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How to Find Investors for your Startup

by qiel

Being an entrepreneur is always perceived to be an easy task but more often than none; an entrepreneur is faced with multiple challenges of which the list could be endless. However, aside from the challenges of capital, location, rent and so on, topping the list of every entrepreneur is the means to get the startup investment which could majorly be provided by investors.

There are lots of people; I mean a tons of hundreds of startup founders who have approached investors and have gotten a capital NO for answers and not for any reason but for the fact that they have not been able to assure these prospective investors of theirs that they are in safe hands and that their money would yield profits and their investments with their (entrepreneur’s) start up will not be an absolute regret or a waste of time.  during the brief meeting with the investors, the obligation of an entrepreneur is to at convince the investors that the business been introduced is a good idea which is due to produce immeasurable results however, it is disheartening when the entrepreneur ends up saying, doing or acting someway that ends up ticking the investor off rather than getting them interested in the business.

Something we should all know is that there is no investor who wants to be on the losing horse. Nobody wants to gamble with their hard earned cash since there is no point in losing one’s money consciously on purpose and investing in startups can sometimes be likened to gambling and it sometimes could be frustrating although no one would gamble knowing failure and doom awaits their radical moves beforehand.

There is no how a startup wouldn’t need some good investment dollars. To avoid a NO at that business briefing with your investor(s), here is an idea on how to prepare yourself in such a way that your investors will personally want to invest in your startup right away.

Review and re-address this to-do-list at any moment when trying to secure funding from your investor:

Success Story; Proof of Your Potential

One thing you should know is that the need to proof your potential is very important when trying to win an investor’s interest. You need to be prepared to present evidence(s) that there’s possible benefits in your startup at least show that it has some traction. Share your success stories, what have you sold successfully? In case you have launched a startup before, share the idea behind the success of the start up. Believe me this is a test worthy enough to prove to your investor(s) that you genuinely are capable enough to handle the startup.

An investor once said; ‘Demonstrate to me that your business is something worth putting my well deserved money into and that this venture will buckle down for me as your organization has achievement.’

Team Turnoff; Inexperienced Team Members

Members of your team are very important as well, finding investor for your startup is as important as convincing your investors, when you build a team of inexperienced bunch who look like they are lagging behind in the area of experience needed to successfully operate a startup then you probably are off the chances of getting the interest of your investors. Thus, to be on the safest side and in order to avoid a situation where an investments tells you; “I actually like you and the concept of your idea but sorry, I don’t really like your team” it’s better to organize a team you can be sure of, whereby, team members has the right qualifications and discipline required for task completion, and also follow through on objectives.

The Unity Forces of Team Work

When team members don’t get along or agree on a decision made, it becomes an absolute headache finding an investor as the fact that co-founders or team members are constantly bickering is enough to create an uneasy feeling about you or the startup you require. It is important that everyone on your team have mutual respect, understanding and also get along with one another.

Secrets Not Allowed

While investors are sometimes feared by entrepreneurs seeking startup fund for the reason that they could go establish the business somewhere else should they fail to agree on startup while this prompt the keeping of some secrets by the entrepreneur, it becomes a bone of contention to some investors, they really want to know a lot. If the investor really wants to know, let them know, hiding things is a turnoff for some investors.

Trust; He’s Investing in You Not the Company

Trust is a very important thing, when you are meeting your investor, as a smart investor, he looks out for traces of integrity, can he trust your character, judgment mental skill, he’d look out for your leadership skill too because, the investor might seem like he’s interested in investing in your company but reality check, he’s going to be investing in You and you better be prepared, groom your skills and be sure you are prepare.

Clearly Analyzed Business Plan

A business model or a business plan is the most important document which should tell the investor a lot about the business including an idea on what the future of the business would look like. Your business plan should be impressive, analytic, straightforward, simple and explanatory enough to win the interest of your investor.

Evidence of profit

Preorders or signups for product and services are ways to show that people would actually pay for the type of products or services. Investors are always thrilled and moved by these and that’s why it’s important that you include it in your move.

Other reasons you might not be winning the interest of that investor includes but not limited to;

  • Lack of new or unique startup
  • In the event of discovery that the team leader / initiator/CEO is bossy and not open to suggestions.
  • Been defensive isn’t a good sign from you.
  • If the investor feels like he or she has to break the bank to finance your startup.
  • Being matured could be an attractive trait and one of the ways to exhibit this is confirmed by the way you handle rejection. Investors are always watching it doesn’t matter if they’ve said no.
  • Its best to approach investors through these two channels; either through referrals or personal recommendations from people who are familiar with you both (the investor and the one seeking startup).
  • Make your research and approach only investors involved in your field or area of specialization.

After following these tips/ideas, on doing your part and playing your role well enough when seeking startup from investors, showing your prospective investor that you understand the industry you are about to venture into well enough is very important just as much as you need to prove that you are responsible, you have a responsible team members, you know your work, it is profitable and that the future of the business is going to be very bright and attractive. If you can do your job well enough I think there’s no way an investor would deny you that startup fund because they see you as an opportunity!