The new generations of entrepreneurs who have developed their business to the point of needing investors to build bigger ones, hesitate to give up control of their business. CEOs who are raising capital for their business want to know that the investor can bring a profit to their business. Entrepreneurs are more likely to give up some control of their business if they feel strong chemistry between themselves and the investor and if the investor has great skills and many connections to help grow the business.

Venture capital firms look for businesses with solid business plans that are realistic. Business plans should outline financial planning for future business growth that covers all aspects. The plans must demonstrate beyond any doubt that the projected plans are sound and why more funding is needed. The documents must show how much money is needed for the business to grow and be profitable.

Most investors are also looking at those businesses in which the owner has put his own money for the success of the business. If the owner is willing to take the risk himself, investors seem more willing to put up the additional capital needed. Entrepreneurs who are willing to take personal risk tend to work harder to grow the business.

When presenting business plans to investors, make sure the presenter has a good understanding of management and can be forceful in bringing the facts to the table. Make sure that the entire team presenting business plans to potential investors is knowledgeable about presenting the plans. Investors want to see a positive attitude from those who are going to run the business and spend the investors’ money.

Investors will want to see the company’s financial statements and budget plans. If the business is up and running, create a quick layout of the finances and how it goes. Investors are not looking for a perfectly financially sound business. They are looking to see how finances are handled and what improvements need to be addressed.

Equity investors are in high demand. Make sure all business plans are fully prepared properly and that all presenters are equipped with the right financial reports, charts, and budgets for the business. A poor presenter could decrease the chances that the business will get the financial money it needs to grow or expand a business. Investors will ask all kinds of questions and the answers should be what the investors are definitely looking for from the presenter. Presenters must know the business inside and out and be able to have the patience to answer questions from more than one investor.

The final step would be to show exactly how much money is needed and how it will be spent to improve the business for future growth. Do not inflate the necessary amount of money. Investors are very knowledgeable about business finance and they don’t play games when they invest their money.