Qualifying for angel or venture capital funding is a daunting tax for most businesses. Your business has to be a great fit to get the attention of potential investors. You have to show how your business is the next big thing. If you are looking into expansion and striving to keep up with the big dogs, you must show notable growth ambitions. In such cases, outside funding is vital for the success of your business. Here are five ways of impressing your potential investors and taking your business to the next level:
1. Have audited and reviewed financials for at least three years
Audited and reviewed accounts show the seriousness of your business. To get the undivided attention of potential investors, you must show that you are in it to win to it. At least three years of audited financials show the investors what you have been up to and whether you are in the right direction.
2. Have a transparent business model with growth potential
Angel investors and capital venture capitalists have no time or resources to waste. They want to put their money in businesses that can maintain a laser focus. They want to deal with organizations that have a clear goal and direction. For any company to be appealing to potential investors, they need a well-defined business model with potential growth.
Your business needs to have an actionable and strategic plan with potential room for growth. You should not have far-fetched numbers that are not realistic. Your plan should be ambitious yet practical.
3. Pitch a return on investment
Investors put resources in start-ups as a means to an end. They aim at making profits and high returns on their investments. When looking for potential investors, you must show what the investors should expect from your business as a return on investment.
So your business is appealing to firms like The Chernin Group (TCG) and more traditional investment firms, seal the deal by highlighting how they will gain from your company. To win the vote of angel investors and private equity investors, you must illustrate how they will get their return on investment.
4. Demonstrate strong leadership
The leadership within a company plays an integral role in your investors’ choice and whether you will get their attention. Investors aim at putting resources in companies with a solid background and leadership. It gives them confidence, knowing that their money will be well-managed for them to enjoy high returns.
5. Prove that you are different from competitors and understand the problem you are aiming at solving
You need a thick skin to remain alive in the business arena. You must be different from your competition to get potential investors’ attention. You must have a competitive edge differentiating you from the rest of the flock.
The best way to achieve this is by understanding your business’s nature and what you aim at solving. Your business should solve a niche problem by providing the right and appropriate products and services.
Bottom line
For any business looking for external funding, it must sell itself to investors. They should ensure they have a winning pitch showing what they can deliver. Ensure that you do in-depth research on the specific investors to know who you are dealing with and what they are looking for. The five ways mentioned above can help you get investors’ attention to elevate your business to greater heights.