One of the hardest things about starting a business is finding enough money to get your idea off the ground. You probably have very little in the way of funds and a limited amount of time to secure finance. It is hard to get a potential investor’s attention and it is even harder to sell your idea within the few minutes that you might have to do so. However, finding money for funding growth is usually just part of the business life and something that you should become accustomed to.
Just remember that every business started somewhere and below you will learn about some of the unique and inventive strategies that they used to draw investors.
Know Your Competition
One of the first and most important questions that your investors are going to ask is, what makes you different? You are probably not the first person to come up with the idea that you are pitching to them, so how are you going to make it an opportunity to invest in a unique business? If you just sit there with a blank look on your face when this question is prompted, you are probably not going to garner confidence.
You should research similar companies that are in the same field or industry as you, so you can have an appropriate and honest answer to this question. Your response needs to be show how your business is or will be differentiated from competitors, and what gives you the edge.
Knowing Your Investors
The same concept applies to your investors as well. You do not want to go asking an investor for money when he or she does not have any interest in the industryabout which you are presenting. Make sure that your investors are have worked in, or continue to invest in the same or similar fields as the one that the business you are trying to pitch to them is in. Simultaneously, make sure you both agree on how the business will be controlled, so you can determine whether your business relationship is likely to work in the long run.
Don’t Be Afraid To Follow Up
You should never be afraid to follow up with your potential investors. After the initial meeting, ask when you can expect to hear back from them, or how long it will take to make their decision. Keep in contact, using sending information they showed interest in as an excuse to contact. This will show the personal qualities you have to make the business work for them. However, don’t pester them regularly without reason because this could put them off investing in your business.
Be Convincing And Honest
The key to drawing attention from potential investors is to be honest and convincing. Many people make the mistake of introducing others to their business without actually being totally honest about the state of the business or their history.
Professional investors have a keen eye as a result of experience, so they will be able to spot someone who is keeping information back from a mile away. If you own a struggling business that is going nowhere fast because you do not have the funds to invest for it to grow, you will need to acknowledge the situation you are in, explain why you are in that situation and how you will overcome problems. However, it is crucial to not look too desperate either. Instead, hold your head up high and be honest, by telling every potential investor you meet or communicate with the true health status of your business.
Develop A Defined Marketing Strategy
Before you start your search for financial investors, you will need to develop a defined marketing strategy. The first step to creating a marketing strategy should begin with a customer issue. A successful service or product solves any issue that the customer may have so do research in advance to determine actually what the potential customer is looking to purchase. When meeting investors they will be interested in viewing your marketing strategy, before they even consider investing money into your company.
If you can pull this off, you will be well on your way to expanding your business into other markets, including the international market.
