As entrepreneurs start their journey of growth, need arises for investment. Before meeting the investors it is good to have a keen look at the current situation of your business or it can be termed as the overall health of the business too. Well, this is the time of introspection on how you are going to approach investors, why you are going to approach them and what and how much investment would be feasible for the growth of your business.
Select your Investor
Time is money and money is Time, so do your homework. Shortlist the investors who can be approached, check their history, their past investments, expectations and the kind of deals and closures and clauses set by them previously. This gives you a fair idea of drilling down to make a list of your own.
Have your numbers ready
The business metrics matter a lot at this stage. This is looked into by any investor before even considering the investment. So have it ready from the day of inception to date, as this also speaks volumes about the current status and also gives projection to future growth. At the same time, it gives you an opportunity to project yourself as a man who really means his word and knows his work in and out.
Don’t hide your failures
A failure, at one time, was shied away from. But today it is considered to be valuable as it is an experience which leaves the person with a lot of learnings from which you have emerged. So there is nothing to hide, investors value this trait as it builds an impression of not giving up the attitude of yours which is valued in today’s business world.
Be clear on what you need the investment for
Investors as the word tells are in it for the returns they gain on investment. So they would like to have clarity on what the investment is for and how they are going to get back the returns. So have a growth plan ready to pitch into this area. A detailed growth plan to the investors will gain their confidence that their money is in safe hands.
The meeting with prospective investors can quite a task, but by being prepared will increase chances of getting investment. This also ensures that you are walking into it with full knowledge about the need of your business and at the same time helps you to create an impression with them as the relationship with the investors goes a long way in the journey of nurturing and growing the business.
— Team SoS