The reality is more and more companies are competing for a limited supply of funding, so much like in the dating scene you want to appear attractive and engaging. Whether your business is seeking financial support from a bank, a private investor or a venture capitalist group, it is crucial that you make the right impression from the onset. When you are approaching bankers for funding, this includes putting together all the necessary documentation for a loan package, but when you are seeking investors the approach is slightly different.

In addition to the financial documents you’ll need to gather, there are other things you can do to make your business more appealing to potential investors.

Update the business plan

The business plan provides detailed descriptions of the way your company works. By developing instructional materials and documenting information on the “how to” for the operation, investors can get a strong sense of the company and how it operates. The creation of a company manual should include everything from detailed major operation information and key vendors to an organizational chart of employees and the small day-to-day tasks.

Gather financial figures

Investors are called investors for a reason. They are looking to invest their money in a business, not just give it away. Business owners need to make sure all financial information is up-to-date and ready share. This includes current and projected sales figures as well as what the company expects to need for operating costs and marketing.

Understand your financials

Just having the financial information isn’t enough. Be prepared to justify and explain where every penny comes from and where it goes. Investors will want to know what their investment will be going toward.

Reasonable compensation

Make sure the owner’s salary and compensation is reasonable. If the salary is too low, the investor will be concerned that a replacement will cause a serious cash flow issue. If the salary is too high, the investor will feel they are funding the owner’s lifestyle. This also goes hand-in-hand with making sure that you have the most competitive price for goods and services you are buying. You don’t want to overpay for goods that can be negotiated for a lower price.

Create a marketing plan

More often than not, simply opening the doors to your business does not drive traffic. A marketing plan will show how you plan on increasing awareness and traffic to your business. For the marketing plan, you’ll need to describe what you’re doing and the results, as well as the return on investment.

Develop a strong team

Most investors will want to meet with the key players at any organization. They will be looking to see that the management and key employees are professional, qualified and the right person for the job. This is also the time when the potential investor will get a real feel for the company, the flow of communication and the chemistry between the potential investor and the employees.

Beware of online profiles and posts

Investors will do a thorough due diligence of the owners and the key players. With the technology available, that also means researching the company on social media sites. Make sure that your company Facebook and Twitter pages are active and engaging toward the individual audiences. It is equally as important to look at the personal profiles of owners and employees. This may mean deleting inappropriate posts and comments or adjusting the privacy settings.

Go into the transaction with a realistic value of the company

If you undervalue, you will give up too much of the company for nothing. If you over value the company it can kill the deal. Hire an expert to get a real valuation — it will be worth the money spent.

Partnering with investors can be a great way to give your company the financial boost it needs. For many small companies, it may also be the best alternative to helping the business develop and succeed. Like any relationship, finding the right investor for your company can be challenging, but the better prepared you are, the greater chance for finding the best match.

For more information on how to make your business more appealing to potential investors, visit fswfunding.com.