Most business owners will want to pitch for investment at some point. That either happens at the start of the venture or when you plan to expand or grow the company. However, there is a lot of confusion out there about the best methods to follow. With that in mind, this article will draw your attention towards three crucial steps you need to take during the process. Hopefully, entrepreneurs who put this advice into action will save themselves a lot of time and increase the chances of success.
Step 1: Explain the reasons for investment
Before anyone gives you money as an investment in your firm, they’ll want to know what you’re going to do with the cash. So, you need to work out a plan that explains exactly how the capital will change your operation, and how much profit it will create. You also need to define the perks you’re offering to investors. For instance, you might want to:
- Offer them lump-sum payments
- Provide the investor with a percentage of the business
- Strike any other deal
If you have that info available, you’ll find it much easier to convince people to invest in your operation and help you take it to the next level.
Step 2: Present the company’s financial information
Nobody is going to invest in a company unless they can take a look at the firm’s financial information first. The individuals will want to know how much money you make each year, and how much you think it will create in the future. So, do yourself a favour and create a growth plan as soon as possible. Also, get in touch with your accountant and ask them to create a document that highlights all the essential facts and information the investors will want to know. You can then present that paperwork during your pitch.
Step 3: Create visuals to support your pitch
There is no getting away from the fact that human beings tend to react well to visual stimulus. With that in mind, you’ll tip the scales of balance in your favor if you create some digital presentations that hammer your points home. Thankfully, you can get Google presentation templates online these days without spending a fortune. That should help you to save a lot of time and ensure you create visuals the investors will understand and appreciate. Of course, you could always outsource the task if you don’t have enough time to undertake it in-house.
If you follow the three steps outlined on this page, you will give your company the best possible chance of success when it comes to seeking investment. Now you just need to identify the people most likely to show interest in the opportunity. There are lots of private equity firms out there at the moment, and so you just have to sort the wheat from the chaff. Look for people who already invest in companies in your market. They have experience in the process, and so they’re the ones who stand the best chance of giving you the cash.