2016-08-12 00:00:00Money & FinanceEnglishhttps://quickbooks.intuit.com/in/resources/in_qrc/uploads/2017/05/Finance-How-to-Involve-Investors-in-Your-Business.pnghttps://quickbooks.intuit.com/in/resources/money-finance/involve-investors-business/How to Involve Investors in Your Business

How to Involve Investors in Your Business

2 min read

When you run a small business, you may find it hard to acquire the right amount of capital to expand your business. With careful consideration, you need to determine the time that you are ready to start talking to investors and get them on board. It therefore becomes important to create the right pitch and set up a large list of potential investors that are potentially interested in buying into your business.     Here are four simple steps that will help you involve more investors into your business:   Construct a list of potential investors There is a significantly high chance of investors rejecting an offer to invest in your company. In order to reduce the risk, you need to cast a wide net to pull in as many investors as possible. Your aim should be to create a focused effort on 30 to 50 investors that are most likely to be a good fit for your small business. As a continued effort, you can further expand the list and review those that you wish to add and remove based on their experience and how they have fared as investors in other firms. Entrepreneurs and other small business owners are valuable resources that will help you make the right decision in helping you find the best investors and flagging investors that are known to be difficult and are not investing actively.   Link and connect with your Networks It is common knowledge that investors are keener to invest in companies that they have been introduced to by a common contact. This will help you to a large extent as there is a sense of trust and admiration that is created with an intermediary that is common to you and the investor. Scan through the list and link the names of investors with mutual acquaintances and this must be done by reviewing each investor individually. Give your contact a firsthand introduction of your business and why it is important to bring investors on board. This will help your contact to understand why it is important to position your business in a favorable light to the investor and there a sense of satisfaction in completing the process.   Craft the perfect introduction At times it is difficult to find the right introduction when you are crafting your emails. You need to be selective about who you need to reach out to and do ensure that you are not sending cold emails. Use a proven business model that showcases costs but magnifies the extent to how your business is profit generating. Convince your investors with impressive company success stories and favorable business projections.   Make your investors have a reason to reach out to you Create a spark that will make investors reach out to you and generate attention for your team and your business objectives. Ensure that you are in constant touch with your investors and follow through till the talks are cleared, the deal is cut and the investment is duly collected and all the legalities are complete.   At any given moment, the deal may fall through but you should not let that get to you. Instead, you should follow up in a professional manner and provide them with news about your business. In due time, your business will find a good team of investors that will help you build a successful and profitable firm.  

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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