Five Tips to Become an Investor Magnet

4. Smart management: It is often said that money follows management. Of course, not every high-potential company has a complete management team in place, but the executives who are onboard should be able to work well together and have more than a little industry knowledge.

A deep understanding of industry trends and customer needs is vital. That kind of knowledge is reassuring for investors who are typically less involved in the operational side of business. "We don't have to know everything about the market, but we have to know that the entrepreneur knows," laughs Evans.

Investors are attracted to companies and CEOs with a vision of the future and the management team to implement it. A smart entrepreneur will know which way the market is moving and drive the company in the right direction.

"There are some things I am good at and some things I am not," admits Bold. "So in 2000, I got a CFO and a COO, and they set up systems." And good thing, too: The first thing his investors wanted to do was speak with his finance team.

5. Deal or no deal? In the end, this is perhaps the most important question an entrepreneur can ask himself or herself: If an investor calls and offers to buy in, am I willing to make a deal?

Bold says that he was ready for the benefits the investor offered but not necessarily the demands it made. "The [negotiation] process broke down a couple of times," he says, "but we were able to work through those things and put the deal together."

There are a hundred things to consider before agreeing to a deal: Can you arrive at a fair price? Can you accept the typical rights and terms that go along with an outside investment? Can you get along with the investor on a personal basis?

"A fair deal is when both parties are satisfied but nobody's really happy," laughs Bold. "A big part of [completing the deal] was having really good legal and accounting help. There were opportunities for [the investor] to get the better of me, but that didn't happen because I have really sharp people."

Of course, the investor has the same concerns about you. "The product and service could be terrific, the team could be great, but when we get to the deal terms, if the company is not interested in raising money, there's nothing for me to do," laments Evans. When opportunity knocks, you've got to be ready and willing to open the door.