Getting investors for a new startup is essential but getting the right one is all the more important because of the power that an investor wields. A bad investor can stop your business from even beginning, however brilliant your idea be.
As amateurs how do you make the investors to listen to your idea and convince them to put in their money?
Don’t worry; you have come at the right address.
Having good communication skills is a must for every entrepreneur. You cannot afford to be late in responding to calls and emails at a time where people are online, always. And by responding I don’t merely acknowledging the message but replying thoughtfully. No one likes to be led to your voicemail or kept waiting for your reply.
- Be honest
You might think that showing unreasonable statistics may win the heart of a prospective investor. If you think that, then you are hugely mistaken. Investors have been through the same situation that you are going through right now. They have been there and done that. So you cannot and may I say, need not trick them into buying your idea. Be realistic in your approach. A sugar coated pitch will make it easier for the investors to lose confidence in you and your idea.
Now that you have earned the image of a trustworthy and dedicated person you don’t need to go out the way to secure an investment. Just take a few steps in advance and do not get slackened.
- Provide proof
The only thing you have to do after securing an investor is to justify it by keeping the business running smooth. This will reassure their confidence in you and help in getting funds further.
- Build relationships
Meet people with keeping the future in mind because anyone you meet might be a potential investor.
- Be the one who is liked by everyone
This goes a long way, way ahead than you can imagine. Because ultimately it all comes down to human relations. One cannot deny that before reaching out for someone, the last thought that comes in our mind is that whether we like them or not.
Apart from you being likable and trustworthy what else you require is a sense of judgment to know the right investor for you. Go after those types of investors, who are,
Companies which have a well rounded and diverse team will be better able to resolve issues that a new company faces.
A skeptical outlook won’t take a emerging startup forward. You want to look for investors and companies who will be ready to take on the troubles with a positive attitude that any new venture or startup goes through. Approach different investors, meet many new people but partner with those who exude positivity. With experience you can decide whom to partner with.
The role of an investor is not limited to just providing funds. They become your source of advice for taking decisions regarding the company’s future. They can make or break your startup. Hence choose your investors wisely.