Approaching an Investor

In a previous blog, “Choosing Investors”, we said it is best to list about 100 investors. It is based on the fact that not every investor you talk to will respond positively. Choosing investors is merely a pre-beginning of the whole investment process. The process of choosing prospective investors is useless, until you approach the investor. Before you approach an investor, you have a goal and plan. It includes how you find the investors, and research you made on him/her.

It begins with fully mastering the message you wish to send. One of the greatest challenge is getting the message through without saying much. People tends to explain everything at once, which could make it tough to maintain others’ curiosity. The best strategy is to ask yourself a very simple question: “how do I get my message through with maximum 250 words? This does stop you from writing everything you want to say, even if it exceed the 250 words – first draft – and keep editing until the message gets through within 250 words.

Now, you can begin to think of how to best approach the investor. It is mostly important for you to be your professional self. The first approach should not be strong. It should be welcoming, interesting, curiosity arousal, and open door to new opportunities for the investors. Fortunately, the traditional way of forming a relationship still begins with a simple hello, and followed by “going with the flow”. Since both parties (you and prospective investors) have a common interest (business branch), it is much easier to communicate. The flow is directed by the topic, which you choose.

Traditional approaching techniques for investors might work. You can use one of the communicating channels he/she uses – email, text message. It might be more suitable to visit somewhere the investor love to go to, and interact with them there. It depends on your circumstances and strength. This is all about a game – that is exactly what you developed in the plan. Everyone know that plans are like a window that construct everything you need to take a position to play the game that simplify the plan execution.

First approach should be about grasping their interest, and make him/her wants to know more. One of the best strategy is excluding your perspectives. This means focusing on what you want the investor to see when you first approach him/her. For example, if you want the investor to see an opportunity, then your message might include something like:

Beauty Sustaining Corporation (BSC) is a two years old company that sell accessories and cosmetics. We focus on female gender. The market size is 4.5 billion dollars, and our objectives are to gain 100 million dollars within 10 years. Expands to a national level within five years. Be an international supplier within the next ten years.

This is achievable with solid marketing strategies, and delivery. Our current circulation is 5 million per year. Our objectives and your identity are perfect match, and we will love to discuss how we can work together.

As you can see this tell the investors your company’s success, and your desire to grow. The fact that your two years old company is already making 5 million dollars is rare. It is more than enough to see that your team, investments and plan are solid. This has the potential of developing a good curiosity for him/her to find out more about the company. But every detail you provide must be true, and verifiable. These are some useful strategies for approaching investors.

In conclusion, first approach include providing what the prospective investors need to consider your company. This allows the possibilities of moving further in building a solid and attractive relationship. It includes offering him/her something exciting, believable, realistic, achievable and/or productive.