Great ways to attract investors
Some businesses are not the right place for angel funding or venture capital. But, what if your startup is a good candidate, but you have difficulty meeting and convincing investors that your company is a good choice? Their transparency? Maybe it's time to try a different approach.
You need money to get customers, but you need customers to get money. This can be difficult, but you should work to get customers or users before you reach investors, rather than looking for the money first and customers second.
Why is this so important? “Especially if you are a first-time entrepreneur, it is much easier to get investments on good terms (especially from non-institutional investors) if you have some traction. before. Investors want proof that your idea will work, and nothing proves this better than getting real paying customers.
Asking for advice
Instead of calling investors coldly begging them to invest in your business, consider asking for their brains first. By strategically reaching out to investors in advance for advice, you can build a relationship with them that will lead to a future readiness to invest in your business. It gives them a chance to point out potential flaws in your business and show that you value their input.
Has a co-founder
When you approach investors, you're not just selling them your product or service; you are selling them to your team. With that said, don't accept anyone. Choosing the right leadership team for your startup is a delicate process, as having the wrong cofounder can ultimately hurt your business more than no cofounder at all.
However, if you can find the perfect co-founder, it can make the process of getting started infinitely easier – even going beyond attracting investors. Starting a company on your own is hard, having partners gives you people to lean on, it can be a huge boost to your company.
Generate a return on investment
While investors may have confidence in your business, their investment is ultimately a means to an end, they need to make money on their investment. So it is important to highlight what they will gain from investing in your business.
Find investors and partners
It's great to inject money into your business (and in fact, it's what you've been after in the first place), but keep an eye out for investors who can actually add something tangible to your business. your business beyond money. An investor who can help make your business stronger whether through advice or industry connections and knowledge will ultimately serve you better than an investor with the money to offer and no more than that.
Join the startup accelerator program
From mentoring opportunities to figuring out where to go in your startup, joining an accelerator can be very helpful for new startups. While it does not guarantee that you will get an investment, it does make your startup a more attractive investment candidate.
Share metrics, interaction with users
Just as we mentioned in tip number two, actually demonstrating that people like and are using your product will be one of your greatest assets when it comes to attracting investors.
Avoid following the crowd
To get investor attention, make sure your product solves a real problem. Too many entrepreneurs are simply trying to reinvent the wheel, so avoid being one of them.
Transparency of the financial reporting system
To decide whether to make a long-term investment in a business, shareholders need to have a deep understanding of the company's strengths and weaknesses. The financial reporting system is the most accurate and objective reflection of the production and business situation as well as the development potential of a company. This system is required to be provided in a timely manner, with the highest transparency, clarity, and accuracy.
Hold a periodic general meeting of shareholders
The General Meeting of Shareholders has great significance for investors and business leaders. Through the congress, investors and leaders will have the opportunity to exchange directly with each other, thereby understanding more about the company's views, business strategies, as well as development orientation.