Funding is crucial when it comes to startup. You need this money to expand your ideas and dreams to grow bigger and make an impact in the world. However, attracting investors to your startup is easier said than done. With this in mind, we will go over the proven ways to attract investors for your startup. Let’s get started!
1. Target the correct industry and provide real value
Most investors fall into specific sectors or industries. If your startup is in one of these industries, there should be plenty of investors that will hear your pitch. Investors will compete against each other if there is an excellent idea along with added value.
Investors want to know what they are getting out of their investment besides a good interest percentage. This may be in the form of a seat on the board of directors or another key strategic leadership positions. An investor may also try to help introduce you to other business contacts that help your business progress.
2. Put together a solid business plan
When you pitch an idea to investors, you will want to give them a solid business plan that gives potential investors an idea in terms of what exactly you plan to do. It helps that your idea dazzles them as they most likely have heard many other good pitches.
Be confident in your product and the delivery proposal. Show a prototype if you have it and don’t take no for an answer. Great business ideas that have potential to big money makers are a rarity, so persistence really pays off.
3. Show investors the numbers
Any amount of money you will be asking for should be accounted for. You should have a clear plan on how you are going to spend the money while showing how you intend to generate as much revenue as possible.
The point being here is that money should be raised for a clear purpose, whether it is going for expansion, product development, sales and marketing activities or something else.
4. Be prepared
Having a face to face meeting with an investor is a personal matter, and you should have thought of just about every question that they might ask you. It will be embarrassing if you have your presentation ready, but fail to answer the investors’ question about an aspect about your company. Make sure you analyze every aspect of your company as if someone will put it under a microscope.
5. Show the three c’s: commitment, confidence, and charisma
You should show your investor that you are 100 percent committed to your company by investing everything you own into your company. This shows an investor you are serious with your start up intentions and can’t afford to fail.
Your confidence and charisma should be in your own abilities to run this business and fulfil the business plan that was laid out by your company. Investors seek to invest in confident people who stand behind their initiatives.
You may think it might be a daunting task to attract investors for your startup, but it just takes the right process to get to your end goal.
Another option to give you an upper hand is raising financing against assets you already own. Asset-based loans through commercial loans Redlands can be a great way to get quicker arrangements for financing. It could be one of the quickest ways to get your startup up and running.