The difficulty of finding clients. When You will start a business, probably You will experience obstacles that almost met all the people who want to start a business, CAPITAL. To overcome the obstacles of capital there are three answers, namely with the loan funds, investment funds, or grant funds.
How to Convince the client for Investment. Although different names and the mechanism, however, the third capital instruments general these have in common, namely the nature of the investment. That is the business receiving the investment must provide benefits and added value in the investors capital.
Get an investor of course is not an easy job. To slightly ease Your efforts in getting investors, You need to know first their point of view. You should know what factors affect their decision to invest.
A relationship of trust
Many things in business are decided based on trust. A good relationship produces a strong mutual trust. A strong belief arises because You can maintain Your credibility.
If Your credibility has not been tested properly and it is difficult to convince the investor will Your credibility, then you should look for investors from the people closest to You. Because the people closest to us means the people who most believed in us.
Experience tells a lot more for an investor than a presentation that passionate. Because experience is a certificate without a form that shows You’ve quite learned a lot.
The longer the age of Your business, the greater the chances of getting the investment. Therefore if You still do not get the investment at this time, be patient. Try to survive as long as possible because the experience is directly proportional to the time.
Show, You have the motivation to succeed
The success of investors is the fruit of the success of the business they fund. Therefore all investors must dedicate themselves to see the effort that they modal successful because their profits come from the success of the business that they modal.
That means they should also pay attention to the motivation of the recipient capital for success. Show investors that You truly dreamed of success.
Outside of the 3 factors, there is a primary key that You should know to Convince Your Investors that the ROI or Return on Investment.
What’s the ROI ??
Return of Investment is the amount of money obtained by investors as profits in the investment which is usually indicated as a percentage of total investment annually.
The numbers in the ROI can help create a comparative advantage that can be obtained for investors quickly. Suppose there are two business opportunities, which one to invest in the company “X” and which only invest in stocks.
With ROI, the Investor can choose which one produces the biggest advantage of their money. Whether investing in the company “X”, or they choose to invest in stocks. The higher the ROI, the better. So if You need an investor, ROI figures this is what they see.
Some basic factors determine the ROI of an investment. The basic factor is the:
All financial costs, including initial investment and subsequent investment. All financial gains, including an increase in funding (if any) of the investment and the return of investors ' money. Period, i.e. how long time required to obtain a profit. Nonprofits financial investment, such as the satisfaction gained by participating in the development of the new company.
Suppose You are an investor who is considering investing in one of the two companies, say company A and company B.
Company A : an Investment of 50 million, expected to number 100 million within 2 years. Company B : Investment of 150 million, is expected to return several 300 million within 4 years.
How to Convince Client for Investment. In the example above, which investment is better?
First, company A will generate a profit of 50 million. Remember, Your capital is 50 million. While company B will generate a profit of 150 million because You have invested 150 million.
At first glance, the investment in company B will generate a greater profit for You, which is 150 million dollars. But due to the length of time required before the investment in company B pays off, simple ROI in A company is higher:
Company A: return 200% in 2 years or a 100% ROI per year. Company B : return to 200% in 4 years, or 50% ROI per year.
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You have to remember that the higher the percentage of ROI the better. So, the ROI of the company A is better because it is higher than the ROI of company B, although the advantage is slight.
Therefore, Your ROI should be high. Anyone investors, ROI is what You should be prioritizing. Even though the investor was a friend or a relative.
It’s just, You have to be careful when choosing your friends, family, or relatives as an investor You. There are a few things You should consider.
One more, in addition to the ROI that You should pay attention to, You also have to be patient in looking for investors. Patience also is the key to success in finding an investor. Important, in Your self is always embedded a positive attitude if it turns out investors that Your stay has not been willing to fund Your business. A positive attitude is what makes You can be included in the characteristics of a successful entrepreneur.
How? You are ready to find investors? 🙂