You may have great business ideas with a high chance of success. But, you may not be financially buoyant to start the business alone. In fact, you may not even have any money saved up anywhere for the venture, except for the ideas. This is where finding an investor or group of investors can make all the difference.
Here are proven ways to access professional investors;
Embark on a Thorough Research
Don’t be desperate when looking for investors, especially if you have no money and really want to get the business running immediately. Jumping at the first offer you come bye may not be a good decision. You should take time to research potential investors, bearing in mind that the future of your business is at stake if you make the wrong choice.
When you do your research, dig deeper into the potential investors’ track record. What is the performance level of companies they have previously invested in? One of the key areas to focus on is the experience of the investor when it comes to the industry you want to venture into.
For instance, if you are venturing into farming, your potential investors must not necessarily be farmers. However, they should be familiar with farming and what it entails. In the course of your research, you should compile a list of up to 25 or slightly less investors to evaluate.
Familiarize Yourself with Common Investment Terms
You wouldn’t want to look like a dummy in the presence of potential investors. So, become knowledgeable in certain investment terms. Get to know about startup investing and venture capital. You should expect investment jargons when speaking with professional investors. Therefore you have to be prepared. For instance, you may hear terms like your company value, pre-money evaluation, post money-evaluation, and so on.
You should also get to know about rounds of investing. The “Seed” is the term used for the first round. And, as you probably know, investors will get shares of stock in the venture you are going into. That is their reward for funding your venture. So, get to know the issuable types of stocks. This will help you gain insight when investors talk about preferred stock types.
The internet is a great place to search for professional investors. You should look out for legal and professional investors’ networks. In addition to exploring potential investors on such networks, you will also find investment education resources on such websites.
Finally, make sure you create a thorough business plan. Investors need to be convinced that they can generate quality funds from the money they are investing. So, use a great business plan to portray how your idea will yield income and when the profits will start coming in.
Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! Inspires entrepreneurs to build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.