| 3 Tips To Get Investors For Your Business |
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| Written by Jacob Sherman |
| Tuesday, 15 June 2010 17:48 |
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Making lots of money is simple- you just have to have some money. If you're starting a small business, though, that's exactly the problem that you're probably facing, and that's when finding an investor can become anything from an appealing luxury to a near necessity. While finding an investor, as in making contact with one, isn't much of a challenge, 95% of small businesses seeking investments fail to receive any funding. Luckily, getting an investor is not a just a game of chance: understanding how the investment process works and putting some well placed effort in will greatly increase your chances of getting the investment that will get your small business where you want it to go.
Making lots of money is simple- you just have to have some money. If you're starting a small business, though, that's exactly the problem that you're probably facing, and that's when finding an investor can become anything from an appealing luxury to a near necessity. While finding an investor, as in making contact with one, isn't much of a challenge, 95% of small businesses seeking investments fail to receive any funding. Luckily, getting an investor is not a just a game of chance: understanding how the investment process works and putting some well placed effort in will greatly increase your chances of getting the investment that will get your small business where you want it to go. Don't Assume That All Investors are Alike With so much of the focus being on your business, it's easy to forget that investors are individuals with personalities, goals, and values. Finding an investor successfully means finding an investor who has a vision that's compatible with your own, including how involved they want to be in your business. To be blunt, no matter how you envision your investment relationship, there are busloads of investors out there who are not interested in working with you. But there are also those who do; know what you'll be comfortable with, in terms of the investor's involvement level, expectations, and regulations. Know Your Investing Relationship Again, investors are people. While it is true that a lot of attention will go towards your small business, an investment is a relationship and has two sides. Know about your (potential) investor, what their goals and values are, and see the ways that you and your business fit in with them. While each investment relationship is unique, make developing mutual understanding and respect right off the bat a high priority. Chances are, if you feel like a used car salesman or a teenager, the investment isn't going to happen or won't be a positive experience. You should feel like you're establishing a common vision and an understanding of how you will reach it, rather than making a sales pitch. Have a Thorough Business Plan Let's say you contact an investor and they show a sincere interest in your small business. Let's even say that they've got a good feeling about you, and you set up a meeting to go through your business plan with them. If you can't show them that you know exactly where their money will and won't be going and what they can and can't expect as a result, what your vision is and what the obstacles are, it's unlikely that they will sign on with you even if all the intangibles are in place. When it comes down to it, they're not investing for you, they're investing for them. Show them that they can trust your small business to grow. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Accelerate your company's growth rate with the kind of consulting that you wish you had. Visit Rapid Penetration of Markets (RPM Consulting) online to see what some successful companies have to say about their experience working with RPM |