How To Use Sales Tactics To Sell Your Company To Investors
By David Neagle
You’ve got a successful business that you believe in. You want to help the business grow, but first, you’ve got to find more investors. Here’s how the sales strategy you use in your business can be modified to work on a potential investor.Let’s Start with the BasicsA company’s own sales strategy usually comes from a place of value; it’s focused on how the business can help someone else and benefit his life. The product or service that you are offering must solve a problem that customers have.
With investors, it’s a bit different. Investors don’t necessarily need your company. They can invest in other companies and opportunities. You, however, can land on their radar by using the value-added approach when you’re approaching them.
Before you begin to garner more investors, let’s take a look at what you should be doing for your core clients. It’s really all about ethics, and the person making the sale needs to know that.
An unethical way of looking at this is when a person is selling things to people who don’t have the ability to use them, or simply find no value in them. Make sure that you’re sticking with your core competence and your core client. A win-win business negotiation enables you to go after your core client without taking on clients who don’t have the ability to benefit from what you do.
When you’re with a client, you need to carry a tone of confidence that shows you know what you’re doing – but you also need to carry a tone of authority. People are only convinced when you’re convincing.
Dealing with Investors
When you’re dealing with an investor, it’s not about positioning yourself over them, but having the confidence that you’re the best there is when it comes to what you do. If you appear arrogant to an investor, he will walk away from the table every single time.
The key here is to highlight your core skills, what your company does well, and where you are going. Investors want to know that you’ve got a vision for the company, and that this vision is backed up by factual research. Investors need to see a market demand for your product or solution, and this is information you should have had before even launching your venture. Don’t be afraid to offer up your proof – it’s not just the icing on top of the cake, but the cake itself!
Research, Research, Research
If a company stumbles anywhere with an investor, it’s usually because they haven’t done enough research to give evidence to investors that they should be investing in their company. A good idea is just that: a good idea.
An investor wants to know why they should invest in you. For the investor, it’s a simple math problem and a logical decision. Either there are enough facts on the table to support the investment, or there aren’t. You are minimizing the risk on the investor’s end by doing your homework and bringing it to the table.
Failure to do enough research can leave an investor with too much guesswork. When you’re not doing your homework and grabbing at straws, then you’re leaving yourself at risk – and putting the investor at risk, too. Based on your lack of knowledge, an investor may think that you won’t have the ability to overcome problems when they, inevitably, show up.
You want to make sure that you’re doing your research and you’re able to show where the market is headed. You need to demonstrate that you have a competitive edge; you need to know why you feel your company should be invested in over any other company. Don’t leave that mental leap up to an investor.
It’s Not Always about the Money
Selling to an investor is a lot like selling to a corporation. It’s not always about the money. You need to find out what an investor is really looking for. If you’re going to sell to anybody, you need to find out what he really wants. Does this particular investor have an interest in tech companies? Does that one like highly structured businesses that keep on top of details? You should do your homework and find what he invests in. In fact, you should be targeting the people whose preferences align most closely with your company’s strengths – these are your best shots at getting backed.
Does he have a philosophy? Does he have a vision for his investment company? What are his personal likes and dislikes? These details will help you tailor your presentation to an investor; the investment is really about him getting what he wants out of the deal.
By using the sales tools that you already have, doing your homework, and showing confidence in your company, you have the ability to reel in a potential investor. When it comes to finalizing the deal, your strategy should focus on fulfilling their needs while also maintaining your rights to do what needs to be done to successfully operate your company. That really is a win-win.
David Neagle, The Million Dollar Income Acceleration Mentor and author of The Millions Within, teaches entrepreneurs and commission-based sales professionals how to quantum leap their current incomes past the 7-figure income level, often in less than 12 months. As a world-class speaker, sales trainer, and success-mindset mentor to some of the globe’s top CEOs, David also privately mentors big decision-makers in their pursuit of quantum success and peace of mind.