Here’s 5 Ways To Get Investors To Invest In Your Product Or Service

Here’s 5 Ways To Get Investors To Invest In Your Product Or Service

January 3, 2019 How To Guides 0


If you are planning on expanding your business, a thought of getting a bank loan might have crossed your mind.

However, this might be limited by the fact that either the business does not have a credit history to access the required amount or you simply don’t want to get into debt at this point and time.

Getting the right investor for your product or service gives you an added advantage since you also get the networks and exposure in the industry.

You can also benefit by learning business skills that will enables you expand your production and operations which translates into increased revenues.

When trying to get an investor, you need to present your proposal in a clear and precise manner since you may just have one chance to do it.

Here are some tips on How to Persuade people to invest in your product or service.

1. Have a clear strategy

Have a well laid down strategy on how you plan to grow your business. Indicate how you intend on executing the strategy, the means needed and finally the expected input the investor will have.

An investors will only buy into something that he or she feel can be actualized. Make the presentation short but include all the important details including the resources needed, the time frame and the expected returns.

Having a business that is operational is an added advantage since you can use the already existing facts and figures.

2. Do not overvalue your business

Most people are tempted to give higher figures to the potential investors hoping to get a better deal or simply to convince the investor that the company is valuable.

Investors are able to tell the real worth of your business through figures you have presented. Be honest and sell the potential of your product or service and if you have a good strategy, a willing investor will grow with you.

3. Explain how you intend to use the investment you are looking for

Make your priorities clear and make sure the allocation for each spending is reasonable. Investors usually evaluate the figures to make sure that everything adds up and used for the intended purpose.

4. Be clear on the ROI

Investors are keen on how they benefit from investing in your product or service. Focus on how and when the business will recover the money invested and how much the investor will make from the profits made.

This may be a percentage of their equity in the business or agreeable periodic payment.

5. Be realistic

It’s great to have big dreams but you need to keep it to what is possible. The investors are knowledgeable about the trends in the market and some figures and projected growth will just make them feel like you don’t know what you are talking about.

Lay down the current challenges and expected future challenges that will come with growth. It’s important also to compare your competition and the strategy to top your competitors.

Finally, it’s important to note that investors are not only keen on buying into your business, but they are also interested to know the personality of the person they are investing in.

You might have a great product or service and a perfect strategy but your attitude may make the investor feel that you might not be easy to work with which can be frustrating.

Mark Bailey

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