It sounds simple enough: Investors determine what businesses to invest in based on the potential return on their investment. It’s an easy equation, but there is an art to securing an investment deal. Smart investors consider both the details and the big picture when determining in what businesses to invest. What gives them confidence that your business will yield a high return on investment? Three major questions to consider when presenting your business proposal to potential investors:

1. Is there sufficient demand for your business or business product? Investors want to see that you’ve considered your market and properly identified target market segments. You need to prove that you’ll be able to generate enough business (through products and/or services) to support your revenue goals.

2. Do you have the necessary resources to get the job done? Without ample resources––adequate money, people and space––your idea will carry little weight with potential investors. If you don’t yet have the resources, investors will want to know how you intend to gather the resources you need.

3. Are you demonstrating integrity and credibility through your presentation? Sloppy or incomplete presentations tell investors that you’re not serious about your project. Financials that don’t add up and vague ideas and information blow your credibility.

Remember, an investor invests in both your business plan and your ability to see the plan through. By demonstrating that you can provide a high yield on investment, and that you have the resources to get the job done, you ensure the future of your small business.

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