Attracting investment for your business

The government has just hosted a big investment summit, all focused on bringing money into the UK. But that got me thinking – what about bringing investment into your business? Whether you’re a start-up looking for a jumpstart or an established business aiming to scale, securing investment can make all the difference. And, let’s face it, giving away a slice of the company (equity) might be more appealing than taking on a hefty loan you’ll have to repay.

 

So, how do you get investors to say, “Yes, I’m in!”?

 

A growing market with a clear, unmet need

 

It’s not just about having a great product or service. Investors want to see that you’re stepping into a market that’s on the rise – and solving a real problem. You need to show that your business is addressing a gap, not just joining the crowd. Ask yourself:

 

  • Is the market expanding each year?
  • How big is your potential customer base?
  • Can you handle any hurdles like market regulations?
  • What do experts (or influencers) say about your product or service?
  • How does what you’re offering solve the market’s unmet need?

 

Answer these questions, and you’ve already ticked a big box for potential investors. Proving that your market is growing and needs what you’ve got is a definite way to grab their interest.

 

Have you got the right team?

 

Your product can be great, but if your team isn’t, investors will walk away. Ideally, your team should include someone who’s already been through the investment journey and can guide your business through the ups and downs. Investors will also want to see that everyone on the team has a clear role, knows their stuff, and is working toward the same goals. Investors love a solid team as much as a good idea. So, make sure yours is up to scratch!

 

A cohesive business plan and pitch deck

 

Think of your business plan and pitch deck as your chance to ‘wow’ investors with how well you know your business. These documents should highlight your financials (they really care about the numbers), your business valuation (which EBA can help you with) and the amount of investment you’re asking for. You’ll need to explain exactly how you’ll use the funds – and what investors will get in return.

 

It’s not enough to just have a plan; you need to show a five-year roadmap, detailing your growth and how you plan to scale. Investors want to know where you’re going, not just where you are. If you need help with this, it’s something we can assist with at EBA – so just let us know!

 

An innovative product and a unique selling point

 

Let’s be honest; if your product or service is just like everyone else’s, investors will probably yawn and move on. To stand out, you need to show them your unique selling point (USP). What makes your product or service different, and how are you going to stay ahead of the competition?

 

If you can’t answer those questions, investors won’t see why your business is worth backing. But if you can, and you show how your product or service can grow and innovate, you’ll have their attention.

 

Proof of Concept

 

Ideas are great, but investors want to see that your concept works. Whether you’re a start-up or launching a new product line, you’ll need something tangible to prove your idea is more than just theory. Depending on your business, that proof could be early test results proving safety or effectiveness, or maybe conversations with potential customers validating your product

 

Showing investors that you’ve already made progress and have proof your idea works could be the tipping point in securing that much-needed investment.

 

Conclusion

 

So, whilst attracting investment might seem like a big task, breaking it down into these steps can make it a lot more manageable. Focus on your market, your team, your plan, your product’s uniqueness, and proof of concept. That’s how you get investors to not only notice you – but to invest.

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David Elliott

Chartered Accountant, BSC, FCA

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