How to give your business the best chance to attract an investor

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Attracting an investor is no easy task, especially if you’re just getting started as a small business.

However, a strong investor can form the foundation for future growth, and become a stepping stone to long term profitability and success. That’s why it’s important to take the time early on to ensure your business is in the best position to attract the right investors.

Here are three tips for attracting the best possible investor to your business.

Build a convincing case

When attracting outside funding, it’s important to show you’re committed to the business and the idea. Often, this means investing your own finances in the company and reinvesting yourself when you turn a profit.

If you’ve already obtained funding, be sure to detail this backing to future investors. It’s important to remember money attracts money.

Expanding your networking circle

At this stage, you should visit a number of business events, conferences and trade shows related to your industry. These early networking events can help you meet investors and establish lasting connections.

You also need to be prepared to hold conversations about your business idea and be able to answer detailed questions. Prepare to give much more than just ‘yes or no’ answers when attempting to attract investors.

It’s also important to keep an open mind, as you can meet investors in a number of places. Some businesses may find they meet a key investor in a lobby outside an event.

The importance of a business plan

A solid business plan serves a number of purposes, including being able to attract investors. This plan should be detailed, thought out and reinforced with proof that your idea will be successful.

Once the plan is in place, it’s important to understand both business financials and goals, and be able to easily field investor questions.

It’s important not to sell yourself short when creating a business plan, as it’s one of the most important business documents you will produce. If you need help putting a comprehensive plan together, contact an experienced consultant.

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