You have decided to take the plunge and look for external investment to help grow your business. You’ve prepared your business plan, come up with your 60-second ‘elevator pitch’ and have been busily networking, telling whoever will listen why they should place their faith – and cash – in you and your business.

However, as almost every entrepreneur finds, it doesn’t matter how attractive you think your proposal is, it’s pretty much inevitable that you’ll have to endure a fair few ‘No’s’ before you get that all-important ‘Yes.’ And while every investor who turns you down will no doubt give you useful feedback, in many cases their refusal to invest is due to you failing to reassure them about what’s really concerning them. Having worked with many different investors, here’s my take on the top five things that investors really want to know.

1. How credible are your projections?

To what extent is your business model proven? Many start-ups struggle to raise investment for this very reason so you need to come up with ways to combat this, ideally by having actual sales (even if small) or, failing that, by conducting detailed market research or by running market trials to prove the commercial viability of your business concept. And, above all else, nothing gives credibility to your plan like putting your own money where your mouth is and investing alongside everyone else.

2. How risky is it and what’s the worst case scenario?

Put yourself in an investor’s shoes. Your business plan may look rosy but what happens if you don’t achieve those figures? Could the investment be secured against any assets or are there certain contingency plans that could be adopted if the business looked like it was going to fail? I would recommend pulling together a worse-case scenario, as much as for your own piece of mind as for that of your potential investors.

3. How much will it really cost me?

It sounds obvious but actually the amount an investor may invest may not be what you are asking for. The HMRC has a range of tax breaks designed to encourage small business investment and you’ll need to be aware of these as they may provide an added incentive for someone to invest. Conversely, an investor won’t just look at how much you’re asking for in this round, they’ll also consider how much further investment you’ll realistically need to deliver your plan.

4. When and how will I get my money back?

Most investors look at a window of 2-5 years and will expect to at least double or triple their investment, depending on their perception of how risky your business is. Also give some thought to how they will get their money back. Are you planning a trade sale? Further refinancing? Is there a planned dividend stream?

5. How experienced/ competent is the team?

It’s an old adage but still very true that people back people, not businesses. Make sure you and your team have the right skills and experience to deliver your plan. If not, now’s the time to bring that expertise on board and if cash is tight consider offering them a slice of the action (i.e. via shares/options).

To get a better idea of what makes a business plan investable, I’d suggest taking a look at the various crowdfunding sites such as Crowdcube.com and focus on which businesses are succeeding to raise cash. And, above all, the best way to allay an investor’s concerns is to put yourself in their shoes and take a long, cold look at your business plan. If it wasn’t your own business, would you really invest your hard-earned cash?