- September 25, 2017
- | 585
Attracting investors for any business is difficult, and it’s especially difficult for a startup business, but if you’re ready to go after investment, follow these 5 steps to ensure success:
- Know your product It is essential to have a strong, professional business plan. Just believing in your ideas isn’t enough, you need to back up your ideas with research and testing. If your business includes a product, have a working proto-type that you can present to interested investors. Show them that you’ve done your homework and know that your business is ready to go.
- Know your market Know your market before your presentation by doing thorough research. Have the proof on paper to show potential investors that your product is in demand and you know who the consumers are and how to approach them. If there is competition, show how you are different or better. Know the growth potential for your business. Have a marketing strategy ready to reassure your prospective investors that you know your marketplace and have a clear picture of the future.
- Know your investors In the same way you look for your product’s target market, look for your investors. Check out crowdfunding sites for access to different types of investors. Study the sites carefully to find the best fit for your startup business. This will help you concentrate your search, give you ideas for what they’re looking for, and help you save time and energy.
- Know your pitch Know your facts, rehearse your pitch so you know it well but don’t be robotic, anticipate investors’ questions and have answers ready. Know your numbers so you don’t make a bad decision on the spot. Be calm and be yourself but be professional. Most importantly, don’t be over-aggressive or defensive.
- Let your investors know you Tell them your personal story and show them your passion and enthusiasm. Show them you are reliable and know how to use funds appropriately. It is very important that investors know you won’t take their money and use it foolishly, and you need to prove it to them before they commit.
Today’s business world is fast-paced and constantly changing so if you are looking for ways to attract investors to your startup business, you’ll be a step ahead if you prepare yourself well in advance.
If you’d like more information on this topic, or others, contact us and we’ll do our best to help.