Hi Boox Popular Magazine 2024
If you’re a startup or brand new business looking for investors, trying to attract and maintain attention can be tough. So, let’s take a look at a few things investors are looking for, and how you can retain their interest.
Clearly Displayed Projected ROI
Before investing anything, investors will want to see their projected Return on Investment (ROI). If you’re new to the concept of ROI, don’t worry – you’ve probably come across something similar in everyday life. Just take something like online casinos, for example. Online slot games will have something called a Return to Player (RTP) rate, which is the win value divided by the bet value, and times by 100 to make a percentage.
Though it is of course down to chance, this percentage RTP indicates the expected amount players will have returned to them on a win. According to Betfair, among the best RTP slots have RTPs upwards of 96.00%. This means that players will see a return of 0.96 on a winning bet of 1.00. Looking at this, higher RTPs are logically more attractive to players.
Similarly, ROI is calculated by dividing the estimated returns by the cost of investment and multiplying it by 100. Using this same logic, investors will have initial attraction to opportunities where the ROI is clear, and in their satisfactory range. Of course, many external and internal factors can affect payouts, however, ROI can be a good initial indicator.
Team Structure
For the sports enthusiasts out there, football is a good business metaphor as the idea that a good football team has strengths on and off the field, is relevant for businesses. We’re talking American football – on the field, you’ll need a strong offense and defense, as well as a quarterback to start the play. Behind the scenes, you’ll equally need locker room staff, coaches, janitorial staff, and even physiotherapists. Without strengths in every corner of the structure, the whole team could collapse.
Take this same logic to your business. Every company needs the right balance of outgoing customer-facing people who make the sales, and those who crunch the numbers behind the scenes – don’t just focus on the ones in the spotlight. Take time to highlight everyone in the team, and all departments, not just the outfield players. This allows investors to get a good grasp on your team as a whole, and do their due diligence.
Unique and Realistic Business Plan
Essentially, a business plan is a written document that outlines the business’ operations, objectives, and aims, and how it proposes to achieve them. Though the length and information will vary from industry to industry, according to Investopedia business plans typically range from 15 to 25 pages in length as well as various appendices.
Business plans start with an introductory section called an executive summary. This summarizes the mission statement of the business and includes notable information about leadership and locations. Then, the plan should detail products and services, followed by market analysis, marketing strategy, and financial plans.
As a start-up, it is essential to strike the right balance between making the business attractive to investors, but also ensuring that any projections and goals are achievable. The business plan should be unique enough to catch investors’ eyes, but also realistic so that they deem you trustworthy enough to part with their cash.
Each business’ journey is unique – there’s not one set approach. However, with these tips in mind, you’ll have a starting basis to begin fleshing out a more comprehensive proposal that attracts and maintains investors’ attention.
