How to Increase Your Chance of Securing Investment

Written by Rebecca Robinson – facilitator of GM Business Growth Hub’s Create Growth Programme & performance and growth coach 

As a business owner in the UK’s vibrant creative industries, you undoubtedly possess a wealth of talent and innovation. However, attracting investors requires more than just creativity; it demands a strategic approach that demonstrates your potential for sustainable growth and profitability. After all, investors are in the business of making money, so you need to show them how you can help them achieve their financial goals.

You’ve likely heard the basics: have a robust business plan with projections, understand your competitive landscape, offer a viable and sustainable product or service, and have a clear point of difference. You’ll also need strong brand awareness, a compelling narrative about your mission and plans, and plenty of evidence that you’re the right business to back. But here are some additional top tips to help you increase your chances of landing investment:

Know Your Audience

Are you targeting angel investors, venture capitalists, or professionals with experience in your sector? Each type of investor comes with different expectations and motivations. Some may be interested in paying it forward, supporting a vision they believe in, or hitting portfolio goals. For others, it may be as simple as comparing the return on investment in you versus the potential profit from a case of vintage wine. Understanding your audience’s priorities is crucial to tailoring your pitch.

Leverage the Influence of Lead Investors

Investors often follow like-minded peers. Securing the right lead investor can pave the way for others to join the deal. While it may seem daunting to gather a group of angel investors, focusing on landing the right lead investor first can simplify the process, as they often bring their network along.

Master Your Numbers

Investors need to see that you thoroughly understand your financials. You should know your numbers inside and out—how you make money, where the potential for growth lies, and what resources you need to achieve your goals. Clear, precise financial knowledge inspires investor confidence.

Identify Your Next Growth Milestones

Investors want to understand your growth trajectory. What’s your next big milestone? Be clear about why it’s important, what it will take to achieve it, and how their investment will help you get there. Investors need to see how their involvement will increase the value of their investment over time.

Consider “Smart” Investors

These are investors who bring more than just money to the table. They are individuals who can open doors, provide valuable expertise, or activate their network to support your growth. For example, an angel investor with legal expertise or someone well-connected in your industry can offer significant additional value.

Build Relationships, Not Just Contacts

No one wants to back someone they’ve just met and don’t know, like, or trust. Building a relationship with potential investors is key. They need to understand who you are, just as much as you need to know them. This is a long-term partnership, so do your homework on how they work with other businesses and demonstrate that you can execute your plans by providing regular, short-term updates.

Understand the Cost of Investment

Investment capital can be some of the most expensive money you ever raise. Investors often expect a 10x return on their investment, which can far exceed the cost of a traditional loan with interest. Be sure to weigh the long-term implications of taking on investment versus other financing options.

By following these strategies, you can significantly increase your chances of attracting the right investors to your creative business.

Remember, it’s not just about securing funds; it’s about finding the right partners who can help you achieve your vision and long-term success. With GM Business Growth Hub you’ll get access to expert support to help you on your journey. Their Create Growth programme is the perfect place to start! Business Growth Hub | Create Growth

Rebecca Robinson is performance and growth coach who helps startups, small businesses and their founders. She facilitates GM Business Growth Hub’s Create Growth Programme, providing expert advice for creative businesses looking to secure investment. For more of her insights follow her on LinkedIn –  https://www.linkedin.com/in/rebeccajanerobinson/