So you have a great business idea. Or, maybe you already have a running startup. But you need a little help with funds to ensure continued growth. This is where investors come in. Selecting the right investor to fund your business' continued growth is an important, and sometimes, difficult decision. Here are five tips to increase your chances of finding the right investor.
1. Have a business plan.
A business plan is a critical part of finding an investor. Your business plan should have all key areas mapped out - a clear explanation of your product or service, market size, target demographic and so on. Include accurate and realistic financials and market research to back up your claims. This will show investors that you are serious about your business and that you understand the market
2. Do your research.
Make a list of potential investors you'd like to pitch to and then learn everything there is to know about each one - their ideals, past investments etc. The more you know about an investor, the better your chances of getting help from them.
3. Rehearse your pitch.
You never know when you'd have the opportunity to pitch your business or idea to an investor, so it's best to always be prepared. Your pitch should clearly state your offer, your business and what makes you and your company unique. Rehearse and re-rehearse your pitch, but, it is best to do so with a friend you trust will give you honest feedback
4. Know what you need.
Investors can offer you other benefits besides money. Know what you need and what you can gain from potential investors. Also, make sure that you have a real need before trying to raise significant funding
5. Be focused.
Investors don't want to invest in your business only for you to be sidetracked by other ideas after. Focus on the important things when making your pitch to investors. Point out what you are offering so that investors know exaclty what they are getting
Implementing these tips can help you find the right investors for your business and turn your startup dream into a fully funded reality.