Now that you’ve finally got your business plan , you’re ready to start bringing in investors, right? Well, not so fast! First, make sure you know how to attract investors to your company so you can start adding value to the world and taking your business to the next level. Here are 10 tips for attracting investors that will help get your business off the ground and growing faster than ever.
1) Set up an email address and social media accounts dedicated to investors
As a business owner, one of the first things you should do is set up an email address specifically for investors. This will help you keep your conversations organized and provide a clear view of all the people who want to get involved in your company. However, this email address should be kept separate from any other business-related emails so that your potential investors are getting only relevant information from you.
Some companies also find it helpful to maintain an active social media presence, as this allows potential investors who might not otherwise have found out about you the chance to learn more about what’s going on in your company and how you’re doing.
2) Follow investors on social media
Investors often share their thoughts and ideas on social media, so following them can be a good way to get an insider’s perspective on the markets and trends. By observing what they post, you can also discover which types of companies may have interest in your products or services. And lastly, it will keep you updated on any pertinent news about the investor that may be relevant to your business.
3) Decide on the best times to reach out
- It’s important to reach out when you’re starting a new company and looking for a financial partner. Tapping your friends and family is great, but they will eventually stop investing in your business when it grows past the family business stage.
- It’s important to find potential investors early on in the process so that if you need an investment, there are plenty of people interested in funding your project.
- Don’t be scared or intimated by large investors, remember that they often invest in start-ups because they want something new and exciting. Just be sure to keep an open mind about their suggestions and make any necessary changes for the best outcome for your company.
- Keep up with trends!
4) Give potential investors access to key resources
Investors will want your company to succeed because they’re often looking for a specific thing that you offer. Therefore, take advantage of your unique value proposition and highlight it in everything you do. Help them understand how much their investment can yield for them and more importantly for them, the world. Show them where they can go on your website or in the next section on the potential market size so they know their initial investment will pay off many times over in revenues.
5) Send information before meeting in person
-Don’t waste time with prospects who are not in the same industry and stage of growth. Spend that valuable time with someone who can help you reach your goals.
-Be ready for anything when meeting investors, including getting asked Are you sure? or How much money do you need?
-We all know how difficult it is to get a meeting in Silicon Valley–you need a compelling story and be persistent!
6) Develop a short pitch that includes both your idea and team’s background
A simple framework for structuring a short pitch: introduction, what it is and how it works, why the problem is important; solution and vision; team, progress and where you are going.
7) Prepare unique ways of showing how you stand out from competitors
First and foremost, the investor relations team must show that the company is different in some way. It should highlight the unique strengths and benefits of investing in this company. Show why the company is a better investment over others like it.
This means demonstrating high-quality business skills, effective marketing strategies, innovative products, credible leadership and more. Once investors are convinced of these points, they will feel comfortable committing their money to your company’s cause.
8) Review it. Have someone else review it. Repeat.
Contact an established investor. If you can get an introduction to someone who is active in the company, these meetings will often be fruitful. Remember that they receive dozens of pitches a day, so you need to get your point across quickly and concisely if they’re going to take the time out of their day for you. Avoid spending too much time with introductions – we recommend just three minutes total per introduction unless there’s more than one person at the meeting. Getting an intro is not a long-term solution, but it could lead you to a partner down the line or could yield an investment when combined with other activities described here or on another sheet.
9) Reach out regularly after initial contact
Following up on your initial contact with an investor can be critical. It takes some time and effort, but following up lets the investor know that you are both interested in them and invested in the success of your startup. Plus, it never hurts to have a well-known investor attached!
10) Close your deal, if possible
Close your deal, if possible: The best investor relations strategy is to get the investors on board.