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Create and implement an effective marketing strategy that makes your business more enticing to investors.
While new businesses fuel the economy’s growth, they also establish a fiercely competitive funding environment gradually, with each new entrant fighting to secure capital from a limited number of investors. One of the few tools available for businesses that want to find and attract investors is an outstanding marketing strategy. To help you develop the right approach, we’ll explore some general marketing best practices along with nuanced investor-focused marketing tips.
Marketing is about pinpointing your target audience, understanding the needs of people in that market and communicating how your company can solve their problems. Typically, companies do this to find potential customers.
However, you can also use marketing to convince people or organizations to invest money in your company. Here are four steps to take if you want to market your business to investors.
The first step is finding out what potential investors need or want in a business investment. Investors tend to focus on a few crucial factors:
Depending on your specific business, product or industry, investors may look at additional factors, including your strategic alliances, technical know-how, a critical mass customer base or intellectual property.
Figure out what factors are most crucial to your potential investors. Then, you can move on to the next step, which focuses on improving your business in key areas before you seek funding.
When you’re ready to sell your house, you might enhance the landscaping and declutter the interior to make it more appealing to potential buyers. You should go through a similar exercise with your business when trying to secure private investors.
Follow these steps to shore up your business:
In addition to the above, you should focus on any aspects that might especially appeal to the investors you’re targeting. Once you know what your potential investors are looking for, you need to ensure your business shines in those areas.
Next, create a business growth plan detailing your organization’s specifics, why your company is a good investment and what kind of investment you’re seeking. Create a PowerPoint presentation with some of this information for investors and write and practice your investor elevator pitch.
Consider also creating a one-page company overview that includes the main selling points for investors. All your marketing materials should be well-written and designed to look professional and attractive, portraying your business in the best possible light.
The next step is finding your ideal investors to pitch them. This process is akin to advertising and participating in trade shows to find customers.
There are two primary ways to find and interact with investors: online investing platforms and in-person events:
While the steps described above will help you identify, appeal to and find investors in general, you’ll need more than that to seal the deal. These four marketing hacks will help you attract your ideal investment partner.
One of the biggest mistakes budding entrepreneurs make is begging for funds from any investor who cares to listen. When desperate for capital, some business owners will market their businesses or ideas without identifying the type of investor they want. It’s better to home in on the investors that make the most sense for your business.
Here are some tips for identifying investors in your niche:
Once you’ve determined what your ideal investor looks like, ensure your PR strategy is coordinated carefully and sends the right message about your business to potential investors.
To accomplish this, back your PR campaigns with a solid digital marketing strategy. A well-managed content-amplification strategy designed to generate thousands of retweets, shares and referral traffic is the only way to ensure PR campaigns achieve maximum reach and engagement. (See more about digital strategies and social media tactics below.)
Here are more tips for creating a PR strategy optimized for investor attention:
Your digital presence should also be front and center so potential investors can find you and interact with your brand easily. The last thing you’d want is to make a successful pitch to a potential investor, only for them to spend a whole afternoon wandering through the internet looking for the slightest glimpse of your brand.
Here’s what we recommend.
Optimize your business website.
Your company website is a significant element of your business’s online identity. Your site is usually the first place potential investors go for additional information. Despite its importance, a surprisingly small number of businesses pay attention to their websites — if they have one at all.
Ensure your website, especially your landing page, is easy on the eyes. It should also:
Consider adding a password-protected page for investors or creating a separate website for them that links to your primary website. That way, you can have a webpage that specifically features the information investors want to know.
Optimize your social media presence.
Your digital strategy should also include social media marketing, another essential element that will solidify your online presence and bring your brand closer to potential investors.
But instead of using every social media channel available, double down exclusively on platforms truly relevant to your business and investors. For instance, if you’re an online fashion retailer, you’ll get more brand visibility via platforms like Pinterest and Instagram than X (formerly Twitter) because of your products’ visual nature.
While most social media outreach is designed to build brand awareness and promote your products or services to potential customers, you can also reach out to potential investors through social media. LinkedIn is the best social platform for investor outreach because you can directly message business contacts, participate in industry or investor groups and ask people in your network for introductions.
Use your blog to tell your story.
Blogs can be an effective method of attracting investors. Feature high-quality blog posts or guest posts on industry influencer blogs that tell your story and highlight your company’s unique attributes and selling points. Search for the blogs and social media profiles of investors on your radar and comment on their posts to start forging a relationship with them.
One of the most common ways of finding investors is by rubbing elbows with other people. For instance, hosting or attending a business networking event can lead to a one-on-one conversation with a potential investor who may be a future business partner.
Here are some tips for engaging in smart networking:
By combining digital and traditional marketing elements, you stand a much greater chance of catching the interest of that one person who could be the difference between funding success and financial disappointment.
After you’ve found the right investor who wants to fund your business, your next step is to determine if the investor is offering a good deal. Evaluate the terms, get advice from trusted experts or advisors and ensure the partnership works for you and your company before signing an agreement. Doing your due diligence will set you up for a successful working relationship.
Skye Schooley and Howard Goldstein contributed to this article.