Business meeting

Top tips to attract investment

There are many reasons why you may need investment in your company, like replacing outdated or old equipment, relocating to larger premises or funding growth. It can be difficult to secure the investment which you require, especially if you haven’t been trading long or have had financial problems. There are a number of things you can do to make your business more attractive to investors.

Preparation

Thoroughly prepare for the questions which a potential investor may ask about your company. Prepare reports so that you have all the required figures to hand. Your management accountants will have produced documents which contain the necessary data and will also contain projections and forecasts which any investor will want to see.

Create a business plan

Make sure your business plan is realistic so that potential investors develop an initial interest. The executive summary should contain all the main points of the business plan, with key figures and points which will capture the attention of the investor. If the plan is compelling, the investor may want to read more but if you don’t include information which draws them in, you won’t have any interest in investing in the business.

Be professional

Always conduct research into any potential investor to discover why they have an interest in your business. Be polite, confident and knowledgeable about your business so that the source of investment has confidence in your ability to run a successful enterprise. Most investors will need to feel that they can approach you, as well as trust your abilities before they feel they can put capital into your company.

How much will you be asking for?

When you are calculating the amount of investment be realistic, as an investor won’t be impressed if you need to ask for more money further down the line. Draw up a report of why you require investment, how much you require and how it will be invested. Make sure that you are clear about how and when the investor will be repaid, so that area aware of how long the investment will be required.

Weak areas

If you have weak areas of the company, be honest about them and put a plan of action in place to tackle them. Anyone who is willing to invest in a company will want to know everything about it, rather than risk losing their investment.

A company which is well managed is often seen as a secure prospect. If you would like to discuss investment with us, contact us today to arrange an informal chat.