Do you have a great idea for a new business? So many ideas die before they ever see the light of day because the people behind them don’t have the funding to turn those ideas into a business. Even if they get the idea off the ground, they may not have the capital to help a successful business grow. If you have a great idea that you want to turn into a thriving business by bringing in investment capital, this article is the perfect place to start. Here are four tips that can help you find the right investors for your startup:
Be Persistent
Startup founders need to be persistent; do not give up after your first rejection! Keep reaching out and you will eventually find the right investor. Not every investor is a good fit for every startup. Shark Tank is a great example of how some investors gravitate toward certain products or industries that are a good fit for their knowledge and skill set, while others will completely reject the same idea. If you pair your product with the right investors, your chances of getting an investment are significantly greater. Seek experienced investors that have previously invested in your market or in similar types of products, and don’t give up!
Show Your Track Record
Investors want to see a track record of your success before they invest in your startup business. A solid track record shows potential investors how serious you are about your business and that you know what you’re doing. Put your dedication to your idea on display. If you have industry experience and knowledge, make it known! Investors want to see that you not only have a great idea, but that you have the skills and experience to execute on it.
Have a Clear Vision
Successful businesses have a clear vision. Investors want to make sure that the startup company and its founders know exactly where the business is headed before they invest in its future. Investors need to know your long-term vision for the company and if you can’t clearly communicate your vision to them, they are far less likely to invest their money with you. Once you have a long-term vision for your startup, break it down into attainable bite-sized steps and goals that build a roadmap. This roadmap needs to be realistic and attainable. At Seedology, we’ve seen founders develop massive ideas that lack actionable steps and clear vision; this is a red flag for investors who will view the vision as impossible if presented this way.
Have a Plan to Make Revenue
Investors want what everyone wants: a return on their investment! They don’t just want an idea that sounds good, they want to invest in a startup business that makes money. Your startup doesn’t have to make millions today, or even bring in revenue yet, but it has to have a clear plan to make revenue in the future with the help of the investor’s capital. The days of the dot com startup with no revenue model are long gone. If you are currently turning a profit, that is excellent, highlight that. If you can prove that you can multiply your current profit 5x or 10x with their investment, even better! That is what investors want to see and will be willing to pour money into.
Investors are smart and they want to make money. They are going to invest in people, ideas, and businesses that will help them make more money. Make it very clear how they will get a return on their investment in your startup. If you can prove your idea has a clear vision and the potential to make money, and do it better than other opportunities an investor is evaluating, you’re on the right path to gaining investment in your startup.
