In established businesses we can often transact with large sums of money without batting an eyelid, but when it comes to investing in a new idea or business investors will naturally be much more cautious. The biggest hurdle to starting your business will often be finding investors, willing to part with their cash. Investors can be extremely hard to come by, especially for small start-up businesses, so if you find one, it is crucial to securing their money that you sell yourself and your business credentials.
There are plenty of great business ideas out there, but without the right person behind them they won’t get off the ground. Think about it; would you rather invest in an ok idea with an experienced and enthusiastic team behind it, or an incredible idea with a team that has no experience? As an investor, which is more likely to net you a return?
Proving your credentials is all about selling yourself as your greatest asset. Here are just a few ways to help you to prove your credentials and secure that investor.
- Confidence – It seems obvious but many people are afraid that they will come across as arrogant. Don’t be afraid to talk yourself up and avoid being arrogant by focusing on your skills to ensure it is relevant.
- Honesty – Admit to any shortcomings you have, whilst telling the investor how you will overcome this skills gap. Suggest bringing in a team member with the necessary skills, or if money is tight, look to friends or family to assist you in that area. A problem is only that when you don’t have a solution.
- Passion – Confidence inspires confidence, so you need to be passionate about your business and how it will work. How can you expect someone else to buy into you and your business if you aren’t 100% invested?
- Be inquisitive – Although you are the person looking for investment, you also need to ensure that the investor is right for you and your business. Don’t be afraid to ask relevant questions and ask what attracts them to your business.
- Feedback – whether you secure the investment or not, it is always a great opportunity to gain feedback about you and your idea. They might not want to offer you money, but perhaps they will provide some invaluable advice.