All businesses need investors – and this particularly applies to tech start-ups, who often need more funding than most. Investors can help in many ways, promoting your business in a way that you may not have expected, helping you deliver high-value products and provide exceptional customer experiences.
However, bringing in investors isn’t as easy as it sounds. Investors are putting their money and reputation on the line when they support your company, so you have to ensure both your business and your concepts are understandable and well-presented to look as attractive as possible. Here are just a few ways that you can gain more traction with potential investors.
Be Clear and Confident
It sounds easier than it actually is, but a tech company that can illustrate a clear direction and a market knowledge of the real-world application for it’s products or solutions has more investment potential than one that doesn’t. Before you approach anyone for investment, it is important that you have a full understanding of how to build your early-stage business, the opportunities for your concept or product and the methods you propose to scale production and adapt to different markets. You should outline all this in a clear, concise business plan.
It’s especially important for tech-led businesses to lose the jargon and communicate the benefits in a clear, understandable way, bearing in mind your investors may not have a tech background.
An investor will usually favour investments that look to create lasting change in fast-growing industries, so be confident in your business plan and they will be more likely to hop on board with your ideas.
Sign Up To An Investment Scheme
Having investors is a huge benefit to you as a business owner, but there are also some benefits for the people who invest.
There are plenty of schemes out there that can provide additional benefits to investors. Take, for example, the Growth EIS from Oxford Capital. An Enterprise Investment Scheme investment can provide tax relief for those involved in early-stage investing.
Try To Minimize The Initial Costs
All good business owners are aware that they have to spend money before they make money. The money you spend on R&D and making your product is going to give your investors a good impression of your overall profit margin. If you are putting too much money into manufacturing, this can leave you with small profit gains. Any investor knows that small profit gains mean that this may impact the return seen on their initial investment.
Try to keep your initial running costs as low as possible and your business will look a lot better from the outside.
Approach The Right People
At the end of the day, you are going to seek out an investor because you need all the help that you can get. Of course, the people that know the most about your area of business are going to provide more support than those that don’t.
As such, do your research and look for people that have experience in your field. Approaching a significant investor shows that you are smart, and can lead to a more personal business relationship in the future.
Finding investors is easy if you have put your business on the right path. Take our advice before you look for investors to give yourself the best chance of succeeding.