How To Capture The Attention of an Investor?
Getting financing is vital for the self-employed, and it doesn’t seem very easy, in general for all entrepreneurs. Many due to ignorance, others due to lack of interest to start the search, do not find financing, and here we go…
Today we will dedicate this article to how to capture the attention of an investor. Keep in mind that anyone can obtain financing; only a few points are necessary to follow:
1. Think like an investor
The first and most important idea, you must become the investor. When we face the investor, the person who has to be interested in your business, we have to think like him and be interested in what interests him. An investor will look at the idea that you propose, the team you propose, and what he will later gain from that investment.
An investment will get more the more risk there is, that is, the new moves investors, they like the new and invest in it. Look for your business to be different, in terms of the sector in which you are. Technology-focused sectors find investors quickly, probably, for this reason, they are the order of the day, and they do not stop innovating.
It would be best to focus on how you exhibit your project focusing on those three points that we talked about before: the idea, the team, and the profits.
2. Make sure you are in the right phase to find an investor
We assume that when you are in the phase of seeking financing for your business, it is because you have already seen and verified that your business will be profitable. In other words, you are not in a stage of exploration, but of business development. If that’s not true, then you won’t be able to capture the attention of an investor.
At this stage, you have the ability to assess your company and your situation to know what percentage you can offer, for this, calculate what you need and what the company is worth. Your offer must be clear from the beginning, you must show confidence, even if you negotiate later.
The right question to ask yourself at this stage is: what is the right percentage that I should offer the investor? and what is he going to ask me in return?
Rehearse your answers.
3. Worry about the presentation of your project
It is essential that you invest time in preparing how you will present your project to investors, for example:
– Start by introducing yourself and the team that accompanies you. Many times business is not risky, but what is risky is investing in people. Suppose you don’t have the capacity to carry that project forward. In that case, investors will notice, so spend time learning about the business, training your team, and then preparing to present your ideas and your team.
– It is vital to prove that it is a feasible, viable, and scalable project, no matter what type of project it is. It is feasible if you can carry it out according to the schedule you propose. To be viable you need the right people and resources to achieve it. And finally, it is scalable if you can achieve business growth by increasing sales and an adequate return on investment.
Presenting a project is the door to negotiation, and that should be your goal. Therefore, minimize investment risks and clearly express all the numbers that your business implies. For example, you can express yourself clearly and concisely as follows:
“With an investment of 50,000 euros in the technology area, we aspire to increase sales by 250,000 euros and achieve an ROI (return on investment) of 50% in 6 months”.
With this short sentence, you explain the destination of the investment, the benefits it will obtain, and the recovery time for your money. We recommend you to read the article of Josiah Humphrey on How to Create a Winning Investor Pitch-Deck.
As for you, you must make an effort, be constant, be open to other possible proposals and look for many, many investors to help you in these times, which are not easy at all.
Tags: catch an investor, financing, financing for freelancers, financing for self-employed, financing for your business, Funding Options For Freelancers, how to finance your business, how to obtain investment, investment for entrepreneurs, pitch deck investment