« Back to Home

How To Attract Investors

Posted on

How To Attract Investors

Every company needs funding to either get off the ground or expand. Often, that funding comes from banks and loans. But substantial expansion requires corporate investors who must be persuaded to spend their money for an ownership stake and future returns in your company. Here are some ways to convince corporate investors to invest in your company, no matter how small or niche it may be.

One critical way to attract corporate investors is chart your corporate momentum. Investors are most interested in where your company is going, not what it has already done. Make sure to emphasize the opportunities that your company has and the ways its trajectory will lead to more growth. Your investors will want to see the ways in which the current climate helps predict more of a return on their investment, and it is up to you to connect the dots.

Another way to attract corporate investors is through emphasizing growth potential. Most investors do not want to invest in a small company that has no ambitions. They want to maximize their return and make sure that their investment will pay off at the highest level. It is up to the company to convince these investors that it has no ceiling. While the company does not need to argue that they will go from one location to 100 in the span of a year, they do need to show that their growth model can continue indefinitely with a sizable investment. Only then will they be able to attract the vast majority of corporate investors.

Yet another approach is by displaying the effectiveness of your management team. You want to show that you are a competent business leader who will put their funds to good use making more money that will eventually lead to returns. Use your past experience and a detailed plan to instill confidence in possible investors. If possible, talk about positive returns from other investments that were put under the care of you or your company. You want to use every tool and experience you have to convince an investor to part with their money for a short period of time.

If at first you do not succeed with a corporate investor, do not give up. Some corporate investors have extremely specific parameters that they will invest in and will ignore any opportunity that does not fit those parameters. Keep trying, asking for feedback, and honing your message. Eventually, you may take those skills and turn them into a corporate investment that allows your business to thrive.