8 Ways To Find Investors For Your Startup
What many greenhorn entrepreneurs fail to acknowledge is that having a good customer base reduces the reliance on investors
Starting a business venture is one of the most thrilling decisions anyone can make. Many people revere entrepreneurs for their resilience, discernment, and overall courage. Although social media has painted a glamorous picture about starting and owning a business, there is a lot more than what meets the eye. One of the most significant hurdles entrepreneurs face when starting is raising enough capital for their venture. There are countless expenses to consider when starting a business. Coming up with these funds can be a tall order for a sole entrepreneur. Even so, business owners can benefit immensely with the help of investors.
Utilize Fundraising Platforms
For those who may think that raising funds is not enough, remember that GoFundMe, one of the biggest online fundraising platforms, has made over three billion dollars since its inception. Fundraising platforms are also known as crowdfunding sites. Over the years,these websites have become more sophisti cated. Plenty of accredited investors and financial institutions such as banks are prevalent on such platforms, searching for new ways to dispense capital. Even so, there is a learning curve involved, as not all fundraising platforms are the same. Here is a quick look at some of the most common ones.
Donation Based Platforms
With donation based fundraising platforms, donors usually don't expect the money back. When you use such sites to find funding for your project, anyone can donate money towards your venture. For this reason, many charitable organizations and nonprofits also use donation based fundraising platforms to get financial assistance.
Equity crowdfunding is the complete inverse of donation based crowdfunding. With these fundraisers, investors or donors provide financial aid in exchange for some ownership in the country. In most cases, investors get equity in the form of shares.
Apart from the wheel, the internet is considered one of the greatest inventions of humankind. Its byproduct, social media, can be an excellent tool for businesses to gain much needed traction. For this reason, social media can be an indispensable tool for attracting investors. What's more, there are plenty of tools available to help you through the process. Therefore, you don't have to rely solely on your know how to get the attention of your desired investors. Furthermore, direct messages are also powerful when you're seeking financial aid. You can reach out to suitable investors through their social platforms, making it easy to connect and pitch your business idea.
Get Your Products & Services Noticed
What many greenhorn entrepreneurs fail to acknowledge is that having a good customer base reduces the reliance on investors. For this reason, getting enough notoriety for your products will place you in a better position for sourcing outside funding. Moreover, given that investors are just as eager to make money as entrepreneurs, they're more likely to get behind a business with a considerable client base.
Attending & Participating In Corporate Events
Brand awareness is paramount to get more traction for your business and attract investors and customers alike. Therefore, bagging a suitable investor is mainly pegged on getting noticed by them. Attending and participating in corporate events is perhaps the most sure fire way to achieve this. Such functions will provide you with an opportunity to interact with potential investors and pitch your business idea. You can also go the extra mile and attend functions that may attract potential investors, even if they're not formal.
Make Use Of Startup Accelerators
Another great way to find investors for your business is by signing-up for a startup accelerator program. In simple terms, a startup accelerator program helps budding entrepreneurs build solid startups through mentorship and other assistance. There are plenty of startup accelerator programs that accept serious entrepreneurs. Although you need to be accepted into such programs, the benefits are well worth the effort. Typically, after attending such programs, you'll have an opportunity to pitch your business idea to a group of investors. If you're accepted to join a startup accelerator program, you'll be well equipped to handle investor pitches and presentations.
Try A Different Approach
While most investors are usually genuinely interested in your business, the bottom line is their ultimate consideration. For this reason, instead of cold calling investors and begging for financial aid, you can try a different approach. For instance, you can choose to ask for advice as a hopeful entrepreneur. Doing this will help you build a relationship with the potential investor before you pitch your idea.
Although many people are aware of the power that blogs and websites have, not many people are harnessing it. One way of doing this is blogging about your business and the thought process behind every choice you make. Doing this will enable potential investors to understand your business. Another way is by interacting with blogs made by these investors or engaging with them in blogs that they follow. Such an approach will help you slowly gain their interest before you can pitch your business venture.
Pitch Your Return On Investment(ROI)
When looking to win over investors, you need to sell them your idea. One of the most effective ways to do this is by explaining how your investors will personally gain from funding your project. While it's tempting to want to talk about your business in length, it would be more productive to tell the investors what is in it for them.