Running a business isn’t always a solo endeavor. In many cases, there is a need for outside funding – from investors who are able to provide targeted insights and investments that can take a company from an early or slow growth phase into something more solid, more successful over the long term.
Check out the tips below to encourage more investors for your company.
1. Encourage Collaboration
A a recent Gallup poll demonstrated that when the relationship between a firm and a potential investor is based on engagement and collaboration, the overall bond and likelihood of the relationship gets stronger.
As a company representative – or owner, whatever your position – if you can take the time to engage potential investors while sharing that their advice and insight will be critical to your company’s growth, investors will feel more confident in your company and in what you have to offer. . This encourages investors and makes it easier to seek additional funding going forward. In fact, according to the same study, 93 percent of investors who consider themselves fully engaged in a particular investment are highly unlikely to stop funding or start investing elsewhere.
2. Make Sure The Vision Is Similar
If an investor has a different vision for where your company is going, has underlying motives or doesn’t catch on to what you’re trying to do, the endeavor will fail. While it may be more difficult, finding potential investors who share your vision and actively support your idea is the best path to follow from the start.
Look in the right place. Be sure to seek out investors who are familiar with the industry, knowledgeable about the subject and have detailed discussions before any offers or requests are made. When looking at investor prospects, a good place to start is one of these About page on their website. If you have a feeling that you have a question or something that has the potential to become an issue in the future, it’s best to back off early.
3. Set Expectations from the Beginning
As important as find investors those with the same vision as you make expectations clear from day one. State your expectations – how much insight you want from investors, the amount you’re seeking, the frequency, how you expect to raise additional funding and how you will provide updates – from the start in a detailed document. Be open and have nothing to hide; doing so would only cause problems in the future.
4. Provide Ongoing Updates
In most cases, investors don’t want to shell out a huge amount of money only to move on and never hear anything else to come. Investors want to be sure of their investment, to understand that their money is flowing where it should be and to be updated with regular operations. This is another important part of engaging those who support your vision.
To share updates, reach out regularly, consider organizing regular investor meetings or special events, create newsletters, and be available to answer questions. The more open you are, the better the relationship will be in the future – driving more investors in the long term.
5. Defend Yourself in Front of Potential Investors
This is truer in investor situations than anywhere else – out of sight is literally out of mind. for this reason, encourage more investors requires work and effort on your part, much of it has to do with staying in front of them as much as possible.
Take the time to learn about the habits and interests of your investors – go to networking events, attend conferences and find other ways to go. When you reach out to potential investors, don’t assume that the lack of feedback or negative feedback will last forever. Instead, take time to follow up, arrange meetings, or get involved. The more you can demonstrate your business acumen and passion, the better.
6. Ask Questions
Taking the time to create a newsletter or call to provide business updates is not always enough. Some investors need encouragement to feel confident enough to provide guidance. It requires a simple step from you: the task of asking questions.
When you have to make an important business decision, consider asking for guidance. Reach out via email or phone call, or better yet, set up a lunch meeting. Take time to explain the situation, to share how much you value your investor’s insight and to ask how they recommend you proceed. This doesn’t mean you have to follow what investors say; however, doing so – if it is in your company’s best interest – is a sign of good faith. Being a willing partner is essential to success.
Encouraging more investors need not be a chore or an insurmountable task. Instead, a few small steps can make a big difference. Consider the ideas above and get started today.