputation

Anyone investing in your business is going to do their homework on you, which means that you need to be squeaky clean when it comes to how you present yourself online and your reputation in the business community. 

Make sure that all of your client-facing websites and social media accounts are in order. Lock down any personal accounts, especially if you have any potentially controversial activity on there. Even consulting someone like Wegman Partners on your legal rights here can help you. Refrain from getting involved in any online arguments or controversies. 

Your Knowledge

Expect your understanding of the product, market, and vision for the company to be tested to the limits of investors. They want to be confident that you are the best person to take their money and turn it into a successful venture. Don’t even approach anyone until you’re confident in your approach. 

One of the best ways to increase your knowledge of your specific business is to thoroughly look into your specific data analytics. This is something that expert investor and entrepreneur Joe Sitt understands implicitly, especially when it comes to life sciences.

Your Financials 

Before you get any form of investment, you will need to open up your financials during the period of due diligence. This means that they will have to be completed in order so that any future plans based on them are as accurate as possible. Investment companies and professional investors will be able to see immediately if you’ve been financially compliant. 

Your Team

The team who will be bringing your vision to life is very important. You should seek to convince investors that you have the right people in place, or show how their investment is going to attract this talent to the business. Display the talent and achievements of your team to the best of your ability. You cannot solely run your company with you as a figurehead so be ready to answer questions about who will form your team. 

Conclusion

It takes more than an impressive-looking pitch deck to gain outside investment. There must be substance too. Your business plan should be thorough, based on research and credible insights into the market. Finding the right investor isn’t easy but by having prepared thoroughly, you increase your chances of finding them. 
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