This article is written to give you some tips on how to find investors for your business. We hope you follow the guidelines and seek investors for your business.
Starting a business is a very great idea, not only to you but to the world around you because, irrespective of the motive you use to start that business, you will be meeting a need.
The big problem often comes when you have a multi-million naira business plan but you lack the required capital to support the business.
Often, such business plans are swept under the carpet. Therefore, before we get into the main discussion, does the above statement always have to be so? Do good and productive business ideas need to die because the visionary does not have the required financial strength to fund the business?
Here in this article, the above questions will be answered, you will be shown on how to find investors for your business, also people who will be ready to invest their time, energy, money and resources into the business.
All that is needed from you is not just to read this article but to get up to work so that every line written here will be played out till your business idea is listed in the stock trade.
Before we proceed, it is important to know that your investors might surely not be strangers, they can equally be your friends and families.
You need these people for your business at one point or the other. Now let’s move on to how to find and probably attract people into investing in that business idea.
Most Important Tips for Finding Business Investors for your Business
Here are the 6 Most Important Tips for Finding Business Investors for your Business:
1. Understand what you want
A lot of businessmen are so fast to say “I want Investors” but they seem not to know that an investor could either be a venture capitalist or angel investor.
What is the difference between a venture capitalist and angel investor?
Angel investors invest their own money into your ideas while Venture capitalists invest other people’s money into your business and of course, both investors do so after they have vigorously studied your business plan, pitches and SWOT analysis for the business but the venture capitalists do a more thorough studying of the business since they invest more and they use other people’s money for the investment.
It is only when you understand what you want that you’ll be able to fully know where to go to get investment for your business.
2. Avoid Mass Media method
When you send emails to investors, be sure to avoid mass messages. Fully personalize each of the messages you send and don’t create room for suspicion of any sort linking to the fact that your message was sent to the mass.
Write out your message in plain simple words and as direct as possible if you want to get them to invest heavily into that idea.
3. Study thoroughly
When searching for investors, you need to know that you are not the only person looking for them, a lot of other peoples are also looking for investors for their businesses and they have probably been at the office of that person you want to visit.
To get it right at first attempt, you need to know all you can know about your potential investor, whether venture capitalist, angel investor or family and friends.
The proper way to get funding from a family or friend is not to ask directly. This will scare him or her away.
What you need to do is simply submit your proposal to him/her and ask if he or she has anyone who will be interested in funding such a business.
If he/she has an interest, he/she will pick it up and if it doesn’t, you will know. The key thing, however, is to research thoroughly before knocking on that door.
4. Create a Rapport first with your potential investor
Don’t just come out of the blue and ask for funding, no company does that. You need to look for a common ground on which to take off.
Even in business, the relationship is the key to maximizing survival and growth. The earlier you understand this, the better for you.
If you have an investor in mind, try as much as possible to look for how you can connect with him first before meeting him face to face.
That means you need to know some details about him such as his interests and dislikes. This will give you an edge in getting your desired result.
Also, as much as possible, avoid going to so many people at the same time, the key here is a focus, follow one (or few) persons until you succeed.
5. Avoid third party interference
There are only a few business dealings that need a third party. Getting investors into your business requires that you or your business knock on the door of that potential investor and not a third party doing it for you.
The best you could do for your business is to take the initiative and knock on the door by yourself and not looking for a third party. Third parties will only eat up your resources and produce little or no results.
See also: Tips On How To Study For 15 Hours A Day
6. Do the following too
Your business summary has to be eye catchy, let every line you put down be interesting enough for the investor to read the next.
Have a business plan handy, never underestimate the power that a business plan has. It is true that investors oftentimes reject your business even before reading your business plans but in juxtapose, they will not invest in your business without reading your plan.
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