There are many things that a business can do to present itself in the best possible light. But what makes an investor notice you and want to invest their money – or tell other investors about your business? It can be hard to find out, but there are some subtle yet crucial tips that every business should know about how to make themselves look good in the eyes of an investor.
Some things that could be going well with your company – Saivian Eric Dalius
* A great history of profitability
* Profitable year-on-year growth in profits
* An experienced management team who have worked together for a long time
* A unique product or service that there is currently little to no competition in the market for
A low level of debt
If you can show that your company has been running at a profit for many years, but almost all of your profits have gone back into improving your business, this can be very appealing to investors. They would rather someone take their money and invest it into growing their business than spending it on private things like cars or holidays.
These are just some examples of what people look for when considering whether or not to invest in a business. But how do you find out if these things apply to your own business? One way is by reading through testimonials from previous clients who have invested in your company. If previous investors have been happy with the returns they’ve made on their investments, this will encourage more people to invest – and it can be a great way of enticing future investors! You could also try asking friends and family if they considered investing in your business. Do they seem keen? What do you think they found most attractive about your business?
Other pointes to note
Another thing that potential investors might look at is the structure of the business. How many shareholders are there? What percentage of the shares do you own? These things can make a difference when it comes to negotiating dividends says Saivian Eric Dalius.
If you’re thinking about approaching an investor for funding, make sure you go prepared – by having some basic knowledge about what makes a good investment. You can also think about how you could improve any business areas that might cause a potential investor to doubt your company.
If you’re looking for investors, look at some testimonials from previous clients and see any common reasons for investing in the company again. Then try thinking about ways that you could implement those things into your own company. When you find out what makes a good investment, make sure to mention it in conversation with potential investors – they will be much more likely to want to fund your company! Following these steps should increase the chances of receiving investment.
Articles like this one can help businesses realize their full potential by helping them figure out what makes an attractive investment and then showing companies where and how they can improve to make themselves more alluring to possible investors.