As a business grows or is just starting out, an important step in its future is securing an investor or investors. Oftentimes, entrepreneurs will say this is one of the more difficult tasks when looking to expand their ideas. We spoke with Claire Bahn in our most recent episode who gave us insights on the “investor side” of things.
Creating Your Company’s Face
“You’re not going to just give it to a random guy on the street that says ‘I can give you a mortgage’” - Claire Bahn
We couldn’t have said it better ourselves! Creating a reputable brand name is the first step to success. Investors and consumers alike want to know who you are, why they should put money into your business, and what makes you stand out from the rest. No one will want to randomly hand out money to a company without vetting them first. A red flag to an investor could be no online presence. If your company has little to no online presence AND you don’t have one, this could be something driving investors away.
In today’s world, having an online presence is vital to building your career. As our host, Jennifer put it, it’s like going on a date. If you have someone’s dating profile pop up on your phone but it has no profile picture or bio, you’ll most likely run in the other direction. The same concept goes for business.
“People want to get behind a person, they don’t want to work with this faceless entity that doesn’t have any meaning, any value…” - Claire Bahn
Create meaning and value behind your brand. What’s your mission? Where did your idea stem from? What’s your background? These are all small details about you and your company that will help investors see the bigger picture of who you are and where you will take your next idea. At Entrepods, we often say to create a persona of your company, this is a piece of advice Claire gave us as well.
By making your company have a face, it gives a reason for consumers and investors to get behind you. Your mission could be relatable to your audience, improving your sales, or your marketing plan is well thought out which means investors see your brilliance!
How To Attract Investors
So we’ve covered what makes investors want to invest in your business, but how do you get them there in the first place? It’s simple, give them security. Your company needs to be solid in not only your business plan but also:
Social media strategy
Potential problems and solutions
This is a list that keeps on growing. It’s a smart idea to look at other companies and put yourself in the investor’s shoes. What makes you like this company and what makes you want to steer away from it?
“You’re going to make sure it’s a company that is compliant with everything. You want to know who you’re giving all your information to.” - Claire Bahn
Connecting with angel investors or just typical investors for business can seem like a scary thing to take on, but it doesn’t have to be! Once you solidify your business and what you want it to be about, the rest will start to fall into place. As we like to say, treat your business like a business. This isn’t a side hobby or something you may get around to one day, this is your dream and you should treat it as such!
“When you’re doing your brand, you need to go into it with the whole idea of giving and not what you’re going to get” - Claire Bahn