When you speak with several legit and credible entrepreneurs, you will discover that they plan to launch a business. Still, they are facing challenges regarding the funding of their ventures. It is easy to believe that several investors are waiting to invest, as we have seen over the years at silicon valley, and believe that the same trend is ongoing across the US. But that is not the case.
While it is challenging to raise funds outside the popular tech hubs, we know, securing money for funding your Startup is possible. We will discuss five tips that can help you get investors on your side as a Startup.
1. Do what you plan to do
Investors detest excuses. The most vital aspect is making them feel that you are focused on the task irrespective of the condition. Investors only entrust money to individuals that have proven that they have a lot to do with little money. However, those types of people are just a few, and you can be one. The best approach to showing that you are formidable is to be truly formidable. The bottom line is, just get things done.
2. Start small and build your way up
For instance, if you want to launch a restaurant and cannot afford it, can you afford a pop-up or a truck? Work and network in a commercial kitchen where you can focus and specialize in some particular meals. Then deliver them yourself to offices and other locations with a food truck instead of trying to reach KFC’s level on the onset when you have not done anything to prove that you have anything to offer. When you start up, you aim to establish that you add value to the service you deliver and not just build a big business. Once you can prove yourself, investors will aid in your growth.
3. Make a smaller number of people like you
For the service you offer, ensure that at least three of your consumers love you and your service and grow your fan base organically. Strive to create a community of loyal customers who love what you are offering. So, anytime you want to grow, you will get support from various groups, friends, and people who your customers will refer.
4. Seek advice, not money
Wealthy investors tend to get several requests for investment and opportunities, and believe me, it gets annoying. Imagine you as a wealthy investor, and a stranger pitched a business, asking you to invest without even knowing anything about you. That is them treating you as just a sack of money and not human. When you carefully study people, you tend to get decent more people who will see you as a promising founder that is serious. All you have to do is create a relationship, look for mentors, and earn their respect. After a period, they will probably make their first investment.
5. Be original
Lastly, in all you do, avoid being superficial. The most fantastic favor you can do yourself is building a relationship that is open with your investors- letting them truly know those struggles and challenges you are passing through. Convincing them is all about trust that you will be rational and moral in your decisions.