Five Ways to Attract Investors for Your Business | YRC

1. 10/5/2017 Five ways to attract investors for your business | YRC | Your Retail Coach Five Ways to Attract Investors for Your Business | YRC Jun 26, 2017 In order to start a business or to expand and embrace growth, every entrepreneur or a business enterprise at some point of time in its life cycle has to look out for investments from the outside. Self-funding is better but it’s a slightly rare phenomenon.   Small and medium-sized enterprises often have to rely on external ?nancial sourcing to fuel their take-o?. And ?nding investors who would be willing to put their money into business prospects can be a tough job. This job is no less than that of selling dreams. But here the odds in favor of an entrepreneur is that he gets to back up the dream venture with a business plan, a working business model, marketing and ?nancial feasibilities and reliable statistics and credentials. These elements are essential in a business prospect to attract and interest the potential investors like venture capitalists, angel investors, ?nancial institutions, etc. Message us http://www.yourretailcoach.in/blog/five-ways-to-attract-investors-for-your-business-yrc/ 1/6

2. 10/5/2017 Five ways to attract investors for your business | YRC | Your Retail Coach The Business Idea and the Business Plan The most important part in presenting a business proposition for generating the interest of investors is the idea of the product/service wrapped in a professional business plan. The business idea has to ‘sound good’ at the ?rst impression. The more attractive and innovative a business idea is the more interest it will be able to garner from the potential investors. A product or service will sound promising when investors know that it has the ability to solve a problem or satisfy an unful?lled need or want of customers or a market segment. Bigger the market segment for such a product, the more perspective the product will be in terms of demand and revenue generation. The more unique a product is, the more ?exibility a business will have in its pricing. These links and reasoning have to be substantiated with data and statistics obtained from reliable market research and surveys on competition, customer demographics and behavior, the total size of the market segment and targetable share and so on. The more attractive and innovative a business idea is the more interest it will be able to garner from the potential investors But a good business idea has to be accompanied by a solid business plan; something that discusses how the business model will work, how the value-chain will be created, how the logistics will be managed, how the channel management will take place, how the product will be positioned in the market, how competition will be tackled, how the business risks will be diversi?ed, what will be the pricing and promotional strategies, what technologies will be put to use and so on. The success of a business plan is expected to be re?ected in its ?nancial performance – an area which potential investors would be very interested in looking into. This necessitates that all the necessary ?nancial estimates and statements are prepared with professional standards and made ready for the study and analysis of the investors. Impressive ?nancial performance and a healthy ROI are deciding factors from an investor’s perspective. Impressive ?nancial performance and a healthy ROI are deciding factors from an investor’s perspective  Audit Getting ?nancial statements audited by a reputed ?rm re?ects the professional standards and integrity maintained by a business enterprise in managing and recording its ?nancial activities. The quantitative facts and ?gures appearing in audited ?nancial statements are of great importance to investors. These ?gures substantiate the claims made by a business enterprise about its past ?nancial Message us http://www.yourretailcoach.in/blog/five-ways-to-attract-investors-for-your-business-yrc/ 2/6

3. 10/5/2017 Five ways to attract investors for your business | YRC | Your Retail Coach performances and most importantly, its prudence, integrity and professionalism in handling business ?nances. The audited ?nancial statements of a business enterprise are important to investors because it gives them a window to look into their prospective investment destination. Any form of shadiness in ?nancial statements will straightaway result in investors walking out of that door. The business investors because it gives them a window to look into their prospective destination audited ?nancial enterprise statements are important of a to investment Regulatory Compliance Regulatory compliance of a business undertaking is yet another important area of consideration for investors. No investor would like to invest in any business or a project that is not regulatory compliant or may turn out to be violative of or restricted by the applicable laws. The regulatory framework de?nes the rules and regulations within which business operations are to be conducted. Before making an investment decision, it is important for a business enterprise and investors to evaluate a business project in terms of its regulatory feasibility. Before making an investment decision, it is important for a business enterprise and investors to evaluate a business project in terms of its regulatory feasibility Core Team and its Competencies The core team of leaders behind a business is what drives it. In the event of an investment decision, this core team will be responsible for the implementation and execution of the new project. It is natural on the part of the investors to be interested in the experiences, competencies and quali?cations of the core team and evaluate if this team has what it takes to successfully run the business or the proposed project. Apart from technical knowledge and expertise, this core team is also expected to possess and exhibit leadership qualities, business acumen, problem-solving and decision-making skills, and entrepreneurship and enterprise skills. It is natural on the part of the investors to be interested in the experiences, competencies and quali?cations of the core team and evaluate if this team has what it takes to successfully run the business or the proposed project Message us http://www.yourretailcoach.in/blog/five-ways-to-attract-investors-for-your-business-yrc/ 3/6

4. 10/5/2017 Five ways to attract investors for your business | YRC | Your Retail Coach Reach Out Making plans and strategies in the boardroom over a few cups of co?ee is only half the game. The other half is out there in the ?eld. Businesses looking out for investors have to reach out to them through socio-business networking which could include but not restricted to industry seminars, corporate events, association with professional bodies and so on. By being a part of these events and associations, entrepreneurs can improve the visibility of their business to investors and improve their business networking. Businesses looking out for investors have to reach out to them through socio-business networking If a business idea is good and it is backed up with a solid business plan the deciding factor in attracting investors is how the business prospect is presented. The right team at the right place could make all the di?erence. Before setting out to look for and attract investors, the core team needs to come up with their best work in terms of the business ideas and the business plan.  To know more about “Attract Investors for Your Business” get in touch with our Retail Experts on consult@mindamend.net Author Bio Varun Shah Chief Finance O?cer Get Advice to Start a Business  Related Blogs E?ective Ways to Financially Prepare for Expansion | YRC Strategies to Learn from Big Business Failures – II | YRC Message us http://www.yourretailcoach.in/blog/five-ways-to-attract-investors-for-your-business-yrc/ 4/6

5. 10/5/2017 Five ways to attract investors for your business | YRC | Your Retail Coach Strategies to Learn from Big Business Failures | YRC 5 Things to do After GST Implementation | YRC Search RSS Feed Subscribe to our Newsletter Email * Subscribe Recent Posts 5 Things to Check Before Investing in a Franchise Brand | YRC 6 Things you Must Keep a Check on Before Entering Into Retail | YRC How can an Indian SME Attract Investment? | YRC How SOPs will help in Franchise Business Expansion? | YRC Is Your Brand Ready For Expansion??? | YRC Message us http://www.yourretailcoach.in/blog/five-ways-to-attract-investors-for-your-business-yrc/ 5/6