Having a revolutionary idea for a million-dollar company is a great place to start, but without money you will find you won’t get far. Bringing in investors to give financial aid is necessary for many startups. Finding the right investors can be tricky, but with some effort you will find the funding you’ve been searching for.
Determine What You Need
Take some time to figure out exactly what you need money for. Renting a building or starting a product line is a good place to start, but it’s important to think long term. Try to anticipate how long it will be before your business begins making revenue. Requesting additional money for any bumps in the road will ensure you have breathing room.
Now is also the time to form a corporation. This will help you and your family should anyone feel they need to sue you. Your expenses will also be seen as more legitimate, giving you a boost in the eyes of potential investors.
Identify What Makes You Special
You know that your business idea is something the world has never seen before, but can you explain that to someone else? Spend time writing a business plan that will set you apart from others. Be sure to show potential investors some numbers predicting your revenues.
In some cases, the thing that will make you special is a product or idea that others can swipe to make money for themselves. If this is the case, protect yourself and your business by obtaining a patent for your idea. Patenting your property will also make your product more desirable to investors.
Before you contact anyone, it’s important to figure out how you will explain your idea. Creating a presentation is a common and effective way to do this. Explain why your product is worthwhile, who may be interested in it, how much it will cost to make and how much revenue you expect to earn. Package this in an appealing way and take it with you when you talk to potential investors.
Think About Who You Know
An investor does not need to be a man in a suit behind a desk. There may be people in your life who are willing to invest in your business. Your friends and family can be a great support, but if you do decide to take their investment be sure it’s viewed by both parties as a business transaction, not a personal one.
If you’ve exhausted your list of personal investors, start thinking bigger. Are there any banks or investment advisors you could talk to? These people can be great sources for referrals to other investors and they may even offer you a loan themselves.
Finally, take some time to network. Attending Small Business Association events is a good way to meet potential angel investors. Something as simple as online research can turn up people who may be interested in what you are presenting.
Present Your Ideas
Contact the people on your list to set up meetings to talk about your idea. Bring the presentation you created and explain your idea confidently. Finding investors can be a nerve-wracking experience, but don’t let your discomfort show when making your presentations. Investors are far more likely to trust their money with a confident business owner than one who seems unsure of his product.
With a solid idea and these steps, finding an investor for your startup is within your reach. However, the road does not end there. Be sure to continue to work diligently in order to achieve the potential your investors saw in you. Don’t forget – an investment is not a gift. Any money you receive will be expected back with a little extra on the side. Keep your investors informed and your startup growing and soon you’ll have the business you dreamed of.
Source: Getting Investment For a Startup, site: Proformative.com