If you have a profitable business or business plan for your startup/company, and you know how much funding you need, then the next step is finding investors that work for you. This can be a lot more challenging than you might initially think. Here are 5 simple tips on getting investors into your business.
Online fundraising platforms are a good opportunity but sometimes there’s nothing better than a face-to-face conversation. A trade show will give you just that. Research the B2B fairs focused on your sector and select one featuring a platform/special event which connects young companies and investors. Then sign up and prepare to impress potential investors with your brand and services.
If you wish to take it a step further and really stand out – especially if you have an innovative product to present – is to enter a competition. Most trade shows have various competitions meant to highlight fresh ideas and support young businesses. Winning will certainly increase your chances of being noticed and funded.
Contributors: Diana Vicheva from ExpoBeds
In finding investors for your business the first step is knowing your business. You will already have a business plan with your demographics laid out. From there you will need to identify who stands to gain from the success of your business. This differs from your demographic in that your investors may not have a need for your business, but they may invest in the industry, the property, or the brand.
Don't be afraid to go to competitor's investors, if you believe in your business and can back it up, network with anyone who will listen. A good investor will be able to identify a profitable investment, but it is your job to sell. What makes your business bound for success? Identify risks and assets, and approach investors from a realistic but exciting standpoint.
Contributors: Nate Masterson from Maple Holistics
The best way to get investors for your business is to get customers that pre-pay for your products or services.
Many companies have raised capital and gone belly up. The key to successful financing is to accelerate value creation. There's no better way to validate that you're creating value than to raise funds from your customers. Customers are the only constituency who can guarantee you’ll stay in business.
Any funds needed to accelerate growth beyond customer prepayments could be provided through equity such as an angel investor or a venture capitalist or through debt such as a bank loan or a type of bond offering. Before raising these funds, it’s essential to have plenty of customer funds first—so that you get the best deal. By the best deal, I mean staying in control of your company.
Contributors: Eisaiah Engel from Founder Friendly Standard LLC
Fundraising made easy: 38% of startup founders report raising money from their friends and family. What would be the obstacles to stop family and friends from investing in you latest venture? Lack of extra liquid assets to invest.
The simple fix is to encourage potential investors to get a Rocket Dollar account. Rocket Dollar caters to individual do-it-yourself investors. Rocket Dollar accounts allow those people with multiple IRAs, with old 401(k)s, to fund either a Self-Directed Solo 401(k) account or a Self-Directed IRA. Once their accounts are open, friends and family will have checkbook control of their retirement money to invest in what matters to them.
Contributors: Henry Yoshida from Rocket Dollar
Debt can magnify mistakes however when used wisely it can be a powerful fulcrum. When we launched our business two years ago we had no money and no outside capital to get started with. Like most tech start ups we went on the fundraising circuit talking to angel investors and venture capitalists begging for money to get started. However our vision was just to broad in scope and luckily we got turned down and told no over 40 times.
Contributors: Zach Hendrix from GreenPal
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