Capital is the most vital aspect of a business, including SMEs. Without money, SMEs can’t grow their business. Therefore, SMEs need to find an investor. If you are currently looking for an investor, then this article can help you to find investors for your SMEs.
The thing is, there are plenty of investors out there that ready to invest their money for your business. The problem is only a handful of SMEs that understand how to find investors. But worries not! Here are some tips for you to find one as soon as possible:
How to find investors for SME
Looking for an investor is quite challenging because most people don’t have the necessary information for it. In this article, we will guide you to prepare your self and your business to find an investor.
Find investors that suit your business model
Before sending your business proposal to a potential investor, it’s wise to do some research first about the investor. Some investors are interested in funding SMEs in the tourism sector, while others are only willing to invest in retail-based SMEs.
You might want to look for information about the investor’s previous fundings. Are the previously funded companies working on the same field as your business? If yes, then you can go for the next preparation.
Make an impressive proposal
The next step to look for investors for your business is preparing your business profile. You don’t have to put too much information on the proposal. You only have to make sure the thing you want to convey is easy to understand and concise.
There are a few things you can put into your proposal. You can start from your business background, what kind of product or services you offer for the customers, and what makes you better than your competitors. Don’t forget to let the investor know the potential risks of your business.
You can also state the estimated fund you need along with the allocation of that funds. You can try to explain how your business will grow in the next five years and how will their funding can help your business tremendously.
Create a comprehensive financial report
A financial report is one of the deciding factors whether the investor wants to help your business or not. If you are unable to manage the company’s finance, how will your investor want to give their money to you willingly? Therefore, make sure your financial report is using a clear and concise format.
Using accounting software is the best solution to make a better financial report. It can also help you convince the investor that they invest their money in the right company.
Convince the investor through a solid presentation
Sending the proposal to the investor is the first step. You also have to present it in front of your investor. More often than not, a solid presentation can determine whether the investors are willing to invest in your company or not.
Prepare a simple presentation slide. Avoid using too many words in it, instead, display graphics or tables that are easier to understand. Show that you have a strong commitment to developing the business and are ready to be responsible for the funds from investors.
Finding investors is not an easy thing to do. Sometimes we have prepared the best proposal, and the presentation goes well. But there are times when investors are not interested in your business.
Do not be discouraged! Continue to make improvements in your proposal, financial report, and your presentation method. Keep on improving and improving it until you get investors for your business. Good luck!