7 steps to attract the investments for your business
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Investments are not only small payments from a private person in certain assets but also the engine of the modern economy. It is the foundation on which the entire business stands at the moment. More than 90% of all enterprises need additional sources of financing. Regardless of the volume, turnover, scope, and direction of activity, funding is important. Both individuals and other companies can send investments.
Why Are Investments Important?
The company needs money at any stage, especially if it is not even legally registered yet. It is thanks to either borrowed funds or investments that most of the enterprises start their activities.
After all, the new source allows to:
- Grow and develop, do not hold back in the formation of a financial strategy.
- Increase the turnover, quantity, and quality of products.
- Open spheres
- Acquire subsidiaries or a completely new startup.
- To master the horizons in geographic terms, cities and for the creation of branches.
Whatever the initial capital, no matter how great things are, you can always do better.
Instructions to Attract Investors
For clarity of the solution, we will form a small step-by-step algorithm. In it, we will write down in detail what actions need to be taken, and from which it is better to refrain.
Step 1 – Looking for A Source Of Investment
Of course, our plan should start with this task. Various platforms are suitable for their solution. You can organize crowdfunding, which has now become very popular. This is how most projects often work.
It is worth turning to mass media, advertising platforms, from YouTube to social networks. Look for new connections, develop in the field. Alternatively, use the services of professionals for reputation management and promotion.
Step 2 – Provide Summary of The Project
To some extent, this is a commercial offer. However, it is not aimed at the benefit of the client, but the attractiveness of the project. This is exactly how the experts will evaluate profit themselves.
It would help if you showed how good the idea is: how are you going to act, what are the goals and objectives at this stage. Share the prospects for the future, team composition, and established points of contact. And of course, a detailed business plan.
Step 3 – Choosing A Trustworthy Partner
It is always worth choosing not the most profitable, so to speak, but reliable. The same is the case with deposits. Those who have not lost their deposit in the first months of work know this simple truth. Make sure it is reliable.
Step 4 – Dividend Form
Determine what exactly the person or company will get in the end. Determine whether it will be a cash profit or a share of the entire project. Also, check whether the amount of dividends is calculated from the income of the enterprise or the amount of invested funds. There are many nuances; everything will have to be calculated scrupulously.
Step 5 – Delivering Information to the Target Audience
Define communication channels in advance. You can use several at once. The main thing is to present information most vividly, in a way where the project will look great. You can use press release distribution to reach the targeted audience. But without outright lies, otherwise, the reputation will suffer.
Step 6 – Negotiating
The speech for negotiation should be confident, clear, polite, and adamant. Stand your ground, voice the conditions in such a way as to show their convenience and profitability for the partner. But do not make all concessions in order not to lose the depositor.
Sometimes it would be more logical to refuse. During the negotiations, tell the investor what you want. Until the last word, do not look for an excuse to insert information, highlight all the points. This is what every student gets in a business institute in the initial studies.
Step 7 – Concluding the Contract
This is the final stage. You can safely put your signature on the paper, but only if you carefully read all the essential conditions. Take all the time; see all the clauses of the contract before signing the contract.
Conclusion
Attracting investment is an important procedure for any enterprise. Regardless of what stage of development the company is at. It’s never too late to expand, and it’s never too early either. Even if you have a reliable partner, keep looking for the next.
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