It can be difficult for a company to maintain its existence without financial support. But there are thousands of startups and developing companies thirsting for money, how can you highlight your team and stand out from every other startup and new business?
These several points that must be noted:
- Set up clear goals
As a leader, you have to know what you want, why you need the money, and where you will use the money. The clearer you are about your business, the more attractive you will be to the investor. Basically there are several goals that you should have in mind: you need money to develop the first version of the product and get it to market; to open up the market, to improve the competitiveness of the product, and so on. Before you can convince an investor about the importance of your company you need to make sure that you understand fully where you are headed.
- Organize a good team
A good team means a profitable future, a company without prospects is unable to attract investment. Even if you are a good leader, an investor is always concerned more about your team composition. If your members are experienced in your business field, this can add points to your team to more easily catch investors’ attention.
- Always be professional
You have to be more professional than an investor to attract him to invest in you, no matter what industry, or in any case, unprofessional people often don’t get the favor of others. When asked about industry analysis and understanding of competitors or your company’s business data, you must answer fluently and clearly.
- Arrange investors by importance to you
You need to know who is willing to pay for your talent, but to be clear, advance preparation is necessary so that you can be more effective and prevent wasting time from asking every investor. This preparation includes doing your research on potential investors before meeting with them.
- Did the agency invest in your business field before?
- What investment does the agency have done in this field?
- Is there any competition between your project and the project that the organization has invested?
- Does the organization have experience and knowledge in the field of entrepreneurship?
After you’ve done this, you’ll need to contact the investor or institution prior to meeting with them, which will increase your chances of success. Send project profiles to them, if they are interested, find opportunities to meet and communicate with them. It should be noted, however, that even if an investor/institution is interested in your project, it will take several conversations before the verbal intention is given. Therefore, try to maintain a good interaction with investors and agencies throughout the entire process.
- Replay the process
This is the most important step and the most easily overlooked step. This move will make you more flexible, knowledgeable and save time for your next investment endeavor. You need to pay attention to the process you just completed and consider where you went wrong:
- How long does the whole investment process take (days, weeks, months)?
- How many investors / agencies have you contacted in the process?
- How many denials of investment have you received? Why?
- How much would you like them to invest? Why?
- What are the problems that investors have put forward?
You cannot simply receive rejections from investors and then forget about them. Consider the reasons why they decided not to invest in you. What can you do to make you and your business a more viable option? Don’t waste a contact with an investor by trying the same methods, or showing the same results that led to your failure to gain an investor the last time.