When you have decided to enter the world of private equity, financing and/or investment, you must be aware that not all investors are alike. As such, no matter what industry you are in, you need to have a strategy to bring the attention of potential funding sources. However, the most important issue is getting the attention of an investor before they decide to invest. Here is a brief overview of how you can approach potential private investors.
The best way to start is to create a professional business plan. Whether you are a seasoned business owner or an individual investor, a well-written business plan will likely garner interest and may even obtain a meeting with an angel investor or venture capital firm. In addition to your business plan, you will want to include other documents, such as a 100-page executive summary, an operating agreement, copies of your financial statements and a patent registration or related application. You will also want to arrange for a business presentation, if possible, to highlight your unique qualities and offerings to potential funding sources.
Once you have compiled a professional business plan and other documents, you will need to attract interest from prospective investors. A presentation will allow you to explain the unique qualities of your business and why it is different from other businesses in the industry. This will give you the opportunity to convince potential investors that you are the perfect candidate to provide them with capital. You will also need to make a personal connection with each investor. For example, you will want to present a professional image, which means having a sharp, clean, professional appearance and dressing appropriately.
One way to generate interest is to focus on a specific segment of the market and showcase a product or service that complements that segment. For example, if you provide cleaning services, you will want to highlight that quality, superior service, and reputation as a reliable company for cleaning. Another method would be to provide services related to the construction industry, such as handicapping. Your goal could be to obtain a construction job, which is a great source of investment capital.
To increase your chances of obtaining a loan from a private investor, you will want to make an appealing business plan. A business plan is a written outline of how your business will operate and provide a clear description of the products and services you plan to offer to clients. Your plan will likely be reviewed by several people, including potential investors, banks, and other lending institutions. Reviewing the plan, they may decide to offer you a small-business loan with favorable terms, or pass you along to another investor. You can work closely with the banker to tailor your loan to the needs of your financial situation and market, and to include the features that you are looking for in order to get investor attention.
Another way to attract investor interest is to offer free consultations. Find an area of the business that you are not familiar with and make an appointment to see if you can draw potential investors in. Although the session may be brief, they are usually filled with information on the business and the products and services you plan to offer. After the consultation, it may be possible to arrange a free seminar to meet with several investors during the day, in order to discuss the business and how they can help you expand your business. Investors generally have better interest in small businesses, which often require less initial start-up capital and more long-term success for the owner.