So you’ve got this incredible business idea and you have all the determination to make that idea a reality. But you’ve got one problem – how are you going to get the funding?
It’s tough to build a product or service from scratch without any funding. One of the ways to get funding is by seeking out potential investors. However, it’s most likely that you’ll face competition where your rivals might have something better to offer.
As a first-time entrepreneur with little experience, how are you going to stand out and convince your potential investors that you and your idea are worth listening to? Make sure you have these few criteria before approaching your potential investors:
A convincing business plan is the key to attracting investors. So, be well-prepared and conduct a thoughtful and thorough research on your idea.
Don’t just boast and make statements on how successful your idea will be. You should back up your statements with evidences from the research you’ve done with perhaps case studies, strong figures and data.
Don’t forget that you need to be a step ahead of the game. So, gather information you need about your potential competitors, and how you can set yourself ahead of others in your industry.
If a similar idea of yours already exists, focus on the aspects that make yours different. You can, for instance, explain how you’re targeting a different demographic or have niche products that your competitors don’t.
Be Available 24/7
It’s essential to be able to correspond at all times. People dislike being directed to voicemail, and facing unanswered emails. Being unresponsive makes you look like you don’t have time for them or couldn’t be bothered.
Let your investors know that you are available and they can call you anytime. With mobile phones attached to us 24/7, you can always make time to respond to their phone calls and emails.
Of course, there will be moments where we can’t pick up every call or attend to every message every minute – we are humans after all. But if you do receive a voicemail message or an email you’ve yet to reply, be sure you reply thoughtfully to these messages.
Yes, you are here to find funding for your business. But that doesn’t mean you shouldn’t have your own savings and money for your very own business. If you’re not willing to invest in yourself, why should anyone else be willing to risk his or her money in your business idea?
You should save a significant sum of your money to invest in your business as a start before seeking investors for the rest. If you approach an investor after you have put your money on the line, he may take you and your idea more seriously.
Story by Chris Tan
Featured Image by Prodality