Many young businesses tend to ask, “what is the best way to acquire investors in my business?”
The answer is… there is no best way. Finding investors is a process, it takes planning and hard work. But here are a few tips that may make find your perfect investor a little bit easier.
1.) Have a well-thought-out business plan
The very first thing you need to do it get investors interested in your business is to sit down and really take the time to create an organized business plan. How do you plan to grow your company and make it profitable? If you’re having troubles establishing your business plan, companies such as; 3+ Corp¹, Community Business Development Canada² (CBDC) or, Futurpreneur³, can work with you to construct an effective business plan.
2.) Networking to build relations
Network building is crucial when looking for investors. If you have a vast network of relationships finding investors becomes much easier. With high community standing investors may even seek you out! Get yourself out there, go to events and meet some new people you never know who you might run into. If you’re not sure where to start your networking, start here; StartUp Moncton¹ (SUM). The Chamber of Commerce for Greater Moncton² (CCGM) is also an excellent place to start networking. Another great way to network is through social media, for example, LinkedIn. LinkedIn is a great way to connect with companies and business owners in your area. Facebook, Twitter, Instagram, and so on; are also good but are they are more personal so be aware of what you post. By getting involved in local events, getting yourself out there and keeping a social media presence you will have a stronger growing network in no time; with a strong network comes people looking for investment opportunities.
Once you have an investors attention you are going to need to keep it. This is where an out-standing pitch is needed. Make sure you know what you want to say, explain to them exactly how investing in your business will make them money. Don’t beat around the bush; be direct. If you’re not feeling confident in your pitch, there are always ways to improve. Take the SUM pitches competition, for example, it’s a perfect opportunity to practice your pitches.
4.) Accelerators and incubators
If after going through the first three steps you still need a boost to find investors, accelerator and incubator programs are a good way to do so, but what are accelerators and incubators?
Accelerator programs come from companies such as B-Corps¹, Venn Innovation² and propel ICT³. Accelerators take your business through roughly 2 years of business growth within a few months. They provide you with a small starting capital and connect you to mentors in your field. At the end of the program, there is typically a demo show of sorts to display how your company has grown, thus attracting outside investors.
Incubator programs may take on earlier startups but they tend to be more specific depending on their sponsor. For example, an incubator program sponsored by a school may only be looking for educational startups. Usually, when accepted into an incubator program you will be relocated to work with other companies in the same incubator program. Co-working is a major part of an incubator program; you have shared workspaces and help refine each other’s ideas. The program will provide you with external mentors as well as a connection to the community. A couple of examples of this are the Hive la rouche¹ and Volta².
Both these programs are beneficial if you find the right fit for you. However, in either scenario, you will be connected to the community and longtime professionals in your field; building your network up and attracting investors. Hopefully, these tip help find the investor you’ve been trying to rope-in for so long.
If you’re still interested in learning more about accelerators and incubators, or even investors in general, here a few links to check out;