If you want to give your new business its best chance of success, you need to secure the right type of financing. Many companies may opt to use bank loans that are designated for specific purposes, but other businesses need access to flexible financing that can be used in a variety of ways. Because the medical field is constantly evolving, this is especially important for companies in the healthcare industry that need to adapt funds when new technologies hit the market. One way to find flexible financing is to seek out an investor. Here are five tips that can help you find the right person to finance your business.

Know the Facts

You need to make a good impression on the investors you choose to approach.  They will have many questions about your business, from your marketing strategy and current profits to the amount of money you are seeking and how you plan to use it. Appearing unprepared for your meeting is the best way to dissuade people from investing in your company. Similarly, having your entire pitch written down so you can just read the facts to potential investors does not make you look like a good investment. Take the time to learn all of the facts about your company so you can answer any questions about the industry or your products and business plan.

Do Some Research

It is easy to find a list of venture capitalists who are looking to invest in new businesses. However, because every investor has a unique portfolio and offers various benefits for your company, you need to do a significant amount of research to find the person that will be the most beneficial for your company. Most investors have diverse portfolios because they don’t want to finance multiple companies in the same industry that will just be competing against each other. When you find a potential investor who could be a good fit for our business, check to see if he or she finances any other companies in the field of healthcare. For example, S-Cubed Capital’s Mark Stevens primarily manages investments in real estate, technology and agribusiness. Since he currently doesn’t have a healthcare company in his portfolio, he may be an excellent choice for your company.

Customize Your Pitch

When you get ready to approach investors to fund your new company, you will need to develop a strong pitch explaining why it is a good idea to invest in your business. Because you’ll probably have to talk to several potential investors, it is a good idea to create a generic pitch that highlights the important facts about your business. However, before you actually make the pitch, figure out a way to customize it so it appeals to the investor you are speaking to. If the potential investor is an advocate for philanthropy, you want to highlight the philanthropic efforts of your company. If the potential investor has a family member with a disability and your company produces tools or medications to help manage and overcome that disability, focus your pitch on how your products can improve quality of life. If you take the time to customize your pitch, you are more likely to capture and hold the attention of the venture capitalists you are speaking to.

Be Willing To Negotiate

You probably won’t receive the exact amount of money you are asking for in your pitch so you need to keep your expectations realistic. You may have to trade a stake in the ownership of your company to receive the financing you are asking for. You may also need to agree to pay equity or royalties. Walking away from the investor because he or she will not give you exactly what you are asking for is never a good idea. Instead, you should expect to negotiate. Ask for more money than you think you will get to start off but keep the amount fair and realistic. If you aren’t satisfied with the amount the investor offers in return, give a second offer. It is a good idea to know what your limit is so you don’t end up with a bad deal, but learning how to negotiate can help you get the financing your business needs.

Keep Trying

Your pitch may not sell to the first investor you approach. You may have to speak with other venture capitalists on your list to find one who believes in your company enough to invest in it. This can be discouraging but the important thing is to keep trying. The more people you talk to, the better your chances of finding the right investor.

Financing is a big aspect of success for any business, but if you own a company in the healthcare industry, flexible funding is essential. By using these five tips, you can find an investor who will give your company the funds it needs to thrive.