Deciding to find an investment in a business, you must remember that no one, even the noblest investor, will give you money simply because he liked the idea. What is primarily interested in all those involved in financial investments is their own profit. Therefore, the most important thing in attracting finance is to convince the investor that the investment will bring him a profit.
Many people think that if their idea is unbelievable original, it will provide them with 100% success. This is a typical misconception. In fact, most companies, foundations and private entrepreneurs are doubtful of such projects. They are not interested in your idea. They need a steady income. And stability is provided by proven, familiar areas.
It doesn’t matter how big your business idea is. It is important – how well you will be able to present it, whether you can convince investors of the profitability of the case.
Step 1. A huge role is played here by a business plan. Investors pay attention to it first of all. It must be properly composed, contain the maximum necessary information.
Step 2. It is very important to choose the right form of cooperation that will suit the investor. This form must be indicated in the business plan.
In total there are three main ways how an investor will be able to profit from an investment:
1. Deduction of interest from the amount invested
2. The percentage of the company’s profits;
3. Share in business.
The second option will be the most profitable for you. But investors do not always agree on it. In other matters, this issue is usually discussed with the contributor after the demonstration of the project. If the investor is not tired of the proposed method of cooperation, and he insists on another, it is best to agree to his terms. In business, you need to show perseverance, but not in this matter.
Step 3 . Conversation. Almost everything depends on their success. It is very important to prepare well for them. Prepare a high-quality presentation of your idea. Think about all possible questions that may arise from investors. Make sure that not even the smallest detail of the project is not in doubt.
If you ordered a business plan from a professional, it is best to take it to negotiate as a consultant. He will help you to answer the most tricky questions, as well as be able to explain all the subtleties of the future business. As with most financial services from reputable lenders, you need to give them every reason to show why and how your business is going to be a success.
Of course, it is very important to submit yourself correctly. Intonation with which you speak, and the speed of speech, and your appearance also play a role. Never forget the little things, they are very important in attracting investments.
If negotiations end successfully, you will be offered to sign an agreement. Naturally, it should be read as carefully as possible. Check whether the amount of the investment, the period of cooperation, the rights and obligations of the parties are spelled out in it.