Small businesses often need to rely on investors or other outside sources of money to continue to fund their vision and grow. Here are some things to keep in mind when applying for and presenting to potential investors:
#1 Show your passion for your project
Rather than focusing on profits or money, investors like to see that the leader of the business genuinely believes in the mission of the group. Investors trust that those who care about the success of the company not because of the money but because of the work itself will be able to pull through conflicts and rough times that may arise in the future.
#2 The people on your team are important
Investors understand that the company is only as strong as its weakest link. It is important to have a team behind you that consists of strong and capable individuals. Finding people with deep industry knowledge will be key in convincing investors that your company has the potential to be profitable.
#3 Keep involved with your finances
While it is recommended that small businesses hire professionals, such as an accountant, to manage their finances it is also important that the owner does not ignore these finances. By updating yourself monthly on your company’s financial standing, you will have a better understanding of what to speak about when meeting with a potential investor.
#4 Don’t be afraid of zero
Instead of seeing a zero on a financial statement as something to hide, see it as a potential place to grow. Often times, it is easier to gain from zero than it is from a small positive number.
#5 Choose investors wisely
When deciding which investors to work with or seek out, keep in the mind that the most important thing to your business is your mission. Find an investor who can align themselves with your purpose rather than your profits. This will create a better relationship between you and the investor and will help your business succeed.
As a small business it can be difficult to get people with the means to support your endeavors onto your side. By following these key items you can increase your chances of obtaining the funding you need to help your company grow!
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Budget Mastermind provides business finance solutions to help grow businesses. If interested in our services, visit our website at www.budgetmastermind.com