So you've got great ideas and people to work with but you lack funding to start up.. The most lucrative part of getting funds is securing investors and the tricky part lies in securing the right investors, getting them to be as excited as you are about your ideas. To get the right investors, you should consider these..
Consider your needs
what do you really need? A more than just a money bag, that is someone tat will not just invest money but will also offer ideas and advice and probably the right tools to help you navigate round the industry.. Or do you need someone to just put money into your business without interfering in your day to day activities.
What ever you need in an investor, make a list of it and look out for those things while searching for them, you don;t want to end up in unfortunate situations struggling with your investors as a result of disagreements. Make a list of the qualities you are looking out for and search for investors based on those qualities.
Industry Familiarity
It is important to find an investor that is familiar with your industry, so that when your business is over whelmed with issues that plague start ups in your industry, it won't be a surprise to your investors. An investor that is familiar with your industry will have a better understanding of your plans and activities.
Determine the type of investor you need
Now that you know your needs, find investors that fall into those needs. There are three types of investors: Private equity investors, venture capitalist and angel investors.
Private equity are private individuals that funds a business without interfering with the reins of your business.. They are silent investors, so if you need an investor to just put money in your business without showing up to work, then they are what you need.. In exchange of their funds, they require parts of your profit.
Venture capitalist is a group of individuals that prefer to invest in industries that they belong in. So if you have a huge idea with a huge potential for growth, then they are your best bet. They won't just fund your business, they have the right connections to guide you through and make sure you don't fail. They offer guidance to navigate you round the industry nut the require a huge stake of your business or profit in exchange.
Angel investors is a smaller scale of venture capitalists. They love to get involved in the business that they are funding. They offer guidance and ideas and play active roles in the company/ So if you want to start a small business, then Angel Investors might be better for you.
Attract Them
While pitching your ideas to prospective investors, you need to be clear on how your business will cater their needs. Be creative in your pitch. How will your business solve their needs, provide their desires, why is your business best for their them? Consider these in your pitch..
Choose carefully
Have a long list of potential investors, that way you will have a variety of options to choose from. Once you are done with your pitch, if your idea is good enough, chances are there will be lots of investors interested in your business, choose carefully. The investor you choose will have an impact on your business, so if you don't feel to good about an investor then keep looking until you find your perfect match.