Blogging Heros
When you are looking for potential stakeholders to fund your business’ development initiatives, you have to make a great impression. Experienced venture capital firms and individual investors tend to be extremely picky about who they give funding to, and with good reason. They take on a considerable level of risk when they invest capital into up-and-coming companies. Compared with other investment opportunities, there is a lot of foreseeable downside that they have to protect themselves against. Here are some of the most important things that you need to do to allay investors’ concerns and gain their trust.
Craft a Comprehensive Business Plan
Writing a formal business plan gives you a way to present a compelling narrative to your investors. A business plan can outline your operations, describe your organizational hierarchy, and identify clear, growth-oriented objectives. Think of it like a playbook. It’s a referential resource, but it also shows potential investors that you have a methodical, purposeful strategy to achieve long-term profitability.
To give your business plan authoritative credibility, be sure to utilize substantive information about your industry that incorporates recent trends in demand. Cite business statistics from reliable sources, and use them to give your objectives meaningful context. By showcasing your command of your industry and your target customer base, you can persuade funders that you have well-informed insights and you’ve really thought your development strategy through.
Explain Your Sales Process
Investors want to know that you have something great to sell people and that there is a strong demand for it, but they also want to know that you have a solid sales process to get it done. Establishing a proven sales strategy shows funders that you and your sales team have a formulaic but readily adaptable process to close deals.
Apart from satisfying formalities, the sales process that you use has a lot of practical utility. Developing a process and implementing standards for customer relationship management will ultimately equip your salespeople to convert more leads to sales and generate more revenue.
Design a First-Rate Website
Your business’ website is the foundation that supports your company’s profile online, and the quality of its design is integral to the success of all of your digital marketing directives. When deciding whether to back a company, the company’s website is going to be one of the first things that investors look at. If there are any issues with speed or performance, it might create the perception that you aren’t managing your operations well.
Using a template may be a good way to optimize speed and functionality. It’s also less costly than doing everything from scratch. Use high-quality imagery, and devise an intuitive layout and easily navigable interface.
Build Credit
Creditworthiness could be the make-or-break factor that drives a funder’s decision about whether to invest in your business. Check your credit score regularly to maintain a clear view of where you stand.
Make a concerted effort to keep your score moving in the right direction by moderating your utilization of credit. Using too much credit at once is a sign of poor cash management practices, and it could put you in the position of having to spend too much of your available cash flow on interest payments rather than expenditures that are going to impart practical benefits. In addition, your report has to reflect that you’re able to pay creditors on time. Make timely payments on every active tradeline. Lastly, try to limit the number of hard inquiries on your company’s credit report.
Differentiate Your Company From Competitors
If there is an abundance of competition in your field, you have to be especially attentive to conveying what sets your company apart. Showing investors why they should align themselves with your companies rather than competing enterprises will make the prospect of working with you more enticing.
In considering how to distinguish your growing company and underscore what makes you unique, highlight what you can offer people that other vendors or service providers can’t. This could be a discussion of product design qualities that are superior to traditional products, an examination of your customer service provision, or a forward-thinking mission statement conveying a strong emphasis on industry leadership.
To win investors’ confidence, you have to project a positive, professional image. You also have to convince them of your business acumen and demonstrate your ability to generate consistent, healthy revenue.
