65% of entrepreneurs confessed that they are not fully confident that they had enough money to start their business, according to the report. But a trait that is common in all successful entrepreneurs is courage. Now let's consider that you have started your business that looked promising. It is well thought out, and the stakes for success are high. In the last discussion, we talk about how finance is needed for numerous purposes and different purposes need sources of finance that are most suitable to them and their requirement. When choosing an appropriate source of finance some factors have to be considered and analyzed properly.
However, you worry about not being able to keep it running forever. You have considered getting investors on board. But do not know how to convince them to invest in your startup business. A business owner needs to understand that alone believing in your own idea isn’t going to get you anywhere, you have to understand the need how to create that same Believe in your target audience's mind 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.
In this discussion, we would like to explore some practical tips from various investors and successful entrepreneurs that might help you attract investors to your business and raise investments to scale your business.
Building strong network
Building networks is the most essential way to get support from other businesses. For eaIt can be a struggle for early-age startup businesses ld networks that they can trust. Investors might also find it hard to trust your business idea, especially when their money is involved. So, when you are meeting some investors, make sure that you make a good impression cause you will be representing your idea.
The best place to find potential business partners are during events, conferences, and social media like Linkedin. Like how you ultra carefully 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 and move toward the direction of growth and sustainability.
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 only after you have asked for their advice.
Remember not to be hasty when choosing investors.
Pitch an Effective Business Plan
An idea might be unique or innovative but a business plan is what makes it effective. Your business plan must include details about your target audience, sales forecast for coming years, a problem which you are going to solve, go-to-market strategy, and your plan for scaling the business, for more detail check out the ultimate pitch deck guide.
When you working on creating a pitch that will attract investment, make sure that you put yourself in an investor’s shoes. Try to think like them. If you were an investor, ask yourself what would convince you to invest in a startup business. In simple words, works on building trust and confidence in your business idea.
It must reflect 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.
Deep Analysis of Your Potential Investors
One of the things that you need to know about your prospective investors is their background, not exactly suggesting the place of birth but trying to know more about what kind of businesses or projects have they invested in.
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. The aim is to understand if they support such a project or idea, are very much involved in the management, or provide mentorship, etc.
Before meeting with the investors, take time to know them well first. Knowing how they perform in the market will help you measure their capabilities to help you and to connect better in terms of communicating your idea. On the other hand, you would also know what benefits they can get from your business.
Identify relevant reasons why you would want to invest in your startup.
Show How Investors May Benefit from Your Business
Rather than focusing on persuading investors only for your own gain, as a business owner you need to put more emphasis on building trust in your business. Don’t make such an assumption that they are doing you a favor, 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. For that, you need to have a good hold of your finance.
Finding investors for your business is not that tough job if you know about pitching. If you can show better, they will invest better. However, each and every investor have his own unique way of dealing with entrepreneurs. Some invest in the startup idea, some invest in the business plan, whereas some invest in the team. So, you either need to get better in all the aspects or pitch to the investor which suits you the most.
At flyboat, we have a founder grooming program that involves Mock founder pitch and expert feedback, narration notes provided recorded pitch video provision. A highly customized financial model with refined revenue buildup/working capital schedule/asset schedules. (only 30% automation) and In-depth market research including Public and Transaction comparable analysis (subject to availability of data)
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