So, you have a great business idea that you think will make you a fortune in the long run. What now? How do you come up with the capital to start your business, or an infusion of cash to keep your struggling company going?
Investors can be just what you need to help you start a new company or keep an existing company afloat, but how do you get their attention? Don’t just hope that you’re lucky enough to be noticed, but try the following things to attract an investor’s attention and entice them to invest in you:
1. Build the Right Team
Without the right people on board, your company has no chance for success. It’s time to put together the right team with all the experience and know-how that will propel your company’s growth and keep things operating smoothly. When potential investors take a look at your team and see that you have the right men/women for the job, they’ll be far more likely to invest.
2. Spark Their Interest
It’s not as hard as you think to run into investors, but in order to make those encounters count, you need to have a 30-second elevator pitch. There has to be something in that pitch to spark their interest and make them take notice of you. Spend a lot of time crafting a solid elevator pitch that can hook an investor right off the bat.
3. Have a Solid Product or Service
You’re going to get nowhere if what you have to offer is no good. You may need the capital to produce a quality product en masse, but you should at least have a working prototype to show investors. Establish your product or service as a thing of quality, and investors will be far more interested in what you have to offer.
4. Use Social Media
Want to really go the distance with your company? Social media is one of the best ways to spread word of what you have to offer. Investors will almost always take a look at the social media presence of companies they are considering investing in. If you want to get an investor’s attention, make sure you are strong in the world of social media. A strong social media presence shows that your company has traction, even if it is a new company or service.
5. Find Referrals
Many investors will avoid "cold pitches" from people they don’t know, but will give time and attention to people referred to them by friends or colleagues. Find someone to refer you to someone else, and start working your way up the chain of referrals. If an investor is interested in your product/service but not in investing in it, ask them to refer you to someone they think would be interested. Referrals hold a LOT of weight in the business world.
Follow these tips, and you’ll be much more likely to get an investor interested in what you have to offer!
Got any more advice for budding entrepreneurs? Leave a comment below and let us know…