How to Impress Your Potential Investors
Whether you’re growing your small business or getting serious about a startup, you might need the help of an investor to get things rolling. Use these tips to impress potential investors and win their support.
Simplify What You Do
David Hulston, a seasoned angel investor with more than 30 years of experience, told Dan Martin in
an interview with Business Zone that business owners looking for new investors should be able to articulate what their business does in a few simple words. Hulston asks, “Can you describe what you do in a tweet?” Paint a picture, a simple and easy-to-understand picture, of what you do and use it all the time so that others can better understand your business.
Fine-Tune Your Business Model
If you’re thinking “What business model?” you need to get to work, stat. Most investors won’t even consider investing in a company that lacks a clear and concise business model. Your business model should be as detailed as possible, and include points of growth and how you plan to grow your company, as investors are not looking for a complacent business to invest in. Get started with an online tool like Business Model Fiddle. The free business model canvas allows users to create and share business models with anyone, from the company team to investors. And the minimalistic tool is compatible on both iOS and Android devices, so you can work how you want, whenever you want.
Dress the Part
We might not all admit it at first, but we all make quick snap judgments about other people’s outward appearance. A study conducted by researches in Turkey and the U.K. of 300 participants found that the clothing we wear influences the type of impressions we make. The study allowed participants to look at a photo for just three seconds of a man wearing a well-tailored suit and then of a man in a not-so-well-kept suit. Of course, people judged the man in the well-tailored suit more favorably, citing that he must be more confident, flexible, successful and a higher-earner than the man in the other photo.
So, what can you learn from this study to impress a potential investor? What you wear matters. And to win over your investors you must look the part. Dress in tailored clothing and add a statement accessory to your look, like an Apple smartwatch for men or a designer Coach crossbody bag for women. Both accessories show that you take pride in your investors and they might just help you win their support.
Know Your Numbers
Not only are investors looking at your business because they believe in your vision, they are investing in your business to make money. Knowing your numbers might just be the most important factor in winning support from eager investors. However, having promising margins alone is not enough. To really win their attention, presenting your numbers in a visually pleasing and also professional manner is the best way to impress investors.
Put the Team First
Lots of ideas look good on paper. However, without the right people, that great idea can quickly fall flat. There’s no better way to show that your business rivals its competitors than having the right team in place to get the work done. Investors often look at the team behind the investment opportunity. And it helps if your team is both knowledgeable and passionate about the work that they do. Hiring the right people and developing them as your company grows will show investors that your team is the best in the business.
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