How to Attract Investors for Your Business

Finding funding is one of the most challenging parts of starting a new business. However, it’s not just new businesses since large companies even struggle with funding from time to time. That said, one of the most common ideas that come to mind when thinking about funding is attracting investors.

Of course, as investors, they usually check out the risks versus rewards when considering investing in a company. That’s where you come in. You’re responsible, as the entrepreneur, for getting rid of those fears and enticing investors to invest in your company.

You have to make your company appealing and exciting to warrant those investors to keep pumping your company with their money. That said, planning is crucial when you want investors to invest in your company, whether they’re angel investors or venture capitalists. To help you with gaining more investors, here are some tips on how to attract investors to your business.

Soft Sell

Soft selling refers to an advertising and sales approach that often employs subtle language and a non-aggressive way of selling. With effective soft selling, you’ll be able to sell your product without the risk of angering your customers or pushing them away. However, because of the soft nature of this sales approach, it doesn’t often result in a first-time sale, but it does encourage repeat sales.

Also, take note that soft selling isn’t a passive approach neither does it require a salesperson to be passive. Rather, it encourages selling without coming off as pushy to the potential customer. Using soft selling in a sales pitch would require you to be more of a conversationalist, where you would use conversation techniques to keep the attention of the customer and make them more relaxed.

Also, a salesperson would have to maintain a fair amount of energy to keep the conversation rolling and keep the attention of the customer. However, this technique isn’t only applicable to direct customers. You can very well use this method when you’re talking with investors. It’s typically the same, but with higher rewards because instead of selling a product, you’re selling your ideas to your investors to persuade them to invest in your business.

Startup Accelerator

A startup accelerator is one of the most efficient ways of attracting investors. This program promotes having a few years of company growth in a short amount of time. It’s like a camp of sorts where you learn about developing market research and investment. Not only that, but several studies show that graduates from accelerator programs have reached significant milestones much sooner than those non-graduates.

One of the benefits of a startup accelerator is seed funding. Programs often offer seed investments to make money. So, how does it work? They would give funding to startups enrolled in their program in exchange for equity. Another benefit you can get from this program is access to a network of startups who have also enrolled in the program.

This would allow you to talk and work with other businesses and build relationships. And lastly, we have what we call a demo day in the program. During this day, you’ll get to meet investors and pitch your startup in hopes of getting an investor to invest in your business.

Some businesses prefer slow growth over fast one. However, if you’re looking to grow your business in a short amount of time, enrolling in a startup accelerator might be the best thing for your company.

Pitch Deck

Of course, talking could only get you so far when pitching your business. After all, people would like to be pleased with what they see. If they only hear words coming out of your mouth, it would be boring and they would lose interest very fast. That said, having a pitch deck would keep your potential investors interested in what you’re saying, giving you a higher chance of landing at least one investor.

So what is a pitch deck? A pitch deck is a short presentation that entrepreneurs make to give potential investors a quick but very detailed overview of what their business is all about. So why is it important? A pitch deck is the first piece of communication that your investors would see during your pitch. Generally, you can give this pitch deck through an email or in person before you start your pitch.

Of course, a pitch deck doesn’t only give your potential investors an idea of what your company is about. You can also use it as a tool to entice them on why they should invest in your company.

Final Words

Business funding can be a struggle fest. Sure, there are different types of business loans, such as a loan where instead of paying back the loan after only two weeks, the borrower has three months to repay it or a merchant cash advance, which is technically a loan. But if you don’t want to take out a loan and want to look for investors yourself, you can use these tips to attract investors.

Typically, it can be hard, but with the right approach and techniques, you’ll be able to land an investor. It may not be soon enough, but with perseverance, you might just get one.

Dragan Sutevski

Posted by Dragan Sutevski

Dragan Sutevski is a founder and CEO of Sutevski Consulting, creating business excellence through innovative thinking. Get more from Dragan on Twitter. Contact Dragan