Attracting investment can be quite the challenge for social entrepreneurs. Barrier to accessing investment are wide ranging from a business’ failure to answer detailed financial questions, poor articulation of one’s value proposition, lack of awareness about available investment options, and the demand of transparency by investors which social entrepreneurs tend to overlook, among others.

The following are tips that can help social entrepreneurs navigate these barriers:

1. Create a clear and concise business plan

A detailed and precise plan will attract the attention of potential investors. Your business plan must be well written with a clear scope of what needs to be achieved over a certain period of time. Your business plan should clear on your USP, your customer base and market potential, what sets you apart from your competitors and the team you’re working with. Be sure to highlight their skills and experience.

2. Be meticulous with your financial planning

Potential investors will be attracted to invest when you are more detailed about cost and money. You have to provide information on relative profitability of your activities as well as trends on revenue. Before investing in your idea, they will need to see how their investment will be used and how the returns look like at the end of the day. The more precise you are with your financial planning, the more trust you inspire, subsequently increasing the chances of receiving funding for your social enterprise.

3. Be clear on why you need investment

What will it be used for?
Is the most important question you need to answer. After justifying why you need the investment – whether it be for new systems or management support, you should also explain with clarity what has to happen to ensure success.

Potential investors should be convinced that their money will be put in good use and your project will achieve what it intends to.

4. Transparency. Transparency

The way to gain trust and confidence from the investor community is by being transparent. Ask yourself;
Can they see through your plan? Is each stage of the project clear and does it adequately address all concerns? Bring the investors to the same page for them to also see what you see. Nothing inspires investor confidence than a pitch that’s brief but clearly articulates the point.