An obvious fear is sensed among new entrepreneurs at the prospect of facing their investors. It is quite understandable; you may have bet your life on the venture, but it needs to be conveyed in the right way to the investors.
If you are well-prepared, there is nothing to fear when you are up for convincing your backer. There are a few fundamentals that have to be given time and attention before you make a proposal.
Surf through the article to learn the 7 means of guaranteeing capital for your start up.
· Prepare a Master Plan for Your Business
Create an elaborate plan of your business and show investors the big picture.
Step by step analysis of what, when, how and how much (money) has to be presented clearly. Do not forget to include a mapped out repayment plan as well. It gives your lenders the knowledge about where their money is going to be used and assurance of timely returns.
Take your time to prepare a business plan. Fine-tune and refine every element and don’t hesitate to redefine if required. Being economical with the truth doesn’t help here. Be transparent, else it would impact your repayments gravely.
Also, clarity builds trust between the investor and entrepreneur, which is much required in the long run.
- · Foolproof Insight About Your Products, Services and Customers
This goes without saying; the core part of your business is your products and/or services.
So provide an in-depth understanding of what’s what to your investors. Also expose the target audience keeping it to a very niche level.
If you already have a few customers, flaunt them in order to prove the workability of your business idea.
- · Show Your Transactions and Turnovers
Initially it takes time for businesses to nurture and flourish. Even then, make sure to reflect every progress that you have made from one investor meeting to the next.
Investors are not expecting a big turnover but would be inquisitive about the company’s advancements towards success.
Have the patience to attend every meeting with the investors so that you don’t miss out on any essentials and share a relation with them.
These three guidelines would prove the lenders how prepared and focused an entrepreneur you are. Move on to the next steps to ease your way to gain confidence of the investors.
- · Have a Good Team to Back You Up
Investors would be keen to know the background of the entrepreneur and the crew involved with the company.
Make a deliberate attempt to bring the best workforce aboard. Ideal picks are:
- · Members having experience in the same domain of work
- · Members who have worked enough to contribute to the success of startups
- · Members having leadership qualities to ensure a good flow of work and management
While recruiting the finest members, do not miss out on technology. Acquire and portray the expertise, endurance and technology you have to back your idea.
Preferably start with introducing yourself and your team before briefing your business plan. This would keep the investors interested and engaged in the plan.
- · Have Your Money on The Line
The investors would definitely wish to see your skin in the game too. It would suggest that as an investor yourself, the probability of backing out is lesser and the level of commitment is higher.
In such scenarios, the potential of earning is rocketed.
- · Have a Clean Chit For Your Credit Score
Credit score acts as a rank to your money management capabilities. If you have had a stable credit rating in the past the investors would consider giving it a shot.
In case you have a bad credit rating do all that you can to step it up.
- · Investigate Your Investor Thoroughly
Just as an investor would research about you, you should also do a thorough check on your investor. Study their credibility and get to know the parameters they follow in order to clear investments.
Be ready to pitch a lot and don’t be disheartened by initial rejections. You would get better as it goes.
Remember, choosing the apt finance for your startup is a key factor in reinforcing the success of your venture.