Many people start or buy a business because they want to set themselves up financially. However, what many then discover is that making money from a business isn’t guaranteed, and it can be tough just keeping your head above water much of the time.
To make the kind of money you need to achieve your lifestyle and career goals, you have to operate a thriving business that continues to grow year after year. Often, this can’t be done on your own; you may require investors on board to drive the business forward and provide an injection of funds that allows the venture to scale. Whether you’re about to launch a start-up, or already have a business in place, it pays to think about ways to make your organization and yourself more appealing to potential funders.
While obviously plenty of reasons why people will or won’t invest in your brand comes down to the products or services you offer and how you provide them, keep in mind that investors also need to feel confident backing you as a person. They’re looking to see that CEOs and other managers have the traits, experience and skills needed to not only get top results, but also to be a pleasure to work with. Read on for some tips you can follow to help make yourself more appealing to investors.
Have Good Communication Skills
Investors want to feel comfortable that they’ll be able to discuss plans, changes, strategies and other details with you and that you’ll be able to listen effectively, get your own points across well and not be likely to fly off the handle if things don’t go the way you want them to.
They also need to feel you will be able to communicate well with others. As the leader of a team, you’ll have to be able to speak well to employees and motivate, inspire and engage them, not to mention train them and help them grow develop over time.
You’ll also need to have the ability to speak with ease and confidence to other stakeholders, internal and external, such as customers, suppliers, journalists, board members, shareholders and the like. Other communication skills investors will be looking for are the ability to persuade others, negotiate effectively, achieve conflict resolution and read and use body language well.
Showcase Important Personal Traits
Investors are also on the lookout to see if the CEOs and business owners they’re interested in backing demonstrate personal traits needed to effectively run a business now and into the future. For example, they’ll be keen to see if you have plenty of passion and drive.
These two characteristics are required to motivate other people and yourself; to help generate interest from customers, journalists, suppliers, potential employees and the like; and to keep going even when you face challenges. Being passionate about what you do, and being driven to succeed, will help you continue to work hard over the years and develop solutions to problems at times when others would be more likely to give up.
Investors are keen to find adaptable managers. In business things often don’t go plan, plus technology, legislation and other factors change, so those running an organization must be flexible enough to change course and adapt when needed. Investors want to feel like the people they put their faith in will be flexible enough to take on new ideas and to not keep going with an idea that will no longer work just because they had their heart set on it.
Be Educated and Open to Continued Learning
Of course, investors are also wary about putting their money into businesses led by people who think they know everything. This can be a recipe for disaster. Instead, they’re searching for CEOs who have shown they’re keen to learn and to keep growing and developing as time goes on.
To show investors you’re this kind of person, it helps to be educated. Whether you complete some sort of business degree, such as an online MBA program or similar, or enroll in a number of specific courses and programs, having qualifications on your resume will show your willingness to learn. It also indicates to investors that you have the ability to meet deadlines, commit to a goal, adhere to set guidelines and deliver quality work time after time.
When you chat with investors, remember to ask them about the level of involvement they might want with your company. Show them you’re keen to keep learning and to listen to any suggestions and opinions they have. By doing this — and by being proud of who you are, what you can do and where you know your business is headed — you will be sure to attract the right kind of money.