How to Attract Small Business Investors 101
Category: Funding Business | Growing Business
October 1, 2020

Attracting investors to your startup can either be the hardest or easiest part of building a new business, and the way you navigate and communicate with potential investors can make all the difference in whether your dream succeeds. 

Although the process can feel intimidating for new entrepreneurs, there are a variety of strategies that can help you attract the right investors to get your business off the ground. 

Invest IAn idea 

The biggest and potentially most important way to attract investors is to invest in your own idea 

Taking the time to thoroughly research and prepare a comprehensive business plan is a great was to show investors you are also committed to the venture 

Be sure to spend time fully understanding the ins and outs of your new business: Who is your target market? How will the company be structured? What is your product? How will you market it? What are our financial projections?  

Make sure your idea is unique and serves a need, but also that there is proof this type of business can be successful.  

If there is no proof, you will need to draft a convincing argument (a pitch deck) of why your business will succeedIt will be clear to investors whether you put in the effort when you meet. (Check out some pitch deck templates here.) 

Don’t Be Afraid To Ask Questions 

Have you ever heard the phrase, “There is no such thing as a stupid question?” This phrase rings true when starting a new business.  

If you keep getting rejected by investors, start asking those same investors what you can do to gauge their interest.  

Although they may not come out and say what they would like improved, the fix may be as simple as changing the name or adjusting your market 

In the same sense, ask advice from other entrepreneurs as well. The more you know, the more you can grow, and in return, so do the investors. 

Show Tangible Results 

Maybe your business is already successful, but you are looking to take it to the next level. This next step may also require outside funding.  

Lay out your successes and numbers for investors in an easy to understand format. Show them what has been working and for what hasn’t, and don’t be afraid to ask for their feedback or advice 

For an investor, a great idea isn’t always good enough; there needs to be proof of successful entrepreneurship before they are willing to take a risk and cut you a check. 

Invest IA Partner 

Attracting an investor is not always about just money. Asking investors advice, including them in team meetings, and allowing them to be a part of the decision-making process can make a world of difference.  

Investors shouldn’t just be considered an ATM; they are often a resource that can help your company grow and improve processes. An investment should be more than just a monetary transaction. 

Hire The Right People 

If you are at your wits end and cannot successfully find a way to attract investors, it may be time to look for outside help: Hire a professional to help navigate investors.  

As a business owneryou may not have the time or energy to put the whole world on your shoulders. Find a partner you trust to help manage the parts of the business that may not be in your wheelhouse, which can include finding outside funding. 

Bridgeford is here to help your business succeedBrit Young is not only a lawyer, but also a successful entrepreneur himself who has dedicated his practice to helping other entrepreneurs navigate their journey! 

Contact us today for a free consultation to see how we can help attract investors for your business or startup today. 

Ready To Talk?

Request a consultation with Bridgeford today.

Share This