Right now, a massive number of entrepreneurs are coming into light. They are not only coming up with some unique ideas, but they are also presenting some creative marketing ideas. But, in spite of such success, some of the young entrepreneurs are finding it tough to get suitable investors. So, are you one of them? Well, then you must know that getting investors is not the toughest part of the process. Yes, you heard it right. If you can follow some tips, you can grab the appropriate investors for your startup.
So, here are some of the tips that you can follow if you want an investor for investment.
Get it to touch with top-notch business universities
This is one of the best ways to learn about how to get investors. Well, you can contact your nearest business school. But make sure that they are worth your effort. Most of the time, these business schools have a strong network of successful entrepreneurs as well as faculties. Besides, they also have alumni, faculty, as well as guest speakers. So, you can directly ask them if they can help you with direction resources. You, asking for something, are never a bad idea. Maybe, you will get the desired investors from them. You never know.
Communicate with your friends who are in the industry
Asking your friends is another way of getting investors. Maybe, you have some friends who have got their investors earlier. So, reach up to them and ask for recommendations. You will find that numerous investors belong from specific markets like travel, biotech, retail, or mobile app development. There is a possibility that they have an active list of networks. So, try to make yourself compatible with that network, and do your research about the angel investors, who are working currently in your field. Try to grab an introduction with them.
Now, this is one of the most effective ways to get the appropriate investors. Now, who is an angel investor? Well, an angel investor is someone who will provide you with the capital money. They will not only provide you with the funding, but they will guide you in numerous ways. You will get some valuable advice from them, they will offer you mentorship, and they will also help you with their contacts. So, you can understand that an angel investor is an angel. Now, how to get an angel investor? Well, there are numerous sites from where you will get angel investors who will help you to establish your startup.
Get startup investments from Crowdfunding
Yes, you heard it right. You can get the desired investors from crowdfunding. You will get access to various crowdfunding platforms that are targeted to business, science, startups, arts, and numerous other things. Also, you will get other benefits of crowdfunding like equity investments, venture networks, as well as loans. So, if you are someone who is opting for crowdfunding, consider that you have numerous opportunities in your hands. It is your best option if you are one of the active participants of their industry. Also, crowdfunding is another brilliant way to enhance your reach and fall in the eyes of the investors.
The entrepreneurial community of your city
Well, the first thing that you have to do after planning a project is to get in touch with the local founders, who are working near you. Well, try to join the regional startup or regional tech groups through Facebook and LinkedIn. Also, you have to attend numerous events, help the organizing committee, and get in touch with as many people as you can. Also, try not to pitch every time you see them. Be a human and ask them for advice, and also give them information when they want. To be more precise, if you can connect with them emotionally as a human, there is a possibility that you will get your investor there.
Use a business model that has worked earlier
It is always an excellent option to go for a business model that is tried and tested. We know that there are some risks involved with the operation of a franchise, but the fact is, this is an established business model. You will get everything in those models that will help you to make your business successful. Well, this will provide a sense of comfort to the investors. Once you get the desired threshold, you can incorporate your business ideas. But first, it will be best for you if you start with operating a franchise.
Try to find out the investors near your home
Choosing an investor near your home can never go wrong. Do you know why? Because most of the angel investors feel comfortable in investing near their home. They do this so that they walk up to the entrepreneurs whenever they want and provide them with some valuable advice. Also, choosing an investor near your home will be beneficial for you. You can communicate with them whenever you want, and whenever you need them. It will be a convenient option for you. So, opt for the investors who are near your home.
Make a strategic list of the investors whom you want to meet
Without proper organizational skills, it will be hard for you to establish your business. So, try to come up with a list of investors whom you want to meet. By doing this, you will get numerous options for investors. Well, creating a network can never go wrong. Maybe, from this list, you will get your desired investors. Also, there is a possibility that you will not get your investors from this list, but at least, you created a network. It will be beneficial for you in the long run.
Accelerators and incubators
If you can work with incubators and accelerators, you will get access to the whole host of resources about the investors. It will allow you to witness the growth of the business and success. Well, it is an excellent idea when it comes to the conversion of your idea into a viable business model. Also, it will help you to get the investors who will fund your startup. In return, the accelerators and the incubators will ask for the price of your startup. So, it is up to you, how much you want to give up for your business. You have to select the incubators as well as accelerators according to that.
Take help from the professional networking sites
If you can fathom a bit, you will find out there are numerous professional networking sites that will help you to connect you with investors. Also, you will get innumerable investors according to various business segments and industry specializations. Besides, numerous sites will even connect you to investors from different countries. Those investors are eager to contribute to the global business environment. Also, there is a possibility that they will bring you services and products from their part of the world. So, you can see that it is quite a useful way when it comes to gaining investors. You can opt for this method without any hesitation.
Personal effort in marketing
In this step, you have to list yourself into the places where the investors can find you. There are numerous places, where the investors can reach up to you. And if they like your idea, there is a possibility that they will fund your startup as well. Well, the places from where the investors can reach you up are:
- Social Networking Sites
- Conversations that are going on in Quora.
- Guest blogs on the recognized posts
- Personal blog posts
- Traditional media outlets
So, these are the places where the investors will find you.
Family and friends
You haven’t thought of it, right? Yes, we can understand that friends and families are not the first things that come to our mind when we talk about investors. But it is a common fact that choosing your family and friend as the investor is a pretty safe and reliable option. You don’t have to give much effort in making them understand what you want. They are already aware of your passion, and they want to see you succeeded. But try to keep your personal and professional life detached. Tell them about all the risks of an investment in writing so that they can understand properly. Do not lose your friends and family over business. It will be not worthy.
Get in touch with an online lender or your local bank
Getting in touch with your bank is another way to get investors. Also, you can get access to numerous online lenders who will help you to get suitable investors. But, first, get in touch with your local bank as you already have an established relationship with them. Get an appointment with the loan officer and visit him or her with all the preparation. Explain the loan officer about your business and how much money you need for your startup. Maybe, you will get a loan for some specific aspects depending on the situation. In case, if the bank denies your credit, you can apply for the personal loan. Also, make sure not to quit after your first appointment.
Prove that you are ready for the market
It is essential to prove that you are market-ready if you want investors for your startup. If you can prove that you are market-ready, it will be easier for you to get the investors. But how to prove that you are market-ready? Well, you have to show that you are established in some way. Maybe, you have major name recognition, you have a significant presence in the social media, or business model is capable of attracting the minds of people. The best thing that you can do is to scan the model of your business as well as associated numbers with the help of a calculator. Make sure that you are ready to defend anything with your business model.
Connect with your business mentors
It is essential to see advice from your business mentors before you come up with your business. In case, if you don’t have any mentors in the market, make sure that you make some before you get into the business. Your mentors have witnessed the significant parts of your journey; they also know your company, and you as a mentor also have the experience so that you can incorporate their guidance in the industry so that it can help you to get the proper navigation in the industry. Well, your mentors can be a successful entrepreneur, leading influencers, or investment experts. To be more precise, they will help you to understand the psychology of the investors even better. Also, there is a possibility that they will introduce you to someone who is well-matched with your vision.
Private equity farms
You can consider the traditional path to get investor funding. Well, private equity firms will provide you with everything a few thousand million in investment, mostly to the startups which are in the stage of growth and have to potential to achieve success. They will also consider the fact that whether you are compatible with the different series of industries. Their main objective is to sell their stakes for a few years and gain a tremendous amount of profit from your startup. So, you can consider Private equity farms as a suitable investor if you want your startup to grow.
Go for the smaller amount of money from a lot of people
Now, this is one of the unique ideas that you can use for getting investors. Well, you can reach up to numerous people and ask them for a smaller amount of money. In this way, you can come up with the bulk amount, and you don’t have to fear to lose a high amount of money. Well, you don’t have to bother about the burden of the money. You can sleep peacefully at night. Besides, you don’t have to concern about the huge amount of money as many people are providing you with that.
Different types of investors that you can look for
Now, let us discuss the different types of investors that you can search for. Let us provide you with a list of different types of investors so that you can choose anyone from them.
How to get a investors from Angel investors?
Right now, they are the most celebrated investors around. Most of the startups are looking for them. Mostly, they are rich entrepreneurs who are ready to help struggling entrepreneurs. Also, there are numerous types of angel investors that you will find. Some of them will offer you mentorship, some of them will buy stocks for you, and some of them will seek you a high return if there is risk involved with the investment.
They are the people who are very close to you. They can be your family, your friend, or someone with whom you have a secure business connection. To be more precise, they are falling under the umbrella of close people. These types of investors will join you at your early stages. Well, be very careful as you are risking the money of your loved ones.
If you are coming up with a small business, this type of investor is best for you. They provide funding to the small business owners mostly. There it can vary from several persons to one person. There is no intermediary involved with this funding. No bank or private institution will come to your way while opting for this investor. The advantage of these investors is that you have to pay a shallow interest of rates compared to the banks.
What are the ways to connect with investors for startups with great ideas?
There are several ways to connect with investors. You have to follow specific points so that you can bring up your ideas to them. Here are the points that we are talking about:
Use your storytelling capability while pitching
If you have storytelling capabilities, it is the time that you must use it. It is the best way to connect with your listeners.
Go for target investors
It is a very significant step to determine the interest of your investors. It will help you to pitch your idea correctly.
Courage is also a vital thing. You have to be brave enough if you want to convey your ideas to your investors.
How can you attract customers for your trading business?
There are multiple ways by which you can attract customers for your trading business. Here are some of the ways:
The key thing that you have to do is to identify your customers. If you know the type of your customer, it will be easier for you to attract them. By doing this, you will get a brief idea about where to find your customer.
Go for direct response marketing. It is another beneficial way to attract customers for your business. Email marketing is one of the parts of direct response marketing.
Another thing that you can opt for is to build partnerships. If you can team up with any other company that provides the same services as you, you can attract more customers to your business like we are doing for our business :).