Anyone can read a sales pitch like a well-trained parrot. If you’re going to get investors’ attention, you’ll need to be a bit more strategic. When it comes to the financial top dogs, preparation is everything.
By Craig Falck for Africa Report.
Photograph: © Nyul | Dreamstime.com
1. Be short, sweet and to the point: Nobody likes a presentation that goes on until Generations starts… Explain what your company does, why you’re looking for investors, and why they should invest in your enterprise. Keep it under 60 seconds or risk boring your audience to death.
2. Choose the right audience: This is vital to securing the loan. There’s no point talking to investors who are involved in the industrial sector when your enterprise is in the healthcare and medical field. Do your research and find investors who’ll be able to offer you knowledge as well as financial assistance.
3. Do your homework: And and come fully prepared with numbers. Tell the investors how much you need, what they will get in return, and how it’s going to be distributed within the enterprise. Investors will think twice about giving you their money if you say, “Um, well, I don’t actually know…” when asked what you need their money for. Be up front and tell them that you’ll hire a new advanced technologies team, buy a machine to expand production, or trucks to increase deliveries. Investors deal well with numbers, so give them just that and nothing more. Straight between the eyes works best with financiers. Don’t sugar coat anything.
4. Experience equals trust: Tell investors about your company, who works for you and why it’s a great investment idea. Tell them about your past experiences in the industry or as a business owner, who’s on your team, why you hired them, and what they’ve managed to do so far for the business. A little context goes a long way in building lasting trust in any partnership.
5. Be realistic: Irrespective of whether its figures, calculations or forecasts; if you don’t deliver on your promises or make mistakes, your investors will pull out quicker than you can say, ‘finance’. Show them accurate figures and proof that you’ve consulted professionals to review your proposal and what it entails.
When you sit down with investors, you need to have all your ducks in a row and be as convincing and charismatic as possible. Show them your passion and belief in your brand and you’ll be well on your way to getting their financial support.
