To attract funding businesses, need to be clear about why they exist. Before looking for investors, you need to ask yourself what your business does, what capital your business needs and what the business will do with it and most importantly when will investors see a gain on their investment?
Investors will need to verify your position so make sure that you have a proposal plan, documentation, and evidence to back up your journey. Having a business plan is important when it comes to running your business and it’s also a crucial component when pitching to investors. Assume that an investor will trust what you say but also believe they will authenticate everything.
Investors aren’t interested in reviewing a generic business plan template you found on the internet but rather an authentic and tailored plan that will achieve results.
Your proposal needs to be clear-cut, uncomplicated, and concise. It needs to demonstrate that the business idea is achievable. Outlining and explaining all the fundamental issues in your proposal will ensure that investors will have a good understanding of your business and what you plan to accomplish.
Some of the common challenges that business face are lack of strategic intent and clear initiatives and documentation to support the proposal.
Above everything make sure you conduct your due diligence about an investor before approaching them any investor will be conducting their research on your business once you approach them.
Due diligence manages these business risks by identifying risks in the first instance, characterising and if possible, quantifying such risks and implementing solutions to mitigate the risk.
As you meet with prospective investors, capture their feedback and integrate their ideas into your proposal and pitch deck.
Ultimately, be sincere with your prospective investors. Never overemphasize what you can do in a short period of time but rather put emphasis on what can be done with consistent and incremental progress.