When you interact with lots of entrepreneurs who are legit and credible, you will realize that they are planning to start a business, but they struggle to fund their ventures. It is easy to think that there are ready investors like what we have seen over the years in Silicon Valley, and think that the same is going on across America; that is not the case.
Although it is difficult to raise money outside the major tech hubs we know of, it is possible to secure funding for your startup. We are going to look at five tips that can help you secure funding for your startup.
Do what you plan to do
Investors do not like excuses. The most important part is to make investors feel that you are committed to the task no matter what. Investors trust money to people who prove that they can do a lot with little money; they are very few, and you can be one. The best way to show that you are formidable is to be honestly formidable. Ensure that you get things done.
Start small and build your way up
If you want to open a restaurant and you can’t afford it, can you afford a food truck or a pop-up? Network and work in a commercial kitchen where you can specialize in some meals and deliver them personally to offices with a food truck, instead of going for Gartner MDM solutions on the onset when you have not done much to prove you have something to build as a business. When you start out, your goal is to prove that you can add value to the product or service you are delivering to people, and not to build a huge business. Once you prove that you can deliver, investors will help you to grow.
Make a small number of people love you
For the product or service you are offering, make three of your customers fall in love with you and your service, and grow your fan base. Work to build a community of customers who are loyal, and they love what you are offering. Once you decide to grow, you will get support from your pool of customers, friends, and the people who will be introduced to you by your loyal fan base.
Ask for advice and not money
Wealthy people tend to receive a lot of requests for investments opportunities, and it gets annoying. Imagine you are a wealthy investor, and a stranger pitched a business to you and asked you to invest in it without even knowing more about you. This is being treated like a sack of money instead of a human being. When you carefully look at people, you will get decent humans helping promising founders who have proof that they can get things done. What you have to do is to create relationships, and look for mentors who have respect. After a while, they will likely make their first investment.
Avoid being ‘salesy’ or superficial. The noblest thing you can do to build your relationship with investors is to be open and upfront with your investors about the struggles and challenges you are going through. When you convince an individual to invest in you, its all about trust, and the faith that you will be moral in your actions.
Consider going for equity crowdfunding when you want to invest
It is now possible to raise up to $1 million from your family and friends if you are raising money for a startup. If you are looking to incorporate technology like the Gartner MDM in your business, you will need to know how much you need to raise. Equity crowdfunding, unlike Kickstarter, allows people to invest in loans, stock, or revenue split.
If you rightfully follow the tips we have described above, you will certainly find at least one investor who can invest some money with a set of terms. Once you get to this point, go for an equity funding campaign with a minimum target of like $20,000, and then can go to massive goals like raising $250,000, or $ 1 million later on.