When searching for ways to protect your business and its future, more investment is a fantastic way to ensure that, no matter what happens, you have something to fall back on and support your company. However, gaining (or even earning) this investment is not always straightforward. Many small businesses just like yours are ready for investment opportunities for local or perhaps global venture capitalists.
So, how can you impress investors and ensure they choose your enterprise over all others? Impressing investors can be complicated and it might even be a scary experience. After all, your company’s future could hinge on how impressed they are. If you want an assured chance of success, consider these 13 ways small businesses can impress investors.
Use The Best Technology
Firms that recognize the benefits of technology for their business will always stand out more from the crowd when investors come calling. Utilizing high-end tech that helps your business run smoothly is one of the most appealing points for investors, so they will look at what you do and compare it to other companies in your industry.
Retail companies can use CRM software to manage the plethora of orders while those working in HVAC, electrical, or plumbing can invest in Buildops field service management to make it easier to manage projects and clients in an organized and reliable manner.
However, it isn’t enough to use the best technology if you cannot prove how profitable your business is. While most small businesses can take several years to turn an authentic profit, potential investors will want to see evidence that your business is on the cusp of turning a profit if it has not already done so.
They will not want to put any money into a business that will not provide a substantial and satisfactory return on investment. Therefore, it is in your company’s best interests to be as profitable as possible to attract investors that will help it reach the next level.
Design Exceptional Products
A business will not survive without designing exceptional products or services. You should already have an impressive product, which is why your business has become so successful already. However, you cannot rest on your laurels. If you want to take your business further, you need to expand your product or service options.
These exceptional products or services can help maintain interest in your company. If you do not evolve, there is a risk that you will serve everyone possible. If your product is a one-and-done purchase, this puts your company at risk and will make it difficult to survive.
Highlight Your Business Plan
You should already have a business plan, but it’s worth reviewing and improving it to appeal more to investors. Ideally, your business will have followed a similar path to the one outlined in your original plan, but if not, you may be able to amend it to better match your current situation.
When working on your business plan, it’s important to remember the Three C’s of a good business plan that will make your outline stand out and ensure you sell it as well as you possibly can. There’s no point in being humble or modest when seeking investment, so if you have big dreams, you should make a point to talk about them.
Work On Your Elevator Pitch
Despite this, your business plan may not be of any use if you do not perfect your elevator pitch. You should know what this is already, but if not, your elevator pitch is selling your business ideas in a minute.
Investors will want to get a quick and concise idea about what your business does and why they should invest. If you can make your company sound as impressive as possible during this pitch, you vastly increase your chances of gaining the investment you need.
Show Off What You’ve Achieved
You should never be too modest about your achievements in your industry and showing off these achievements could be the difference between receiving investment and being passed over in favor of another company. Establishing a portfolio website with testimonials from satisfied clients and examples of successful projects is a must, but you don’t have to stop there.
Good reviews on Google and other websites will show that you have legitimate quality. Likewise, any awards you may have won during your business’ existence will further prove to investors that your business has the potential to be much more than it is already, which may inspire them to pump money into your company.
Improve Your Leadership Skills
As your company grows, you will need to lead more employees and present yourself as a figurehead for your business. While you might think you have leadership skills in abundance, overseeing tens and even hundreds of employees is very different from your current situation.
Therefore, investors may want to see you improve your leadership skills. They may want you to take courses that will prepare you for the growth your company is about to experience to ensure you’re capable of handling it. If not, they might even request that other people, typically outsiders, are given responsibilities, and this might end up with your business becoming something that you do not recognize.
Cultivate A Positive Environment
A positive environment will always make your business more appealing. This applies to both customers and investors. Customers want to see that people enjoy working for you, while investors are happy to put money into a brand that seems like it is on the up and has plenty of goodwill with the public as well as internally.
You already know how vital a positive environment is, yet some employees can get spooked when rumors of investment start floating around. They may worry that their job is under threat or that there will be too many sweeping changes. Do your best to erase concerns and be transparent about the process.
Prepare Employees For More Responsibilities
Once the investment comes through, existing employees may be required to take on more responsibility. These tasks could uncle training new employees or even acting as ambassadors for the brand.
Preparing your team for this will ensure they are not blindsided and can take steps to learn how to be senior members of the team. They may want to take management courses or shadow you to prepare for the changes.
Be Aware Of Potential Problems
Despite all the positivity surrounding potential investment, your business will also come under the microscope. Investors will study your business and pick apart any issues they deem lacking. This could include issues surrounding growth and scaling that may impact how your company proceeds.
It helps to understand these problems and, once you’re aware of them, outline ways you can overcome them should any problems arise. Not only does this demonstrate a proactive approach to running a business, but it also shows you accept that the company is not perfect and you are aware that there is room for improvement.
Make Your Brand Recognizable
All brands should strive to be recognizable in the same way that Nike or Apple are. You should get to the point when consumers can identify your business by the logo or, in some cases, even by the color scheme or ad design. Your investors will help you put more money into marketing, but you can also take steps to achieve this beforehand.
Standing out from the crowds is vital for all businesses, so take the time to make your company as recognizable as possible. Find something that gives you the edge over competitors and make the most of this to ensure easy recognition.
Be Willing to Accept Advice
Your investors will have several recommendations to help your company reach the next level. This is an important crossroads for your company. Some business owners are unwilling to take advice even if it is in their best interests. The e entrepreneurs that accept advice (or at the very least compromise on some advice) will have a greater chance of success.
Although some advice may seem like it doesn’t match your desires or vision for the brand, the investors’ experience still means you should listen to what they have to say. Otherwise, they may not see you as a company worth investing in.
Realism is always important in business. As vital as ambition is, you cannot expect too much of your small business. Understanding that you will not topple the biggest corporations in a few years will demonstrate your ability to be realistic. Instead, you can set goals that gradually increase your company’s standing. While there is nothing to say that you won’t emerge as the top dog in a decade, although this still relies on luck, you should stay in your lane for now.
Impressing investors is easier said than done, especially since they often have much more experience in your industry than you do. Because of this, they’ll have seen it all they know what works and what does not work. If you can predict their expectations and match or exceed them, your company will be in an excellent position to receive investment that will help you take the business to the next level and carve a solid and respectable niche within your industry.