Whether you are a startup business or a larger enterprise, now and then companies of all shapes, sizes and niches need a cash injection to kick-start sales and marketing activities once more. But in a recovering economy, investors are understandably cautious about how and where their funds are spent.

Presenting yourself as a great investment opportunity however, may be more difficult than you first anticipate, and with more and more companies looking for financial backing, you’ll be up against some tough competition. Take a look at our top tips for attracting investors to your fledgling or established business, and get the capital you need to thrive!

Demonstrate why your customers need YOU

In addition to great profit margins and a venture built on an excellent foundation of teamwork and passion, investors are particularly interested in companies that cater to a specific gap in the market. Whether you are just starting out or have been in the market for a while, the ability to demonstrate why your customers need your particular products or service can work wonders for attracting both long and short term venture capital investors.

Make your customer base a key part of your business plan and funding proposal by understanding why your core demographic need you. Identify your gap in the market and fully disclose why your product or service offers a valuable and affordable solution to their requirements.

Show off your biggest asset – your team

For the majority of investors, they are not investing in your products or service, they’re investing in you and your team so show prospective partners that you’re worth financing. The following qualities are all on the hit list of big and small investors, focus on displaying these not just in your business plan but in your everyday dynamic, wider company ethos and in person.
It’s important to ensure you and your teams are working together in order to achieve successful results.

Tenacity – staying power is an absolute requirement and in many industries it can be difficult to succeed. Investors want to fund companies that are in it for the long haul and are all too willing to adapt to changing environments, and reach and retain their position as market leader.

Enthusiasm – portraying your and your team’s passion for your product or service is a must, and can make or break funding success.

Alliance – how you work as a team will also come under scrutiny when seeking investment so ensure your team and its structure is iron clad.

Market know-how – Whilst no team knows everything and most investors want to provide some form of mentoring, they also want to ensure you have the knowledge to make your business a success in your respective market.

Perfect your business model

Whilst demonstrating all the right qualities in person is particularly important, you won’t get past an investor’s front door without showing your potential on paper. Articulating a profitable and expandable business model is essential and will give investors all the more reason to want to get their foot in the door of your business as soon as possible. Ultimately ensure your business model is realistic, lacing your plan with unachievable targets and unsubstantiated claims will only lead to trouble in the future. This is why you should really consider the services of a small business accountant as they can help with everything from business startup and development to cash flow forecasting and budgeting. These services are very beneficial for startups looking to entice investors with realistic outlooks and a well-thought-out plan. Having an accountant on board also means it’s one less role for you to take on so that you can focus your efforts on running the business. However, if you would rather do all your business dealings online there are other alternatives that you can have with accountants. You may want to look at choosing a cheap accountant online and seeing how they can help you remotely with your business.

Know your competition

Validating your interest and knowledge of your market, customers and competitors should be the main focus of your funding application and will ensure you are one step ahead in every incarnation of your business plan – which is a breath of fresh air for vigilant investors. Study your competitors and analyse every last detail to make sure you are in-line for investment before them!

Brittany Thorley works for Mercia Fund Management (MFM), a leading venture capital firm who actively assists early stage businesses in their search for investment.