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3 Ways to Attract Investors to Your Business in Ghana

Date: 2022-05-30

Have you ever wanted to start a new business? Well, of course everyone has. But not everyone has the necessary funds, especially in this part of the world.

This obstacle of raising funds for your small business may stop you from venturing out on your own. But this isn’t something that should discourage you, when you have the right information. 

Here in this article, I will provide some useful tips that will help you attract investors to your business in Ghana.

 

Why your business needs Investors:

In order to have a successful business, be it in Ghana or anywhere in the world, you will need several things. 

You will need the actual product that you will be selling, you must have a good website, and a major part involves getting a lot of customers, finally you need investors to aid you in expanding your business.

Getting an investor to invest in your business in Ghana, whether small or big, may be something that you are not yet willing to do. 

But there are a lot of reasons why you should get an investor, no matter how little capital you have. 

It doesn’t make sense to work hard and be successful in a certain niche for you, without having someone in your business who can inject funds when need arises to expand your business or try new markets.

The same way a man has a woman and he has children, when two people show interest in the same thing or when two people interact with each other in a mutual agreement, they come together to form what is known as a business partnership.

In the process of forming the partnership, one party who happens to be the entrepreneur shall provide his/her skills/experiences/life savings.

 

Where to Find Investors:

I know it can be challenging trying to gain the attention of potential investors into our business, and for that, this is where I will advise you on where to find investors. 

Because, in order for any business to survive, you'll need several things. One of them is funding. And I've discovered that one can apply for funding in over 90% of all cases without the help of an investor (well, almost). 

However, if you find it challenging to find that extra money you think could really boost your business, then finding the right investor might be right for you.

So, below are places you can find investors for your business.

Online Fundraising (Social Media):

You will agree with me that the power of social media is almost limitless and can be employed to serve your greatest needs when use correctly. 

Social media can be your best friend as a lean  startup or solo entrepreneur looking to test the market, gain traction, and attract investors. 

It makes it easy to be discovered, and is still one of the most cost-effective methods of reaching others who might be interested in your business.

Here are some social media platforms and how to effectively use them to find active investors for your business(es) in Ghana.

LinkedIn: Since this platform is filled with business professionals, you can easily send cold messages or send quality introductions to pass the social proof where guarded investors such as Venture Capital investors can be found. 

Facebook: for meaningful relationships after you have been able to meet with an investor once or twice. It is critical to build the relationship to generate trust. 

Twitter: for thoughtful conversations and engagement with relevant information shared by the investor you can hope to bring to your small business or startup company.


Attending Events:

You will agree with me that success in business and fundraising is all about visibility, and that visibility comes by getting noticed by the right investors, who you know, and who knows you. 

Attending events is a great way to achieve this. Before you attend, try to find out who is attending the event ahead of time and schedule meetings to be productive. 

To get ahead of the competition and take a more passive route, consider attending other events where your investors are likely to be. Think sporting events, charity fundraisers, etc.


Ask family and friends:

This may be the easiest and most cost-effective way of raising money for your start-up or small business in Ghana. 

Talk to your family and friends about your business’s needs. Decide if you just want a loan from them, or if you want investment funds. A loan may be easiest for both parties - you just pay it back over time, with interest. 

But don’t be too casual about the way you approach this with family or friends (they may take you for granted), or assume that it’s a done deal just because you know these people. 

Do a proper pitch (using your business plan) and let them know when they can expect to make their money back. If they’re investors, explain the risks.

 

What to do to Attract Investors to your business

What actions should a Ghanaian start-up or small business take to attract investors? This section will go into details that will help you craft your strategy and get the attention of angel investors and venture capitalists. 

It is for entrepreneurs who want to raise funds to grow their business and need financial partners.

Below are “common” things you need to do and get ready to attract investors into your business. Make sure your company fits the profile: Before you pitch to potential investors, make sure the person is a fit for your business. 

That is, ensure that their past record shows they have invested or have interest in your industry, as this will make your pitching easier for them to understand.

Get your business ready: Obviously, you need to have started something before seeking out investors. Make sure you have results, no matter how small (2 customers or 20 customers). This makes it easier to convince them that your big idea works.

Seek out investors: You have to actively seek out investors. You need to reach out to potential investors and pitch your big-working ideas to them and try to convince them.

Polish your financial reports: I believe that you will not like to appear as “fake” before your future investors when raising funds, like many young entrepreneurs do by making the mistake of trying too hard to impress potential investors in falsifying financial reports or stating half-truths. So, make sure your financial report is up to day and accurate.

Start building relationships: Always have it in mind that investors, just like you and I, are not robots; they appreciate healthy human communication, and they are prone to biases and fallacies. 

Therefore, your respect, interest, and attention are important when establishing a potential partnership.  Always be modest in your interactions and show respect for the other person, whether they invest in your business or not. For every investor you meet is a potential gateway to a larger network.

Work on your elevator pitch: Before you walk into the room for your pitching, it’s important to have done your homework. You have to know your industry and your competition—hopefully, better than the investor. But don’t assume you know everything. Be open to advice and criticism. 

Time really is money for wealthy investors. Prepare a brief, compelling story about your business, focusing on the problem your product or service solves. Why would people pay for it? What have you achieved so far?

Be realistic: Before the presence of your potential investors, be realistic with what you are presenting to them. Make sure you are not overestimating your business and underestimating your competitors.

Prepare for due diligence: Investors will usually want to see your financial statements, including any outstanding debt, as well as the ownership and legal structure of the company. 

Make sure you anticipate what they will request and questions they might ask so you make a great first impression.

 

How to attract Investors?

Having a good business strategy helps in attracting investors into your business. 

Attracting investors has become a tedious and difficult task in recent times. Being able to attract investors into your business is very crucial if you want to develop your business enterprise. 

With that in mind, there are some steps that you can take to enable such things as learning how to attract investors to your business.

Find your investment strategy: You need to be aware of what role your investors are coming to play in your startup. Here are some possible investment strategies when seeking our investors.

Network investing: Investors in these categories will provide you with the connections you need, be it access to their resources, leveraging on their brand reputation or even their infrastructures to drive your new start-up.

Financial investing: These investors are there to invests cash into your business for the returns they will get.

Co-founder: These one will work with you in the everyday activities of the startup while taking a percentage on the equity of the business.

Know what you can offer anyone who's interested in investing in your business: This is an important point which I believe you shouldn’t overlook. Make sure it is stated clearly what each investor will get and what kind of value they will be getting.

When this is clearly stated and communicated, an investor from a first glance will know if this is worth their time and resources or not. Don’t be afraid to do so.

Know what makes your project so appealing to potential investors: This is just a reminder of what you already know and, probably, have done. Ensure that you state clearly and convincingly why you think investors should rather put their money into your business than your competitors.

 

Takeaway: While investments are crucial for businesses, you need to invest some time into making yourself attractive to investors. Make sure your presentation is focused on them, not you. Once they jump on board, jump on one of our buses!

If you still need further guidance on how to position your business for investment, quickly contact us at info@fainajsxpress.com. 

Publish By: Samuel Davidson

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