Unless you’re in the enviable position of having the capital secured for your new business venture, attracting investors for your start-up business is considerably important. Running a new venture takes time and resources and you will need healthy cash flow in the early days until your business starts hitting and exceeding its bottom line.
In this post, we look at how to attract investment into your start-up business.
Create a Budget and Business Plan
Investors need to see that you have a market for what you do, have solid numbers in terms of outlay and revenue, and are ready to take the business forward. Ideally, you will have customers already and have a good feel for the market. Having a budget and business plan in place will give you something concrete to show investors, and provide substance to your pitch.
Before you approach a potential investor do your research. Try and ascertain the following:
- What kind of businesses have they invested in before? Are they similar to yours?
- What are they like as people? What engages them?
- What is their outlook on the world? Is it broadly the same as your own?
To some degree, social media is a good tool to conduct this research as will a few well chosen Google searches. LinkedIn will be especially valuable.
It is a good idea to connect to potential investors via social media, especially on LinkedIn. To increase your chances of forming a connection, post frequently on social media taking a positive stance. Be enthused about your new project and talk about what excites you. To this end, a few personal brand style blogs will help you considerably too.
Perfect your elevator pitch for your business, highlighting its value proposition. Practice this pitch to anyone that will listen until you can rattle it off without hesitation. When you come to pitching to an investor you will be able to speak with clarity and confidence. It is important that in this elevator pitch you get across exactly what your start-up does.
When you find an investor and you sell them on your elevator pitch and gain their interest, you will probably be invited to elaborate on your business idea. If this happens, go for it.
Be conscious of level when selecting investors. If you are new to the business arena you should target investors that have a passion for investing in the ‘new guy’, and target them. If you feel, however, that you have a potential multimillion-pound brand, then move up a level and try reaching out to that level of investor.
To get any form of traction you have to be persistent. In many respects, it is a percentage game. You talk to so many investors and you get so many positive responses, so stick at it and success will come your way.
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Author: Beata Staszkow
Beata is an established and experienced career coach. She has helped hundreds of executives find rewarding careers, and hundreds of businesses acquire new clients on LinkedIn. If you’re career or business is stagnating, Beata can revive it and take it to new heights. Schedule your consultation today.