Securing Funds with Better Communication With Investors

[This article was written by Dawn Castell.]

If you are looking to get more funding for your business, you need to have the right strategy. Otherwise, you could miss out on the opportunity to grow your business with additional cash flow. However, this can be easier said than done sometimes. So to help you, here are tips on securing funds with better communication with investors:


The first issue with getting better at communicating with investors is to increase your communication in the first place. This enables you to be in front of them more often and be top of mind. That way, when they are ready to invest they will think of your idea first.

To stay top of mind and communicate often, use every channel available to you. For instance, you should always be doing a social media campaign that drips content every day. In addition, have investors join your email list so they are seeing your content in their inbox. And don’t underestimate the power of networking and connecting in person.

Social Proof

Investors want to be sure they are going to get their money back. When you don’t have many deals under your belt, this can be hard to convince them of. However, if you get a few investors to vouch for you, the social proof effect will make new investors trust you more. This will encourage them to invest in your idea, or at least to hear you out and give you a chance to demonstrate your value.

Another way to generate social proof is through your wider social circle. Friends and family members can vouch for you and how trustworthy you are. Or consider having testimonials from happy customers clearly displayed on your website. This shows that your product or service is meeting market demands and this boosts confidence in investors.


When you give to someone, they feel a need to give back in some way. You might be wondering how you can give to investors in a way that will make them want to invest. However, it is possible and something that you should try.

For instance, you can hold an event at your company where investors can gather and meet with other industry people. Make sure you cover your liabilities by getting small business insurance quotes for the event of course. Then if they make a great connection that leads to business down the line for them, they will remember you and be grateful that you facilitated the interaction.

Benefits Instead of Features

Many entrepreneurs make the mistake of focusing on features. Features are the physical or technical descriptions of your product or service. For instance, a car dealership might sell a car that has chrome wheels and dual tone paint. However, these are simply features. Benefits are what the features actually do for the customer.

In the case of a car, a feature like shiny paint would mean the buyer can feel more sophisticated and unique. And ultimately, this end result is the benefit that you have to propose to your investors. So instead of mentioning that you grew sales by a certain amount last quarter, talk about how much it will affect their return on their investment.

Overcoming Concerns

Every investor will have concerns. This is to be expected. However, the key is in learning how to overcome them.

When an investor has a concern, seek first to understand where they are coming from. Never try to make them feel wrong for having issues with investing. Once you hear them out, then you can answer their concerns in a way that encourages them to reconsider.

When it comes to getting more out of your business, you need to have the funds to compete in your market. However, often times business owners do not communicate with investors in ways that are most conducive to this. Therefore, it is necessary to understand the principles of effective communication that will enable you to connect with more investors of higher quality more often for better results in getting the funding you need. Use the advice above to make your bottom line bigger than ever before.

Author Bio:

Dawn is a budding entrepreneur. After graduating with her MBA, she spent a few years working in the CPG industry and a few more working in the business tech industry before she set off to start her own business. She has been consulting with businesses, large and small, on the side ever since.

Leave a Reply

Your email address will not be published. Required fields are marked *