Your startup is going well so far but it’s time to expand and the only way to do that is get investors involved. You might have the best business in the world but without the right approach it’s still easy to get knocked back. A well-honed plan can go a long way in successfully convincing investors that investing in your business will be worthwhile.
1. Define Your Needs
You have to clearly understand exactly what you need to get out of investors. Yes, money but is support, knowledge, marketing or other resources critical as well? This way you won’t be wasting your time with unfit investors
2. Business Plan
Investors are not just going to write blank checks, you need to show them exactly where you forecast your business to go. Make sure it differentiates from your competitors to persuade investors that investing is a no brainer. Overall it helps potential funding sources have an understanding of financial benchmarks and where their money will be spent.
3. The Investors
Please do NOT just join forces with anyone that has the cash. Think carefully about the compatibility between your business and the investor. It’s not a bad idea to network with others in the industry to find someone with similar goals to you.
4. Get Advice
Talk to some of the experts before trying to do everything on your own. Talk to bankers, investment advisers or accountants to get advice on what your best options are. These professionals know the ‘ins and outs’ on what and what not to do so don’t be afraid to ask.
5. Don’t Be Boring
Investors have heard pitches thousands of times before so try and stand out from the crowd. One good way is to personalise it by telling them a story and give them a bit of background to engage them. Doesn’t need to go for too long but just to give them a bit of context and spark interest.