Startup business article and permission to publish here provided by Priyank Sharma.
So, you have started your business that looked promising. It is well thought out, and the stakes for success are high. However, you worry about not being able to keep it running forever. You have considered getting investors. But do not know how to convince them to invest in your startup business.
There are several promising startups that did not make it in the market. The main reason why startups fail is a lack of funding and resources. This is also why convincing investors to invest in your business is important.
Here are six (6) ways to attract investors for your startup business:
Build Strong Networks
Building networks is the most vital way to get support from other businesses. For new businesses, it can be a struggle to build networks that they can trust. Investors might also find it hard to trust your business, especially when their money is involved. So, when you are meeting some investors, make sure that you make an impression.
The best place to find potential business partners are during events and conferences. Like how you meticulously look for a life partner, you should also do the same with business partners. See if they can help you not only through financial assistance. Look for someone that will make your business stronger so that it will last longer in the market.
Choose an investor who will be willing to give you advice. Someone who will help you scale up your business. In some cases, investors help startup businesses after you have asked for their advice. Remember not to be hasty when choosing investors.
Deeply Research About Your Potential Investors
Before meeting with the investors, take time to know them well first. Knowing how they perform in the market will help you gauge their capabilities to help you. On the other hand, you would also know what benefits they can get from your business. Identify relevant reasons on why you would want to invest in your startup.
One of the things that you need to know about your prospective investors is their background. Know what kind of businesses or projects have they invested in in the past. By doing so, you would know if your potential investor is a good fit for your business. You would also identify if they are the kind of investors you need for your business.
Pitch a Realistic Business Plan
After finding your potential investors, create a pitch that will attract investments. When you make a pitch, make sure that you put yourself in an investor’s point of view. Try to think like them. If you were an investor, ask yourself what would convince you to invest in a startup business.
Present a business plan that can be achieved by doing realistic steps. Also, put in mind that investors do not only invest in your business but also in you. Be confident and show them what you are capable of. That way, they will see you as someone reliable.
So, before you present your business plan, make sure that it is credible enough. See to it that it will be hard for investors to resist your offer. Also, reiterate to your investors about what they can gain when they invest from you. You can also involve your investors in planning.
But make it clear to them that you are still in control of the business. You can actually visit platforms that can help you provide the best business plan template for your business plan.
Join a Seed Accelerator Program
Joining a seed accelerator program is advisable for a newly starting business. Especially those that do not have any connections yet. It is like a boot camp that offers mentorship, training, and seed funding. These programs will help scale your business. It provides startups necessary assistance to help businesses to thrive.
You will be given the chance to work with other startup companies. Thus, it offers a perfect opportunity to widen your connections in the industry. When you join a seed program, you will receive funding. You will also get a badge that will give you the privilege of easy negotiations with investors. The badge will signify to the investors that you are a skillful and reliable business owner.
Show How Investors May Benefit from Your Business
You do not persuade investors only for your own gain. Investors invest in you because they can see potential benefits from you. So, when you are pitching your business to potential investors, show them a return on their investments. Demonstrate how you will give them results and when they can receive their gains.
Create a Reputable Brand
Investors do not just invest in any startups. They see to it that their investment is not a waste of their money and time. That’s the reason why startups need to be able to create a reputable brand for their business. Having so will give you ease in attracting your investors.
When you show investors that you have a good record in the industry, they will see it as a secured investment. Through branding, you may also have to show a little story about yourself and your business. Your journey will help in catching the investors’ emotions. Let them know you and build a certain level of attachment to you so that they will invest in you.
Act like how suitors convince their love interests so that they would learn to put their trust in you. That is how you should approach investors as well. Make them trust you by showing them a piece of who you are. You can do it by marketing yourself and your business on different platforms on the internet. The more people you attract, the more investors will take interest in you.
The biggest fear for startup businesses is failure to infiltrate the market. It hurts not being able to show the industry what your business can offer. Most businesses fail because they do not have enough investors. Good thing there are legal cashmart lenders like Yishun money lender. They help business owners get the needed funds to boost their growth. If you can’t get enough working capital, then this is also a good way to keep the business rolling.
So, if you are a startup business owner, follow the six (6) tested ways to attract investors. And you will surely get your business running.