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What must you do to attract and motivate investors? You could answer this yourself after studying the three tips below.The entrepreneurial spirit is alive and kicking in South Africa, and many an entrepreneur have learnt valuable lessons from pitching their ideas to tough investors or sharks in the program “Shark Tank”,  courtesy of American television. What do you have to do to urge investors to open their wallets and invest in your company? Janine Popick, CEO at VerticalResponse, says that you should watch “Shark Tank” and apply the lessons in your business. Use the tips below to improve your chances before you talk to the investors.

 Know your business and pull out all the stops

It will take a lot of time and effort to make a perfect pitch to investors. You have to know all the facts and convey them in such a creative, charismatic manner that your presentation will grasp their attention and show them that you have what it takes to drive your company to success. Be clear and concise about what and who your company is for and how you differ from similar enterprises.

 You need to know your numbers

Potential investors want to know how much your business is worth, what you make with sales and how much you owe. It would be to your advantage if you know your numbers by heart, else you might find yourself dismissed quickly. If you can provide proof of huge sales deals or future orders from a well-known source investors will be reassured of your abilities and credibility. Investors invest for only one reason: they want a fair return, so if you offer them only 10% return on a R2 million investment, no-one will be interested in lending you any money.

Forfeit your salary

Don’t even consider asking investors to help you pay off the debt you made while you were getting your business off the ground. Not making any profit during the first months and even years of starting a new business is part and parcel of being an entrepreneur, and something you have to accept, or abandon your dream.

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.  Errors and omissions excepted (E&OE)