Many otherwise-viable businesses struggle to grow simply because they lack access to capital. In such cases and others, being able to bring investors on board can allow a company to finally realize its potential. 

Many business owners and leaders, though, feel uncertain about how best to make a compelling case for investment. The following five tips have proven to be some of the effective ways of all to convince investors to commit hard-earned money. 


1. Show Some Results

When building a new company, it will often be necessary to persuade investors with the use of a solid business plan and other forward-looking perspectives. For businesses that already have some history behind them, simply showing others what has been achieved can be enough to attract much-needed capital. 

In many cases, existing companies already have the assets and tools they need to make these kinds of cases. Corporate websites like the one at which display plenty of evidence of success, for instance, can be enough to drive investors to learn more. 

Otherwise, it will often be worthwhile to put together a simple report or presentation that highlights what a company has already accomplished. It will sometimes seem as if investors need to be persuaded on the basis of potential, but concrete results can be even more compelling. 


2. Try Some Low-Key Networking

Business owners sometimes assume that the process of recruiting investors must be a formal, ceremonious one. In many cases, welcome investments end up following upon relatively casual, speculative contacts. 

Networking can be just as important to the health of a business as it is to the careers of individuals. Reaching out to some other business owners and leaders in the area can reveal some interesting possible sources of additional investment. 


3. Take on a New Partner

Investors often worry about whether the capital they commit will actually be used prudently. Entice an investor to come aboard as a partner, and such concerns will normally be put to rest. 

When thinking about adding a potential investor to the ownership roster, it will be best to seek those who have more than mere money to contribute. An investor who has professional expertise in an area where a company is lacking can become an especially welcome addition, as venture capitalists regularly prove. 


4. Describe How You Will Produce Returns

Many otherwise well-conceived investment solicitations never address the question regarding how returns will be produced. Even when the proposed use for capital seems interesting and thoughtful, that can leave investors feeling a bit nonplussed. 

The more you can detail how you will work to produce returns for your investors, the more likely they will be to write checks. While it is always important to respect the laws and mores governing such claims, many business owners end up being unnecessarily passive and vague. 


5. Seek Some Informed Advice

As with anything else, experience pays off when looking to recruit investors. Fortunately, many who have been through the same process are willing to weigh in and provide helpful advice. 

Just about every business community includes leaders who are known to be generous with their time and perspectives. That is just as much the case for investment-related questions as for other matters of strategic importance. 

Seek out some advice from someone who has successfully persuaded investors before and things can become a lot easier. Keep the preceding five tips in mind and you should find it easier to raise money for your own company.