What investors are looking for

1. Get to the point

Remember, short and sweet is the best way forward. An elevator pitch is vital when presenting to investors. Imagine you were on a panel of investors, who would grab your attention? Someone who takes you through the painstaking detail step by step by step for hours on end, or someone who gives you the highlights of your planned business growth - exactly what you need to know?

Long winded presentations and lengthy explanations do not impress investors. Prepare an executive summary and present your business in a manner that will appeal, namely short and to the point. If you want someone to invest in your business they want to know that your customers and clients will understand your concept in a short period of time. If you cannot convey your idea to an investor in a short time span how, they will think, will you be able to convey it to your clients?

2. Facts, facts and more facts

We've all seen Dragon's Den. Have you worked out what they are looking for? Facts, facts and more facts. Investors are looking for low-risk businesses run by a team with proven management skills. They want a guaranteed return on their investments. What they are not looking for is the biggest work of fiction since Anna Karenina. Don't go into your presentation with figures plucked out of the air or quoting potential huge returns in the first year when you haven't even started your business. It will not breed confidence in your investors. A company with customers, a track record and real world experience will always have a better chance of finding investors than a pie in the sky dreamer.

3. Save the hype

Building on the above point, by all means get your investors excited about your company but avoid over-hyping your company's figures or potential. Seasoned investors will not take you seriously if you present them with outrageous projections. Present a balanced picture and show your investors you have a grip on reality by presenting them with three different versions of your business plan; the best case scenario, a middle of the road version and then the worst case. Base these on facts, historical and present performance data, competitor analysis and then a series of assumptions that you can explain in a logical and rational manner.

You will do yourself no favours if you rock up expecting to walk away with a large investment when you have presented just one over-optimistic picture.

4. Be Prudent

Make no mistake, we are in difficult times, so showing how responsible you can be in managing and growing your company is essential. Present a prudent budget. You can allow yourself some room for manoeuvre, but avoid over-egging in the hope that you will get away with it. Investors know exactly what it takes to run and grow a business, be it a start up, post start up or a growing company. Avoid awarding yourself or your team large salaries. Investors are not going to pay for you to have an excessive life style, it's a turn off. They want to invest in your company, not your next house.

Investors will also want to see that you are investing in your own business. Not being prepared to invest yourself is again a no no to investors. Why would they invest if you're not prepared too?

5. Walk before you can run

The amount of companies we meet where the owners are talking about global domination before they have even started a business is truly unbelievable. You need to prove that you can run and grow one business, sell one product or service your existing clients before you approach investors for a chunk of money.

Prove that you can walk before you run. Investors want to see a scaleable model where you can repeat your success time and time again. Microsoft didn't start off with a range of products. They perfected what they knew step by step. You need to do the same.

6. It's a team effort

You don't have to know everything about growing your business yourself. The trick is to surround yourself with people who either know more than you or ideally, complement your skill set. Investors are looking at you and your team, so consider yourself as a package and make sure that package is the best that it can be and is one that is going to drive and grow your business and make you highly investable.

To discover how Incisive Edge will help you grow your business email growth@incisive-edge.com or call 0843 289 7884.