3 Ways to Get Investors Interested in Your New Business by Microsoft Small Business

Start with a business plan
The world is full of people who could not find the funds to turn their great ideas into viable business ventures. But it's also full of people who could - and did.
To join the ranks of successful entrepreneurs able to obtain financial backing, experts recommend you do at least three things before you go out and try to persuade a lender that your great idea is worth investing in.
1. Write a business plan If you're launching a new business, writing a business plan is worth doing whether you are seeking outside investors or not. That's because your business plan basically defines what your business is all about: It outlines your strategy for developing and growing your business and establishes how you will measure success.
Investors will want to see your business plan; in fact, it may be the first thing they ask for. Here are basic components you should consider including in your business plan:
* Mission statement - Clearly but concisely state your company's long-term mission.
* Management team - List the CEO and other management staff, including their experience in the business your are starting and achievements that demonstrate a record of success.
* Market summary - Review the trends and changes in market share--including key players, costs, pricing and competitors--that identify the opportunity for your business.
* Opportunities - Call out issues and problems that your potential customers have and the product and/or service opportunities created by those problems.
* Business concept - Describe the key concept, technology or strategy on which your business is based.
* Competition - Outline who your competitors are and the competitive advantage your company brings to the market.
* Goals and objectives - List your financial projections for a 3- to 5-year timeframe, including a summary of your forecasts and the spreadsheets you used to arrive at them. Be sure to list specific, measurable objectives for achieving your goals - including both market share objectives and revenue/profitability goals.
* Financial plan - Develop a high-level outline that explains your financial model and pricing assumptions; include expected annual sales and profits. Be as thorough as possible in this area; investors will want to closely scrutinise when and how they will see a return on their investment.
* Resource requirements - Provide a list of what it's going to take to make your venture viable. Include personnel, technology, finances, distribution, promotion, products and services.
* Risks and rewards - Be honest about the risks involved in your venture and how they will be addressed. Also estimate rewards anticipated; again, this is something investors will want to see.
* Key issues - Identify both near-term and long-term issues that need resolution, particularly those dependent on financing.
Once you have gathered the information you need and written your plan, use the Business Plan Presentation that is part of the Small Business Office Template collection (see Tools below) to create a presentation you can give to potential investors. Be sure to customise the template with your company's logo and colour scheme if you have one.
2. Prepare your talk Having a business plan means you've already started down this path, but before you start knocking on investors' doors, you need to be prepared to discuss some other issues. For instance:
* As the leader of this new enterprise, investors are going to want to know about your personal credit history and how much collateral you're willing to put into the venture. You need to be prepared with detailed information.
* They'll want to hear more details about the competitive landscape. Consider using the Competitive Points List chart found in the Small Business Office Template collection (see Tools below) as a starting point.
* How will potential customers learn about your product or service? Having at least a basic marketing plan outlined will let them know you are serious about building a successful company. Use the Basic Marketing Plan template that's part of the Small Business Office Template collection to get started.
The more ways you can demonstrate to potential investors that you've put a lot of thought into this new business, the more interested they will be. You might also be prepared to discuss how you're going to track your financials; it might be useful to have some knowledge of financial management software designed for small businesses.
3. Create relationships, not transactions Before you start talking to investors, have a plan in place for how you will use their expertise as well as their money. It's likely that people who lend money to small businesses have valuable insight to offer from their experience with other start-ups, or perhaps from starting their own companies. Make it clear when you meet with them that you'd welcome their involvement and advice and suggest ways they could help you, either formally as a member of a board of directors or informally as an advisor.
This approach will show investors that you are open-minded and willing to learn from others while at the same time, organised, driven and fully committed to making your business succeed.