By Laura Crossan, Marketing Coordinator
Attracting investors is an important element for the growth and success of most startups. To secure funding, you need to communicate your unique value proposition, business plan, team and results in a clear and compelling way. Here are five effective strategies for attracting investors and securing the support you need to take your business to the next level.
- Develop a one-page business plan. Instead of creating a long and detailed business plan, develop a one-page plan that focuses on the essentials. Your plan should include your unique value proposition, target market, competition, marketing strategy, financial projections, and key performance indicators. The Lean Canvas is a great tool to accomplish this task.
- Build a minimum viable team. Recruit a minimum viable team that has the skills, resources and experience you need to execute on your plan. Once your team is in place, it’s time to set goals and achieve them. Executing a plan is a massive skill that is attentive to investors.
- Set achievable goals. Let’s be realistic – people invest in people. Traction is going to drive an investor’s opinion of the opportunity, but you are driving that traction. Investors invest in lines not dots. You have to be transparent throughout all of your endeavors. This is how you are going to build relationships and ultimately prove to an investor that you are real and trustworthy. Be sure to highlight any wins along the way. Every bit of momentum counts and numbers rule the day.
- Create a compelling elevator pitch. Create a compelling elevator pitch that can be delivered in 30 seconds or less. Your pitch should focus on your unique value proposition and the problem you are solving for customers.
- Engage with investors early and often. Don’t wait! Engage with investors early and often to build relationships and get feedback on your plan. This will allow you to iterate and improve your plan based on investor feedback.
In conclusion, attracting investors requires a focus on simplicity, iteration, and feedback. By developing a one-page business plan, building a minimum viable team, setting achievable goals, creating a compelling elevator pitch, and engaging with investors early and often, you can position your company in the best possible way to attract investors.
Remember that attracting investors is a process, and it takes time and effort to build relationships and trust. By following these tips and staying persistent, you can increase your chances of getting your business funded.
At VAULT, we’re more than just a custom software company – we’re a partner in your success. We specialize in helping companies ideate, build, develop and grow technology solutions across multiple industries. For over a decade, we’ve solved design challenges, shipped purpose-driven products and software, and have successfully launched more than 60 tech companies.