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Want an investor for your digital company? Show sustainable numbers!



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Want an investor for your digital company? Show sustainable numbers!

Whenever someone has a big idea for a website, they usually think they'll bring on an angel investor in order to gain capital to make their company come alive.  The problem with this is that the investor wants to see plenty of numbers before they open up their checkbook, and those numbers aren't how much something costs you to make.

Sure, and investment from a big-time business person would be great but that doesn't always happen with startups that have no revenue streams.  This isn't the show Shark Tank where you can have a successful Kickstarter campaign and get 5 investors jumping on board for 30% of your company.  This is real life where it takes hard work and dedication to build your company from the ground up and entice investors with what you've done.


Have a solid business for investors to look over
I've heard of business owners going to banks for loans, contacting investment firms, and doing pretty much anything they could in order to get enough capital to run their business but they never had a detailed business plan.  Everyone that could potentially hand over a truckload of money will need to see what you plan to do with it, what you plan to build in the future, and how you're going to spend the money they're investing.  If their investment is simply to spend on payroll then you'll notice everyone backing out and ignoring your follow phone calls and emails. 

Investors want to know their investment will help your business grow exponentially and the first step to convincing them that this is a possibility is to show them your extremely detailed business plan.

Be profitable before approaching investors
Like I mentioned above, this isn't a TV show where you can have a concept item and get millions of dollars invested from super connected billionaires.  This is real life and you will need to run your business so it's as profitable as it possibly can be through your own actions.  When you start to plateau and can't move your business much more, that's when you reach out to investors who are connected with manufacturers and distributors who will pay you a lot of money to come on board and make your business much more profitable.

Think about some of these businesses on the show Shark Tank.  Most of the companies that are getting deals are already successful and have a history of increased profits from quarter to quarter.  If you can do this and keep your profits on the rise, you will likely entice an investor to come on board.

Know your industry inside and out
If the investor knows more about your industry than you do, they likely won't invest.  There are rare cases when an investor knows every little detail about an industry and is willing to come on board even if the CEO doesn't know 100% of how it works.  The investor isn't just there to fund things, they're there to help grow the business, and that's where their skills and connections come into play.

An investor will usually invest in businesses they're familiar with because they feel more secure about their money.  They know how the market works, they know what you should be buying, and they've done it all before so they likely can give you consulting on what needs to be tweaked about your business plan.  If you don't know everything they're talking about, then you won't seem like an invested business partner, and that could scare them off.

Make your pitch something to be remembered
Investors and Angels get pitched to all of the time, and that's why it's usually hard to get in contact with them.  They will have their secretaries or staff listen to the pitches, and anyone who passes the gatekeepers will then pitch the same thing to the higher-ups.  If you can make your pitch rememberable, then you're a step closer to getting to the big show where the decision-makers choose to invest or not.

Think about flashy costumes related to your industry, bringing models with you, throwing some cash around, having fireworks if you're outside, and various other things that will help you stand out from the rest of the boring pitches these investors will see day to day.


Final thoughts,
You need to be unique and profitable at the same time if you want to please a potential investor.  No one wants to invest in a company that doesn't have a revenue stream to support the business.  An investor wants to know they can come on board a thriving business and plug in their experience to make it even better and turn it into a fortune 500 company if possible.  Don't be afraid to get a little wild on your pitch, go into it thinking "I don't need this money!" and you'll likely have a better time and be less stressed while talking to them Want an investor for your digital company?  Show sustainable numbers!


Thanks for reading Want an investor for your digital company?  Show sustainable numbers!

- Tommy
https://www.seoclerks.com/user/TommyCarey

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