business owner seeks investors

2021 Franchising Trends: How to Get Investors Interested

In our last post, we talked about upcoming industry trends to watch for in 2021. Investor interest in franchises will continue to increase. Here is how to get investors interested in your franchise in 2021.

Know What You’re About

How does every interview begin? “Tell me about yourself.” People want to know what they’re getting into. Much like a movie trailer or ad for an upcoming sporting event, people want to know why a product is worth their time and money before they make a commitment.

The best way to get investors interested in your franchise is by sharing with them what makes your business worth your time and money. If you’re
confident about the projected return-on-investment, they will be too. Sincerity is the best persuasive tool in your arsenal.

When you’re seeking investors, tell your story to draw them in. Make it clear why and how much your business matters to you. We’re not saying you should require potential investors to read a 7-page manifesto as the Anytime Fitness founders did. But it worked for them. The bottom line is, make it clear why your business is worth it.

Decide Who You Want

Investors think they’re targeting you, but there’s no need to be a sitting duck. It takes two to tango. By doing your research beforehand, you can specifically tailor your pitch to specific investor types. According to Entrepreneur, some private equity firms only want a share of your company’s equity, while others want that and influence.

Just because you’re looking for financial backing does not mean you have to forfeit your rights or comfort as a founder/owner. Think of your relationship with investors less like a loan and more like a long-term partnership. How can you both benefit?

Show Them What You’ve Got

If you want to get investors interested in your franchise, you have to prepare. Just as a haphazardly thrown together business plan will not impress investors, the same goes for disorganized accounting and business practices.

Make sure your franchisees are on board with a comprehensive accounting system and get all your ducks in a row when it comes to best practices. Investors will be scrutinizing these details specifically to determine whether or not you can deliver on your promises.

Go Get ‘Em

Once you have everything you need, it’s time to get out there and find investors. Similar to crowdfunding sites like Kickstarter or GoFundMe, entrepreneurs have their own version of helpful fundraising websites available to them like SeedInvest, Wefunder, and AngelList.

It also helps to go a more direct route and reach out through mutual connections in real life or on social media platforms like LinkedIn or even Instagram and Twitter. Investor partnerships are like a marriage, so it’s important to know more about your potential partners’ personal interests as well as their business priorities.

We hope this guide has helped you learn how to grow investor interest in your franchise. Now you know how to prepare for, choose, and take advantage of investment opportunities in 2021.