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How To Promote Your Business To Investors

Feb. 23, 2021 4:02 AM ET
Johnny Fr profile picture
Johnny Fr's Blog
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There’s no doubt that external investment is the most effective way to grow and scale your business. Finding the right investors allows you to develop new products, conduct market research, and do countless other things to pursue your future success. Whether it is a startup or a multi-national organization, a business cannot prosper without investment.

To secure vital investment and grow your business, you need to convince your investors to put money into your business to fund its growth. Below are easy and effective tips for promoting your company to investors. Let’s take a look!

Pitch Your Business with Confidence

Even businesses with the perfect project idea fail to attract investors because of their poor communications or inability to express their ideas in a formal and proper way. Simply having a solid plan will not do. If you are serious about the project, then you must practice your pitch before giving a presentation.

Here a few things to consider when pitching to an investor:

  • Start your presentation with your target audience, the problems they have been facing lately, and how your business can offer a genuine solution.
  • Outline the USP (Unique Selling Point) of your brand
  • Focus on the rate of return your investors can expect from the project
  • Share basic ideas, such as how do you plan to streamline your payments and management, or how will you market your brand
  • Invite your investors to ask questions after your pitch and be prepared to answer them

Present the Results First

Typically, businesses first approach an investor to secure the required capital and then market their product to their audience. If you manage to attract your audience first, there is a good chance the investor will not need convincing. What could be a better way to prove the worth of your project than by showing your investors positive results? In this way, your project will essentially sell itself.

Of course, promoting your brand to your audience and then getting them to buy your product or service you requires a certain level of investment. However, it is always easier to attract investors when you have already started. Investors are willing to fund the project where they are certain the idea will bring huge profits in return for their investment and the best way to demonstrate this is by having paying customers. Therefore, ideally you will launch your project with your own start up funds and then gather investors once you’ve already started to show results.

Look for Smart Investors

It is important to look for people who are not only willing to invest in your company, but that will also become partners and help your business to grow thanks to their network and/or knowledge. An investor can add value to your business by making it stronger. Ask your potential investors where they see your business in the next three to five years and how can they can contribute to getting it there.

Have a Perfect Strategy

Investors put a lot of money into a project. Do you think they will invest in your business if you don’t have a solid and credible plan? Simply giving them a basic idea of how the plan will work will not suffice. Not only should you have a detailed strategy, but you should also ask your investors for advice. It shows them that you value their suggestions and you are willing to make changes to your plan. The advice from a professional investor will not only help you improve your ideas, but it encourages the them to invest in your venture.

Focus on the Return on Investment

Investors may like your idea, but at the end of the day, the most important thing is the return on their investment. You can share your ideas of how you plan on getting your business to grow on a global level, but the investors will want to know what’s in it for them. So, when you are presenting your project idea, be sure to focus on the return on they will get from their investment.

Find Reliable Co-founders

The strength of your project isn’t the only thing an investor considers when deciding if they should invest in your business. They’ll look at your business infrastructure, your team, and other factors before making a decision. For this reason, it is critical that you choose the right partners and co-founders. Building your team is a delicate process. It is essential to look for reliable business partners, as having talented people working with you will make you more attractive to investors. Additionally, you can’t work on a project single-handedly. Before you approach potential investors, make sure you have the right team in place.

A successful business is one that has smart investors who act as the active members of the company, rather than a bunch of people that put in the required money and leave everything to the owner. Take your time, do your research, and select your investors wisely.

7 Steps for Pitching your Application Development Ideas | Appian

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