How to attract and convince investors?

How to attract and convince investors?

Everyone has ideas or projects in mind, but building them, marketing them, making them profitable and developing them with the goal of starting a business is a much more difficult thing. The entrepreneur who launches must then collect a certain amount of funding in order to be able to realize his dream. Still, attracting and persuading investors, whether they are natural persons such as Business Angels and Family offices or even investment funds, is not easy. Here are some essential tips to put the odds in your favor and captivate your audience.

According to data published last April by France Invest (former AFIC, the association of investors for growth, editor’s note) in partnership with Grant Thorntonle (international audit and financial advisory group, editor’s note), the capital investment in France, both in terms of fundraising and operations. In 2020, French private equity and infrastructure players have invested € 23.1 billion in nearly 2,150 companies and infrastructure projects. they have raised € 23.5 billion from investors, a third of whom are of international origin, and this despite a complex health context. These amounts will be invested over the next 5 years.

With this, companies have been able to develop, invest in large-scale projects and increase their workforce. Investors are an essential lever for your firm, find out how to convince them.

Create a clear and concise business plan

A real business card for your business plan, the business plan should not be neglected and is essential. Essential to the understanding of the concept by investors and by other partners such as bankers or associates, it must be carried out with clarity and conciseness. An element of work and communication, it must contain all the elements that demonstrate that your project has great potential. The document should also answer key questions regarding target customers, the composition of the management team, knowledge of the competition or the period of profitability. With the business plan itself, a abstract, a kind of summary of the file in one page, must be introduced, supplemented by tables of financial statements on the income statements, the treasury plans or the fixed costs. It is important to cite the sources for the information you have disclosed. It will thus be necessary to insist on the rate of growth, on the costs of acquisition, on your market study, on your commercial strategy or on the inventory of the necessary resources whether they are human or material. They will be more seduced by a demonstration and an in-depth and detailed analysis of a few figures, rather than a heap of data. In order to answer questions as quickly as possible, master each element of your business plan perfectly, in order to show your seriousness.

Pitcher your business

The ground presentation is a fundamental element that allows you to expose your project face to face but in a very short way. Now is the time for you to convince the interlocutor or the audience of your potential, which is likely to give you additional resources to embark on the entrepreneurial adventure. It must then be prepared with meticulousness and must leave no room for improvisation. With the help of your relatives or collaborators who will play the role of investors, you can prepare yourself by presenting your speech and asking them for their opinions and criticisms on your service as well as questions related to your project. A way to anticipate and organize in advance appropriate responses, because possible investors will try to destabilize you to verify the reliability of your project. Set yourself several goals to develop your pitch. First, by showing clarity and simplicity. An audience’s attention can easily dwindle in seconds, and the use of complicated words can prevent them from clearly following you. It is therefore essential to make a short presentation of 30 seconds to 5 minutes maximum, using simple but effective words. Also show passion and take care of your attitude. Someone who is enthusiastic, dynamic and motivated will have a much better chance of attracting investors because they will mark the spirits rather than a shy person, anxious to speak. A striking catchphrase from the start of your pitch that sums up the essentials of your project and a rhythmic storytelling will arouse the curiosity of your audience.

Share your project with the general public

Testing your product or service concept with the general public, through social networks or via crowdfunding platforms such as Ulule, KissKissBankBank, Kickstarter or Wiseed can be useful. This is an opportunity to win over potential customers and, in the event of success, to arouse word of mouth and the interest of several personalities. By creating a kind of community, investors will be more convinced by your project and you will be able to present them with a targeted population of your market. Entrepreneurship-related events and fairs are also important places to share your project and, depending on comments, to modify or improve it. You will have the opportunity to see live the reaction of people to your service or product. It’s also a great way to meet investors who may not be interested in your business, but who have a network and address book that people are likely to invest in.

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