Tips for Finding Business Investors for your Business will be carefully discussed in this article for your perusal.
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Starting a business is a very good idea, not only for you but for the world around you because, irrespective of the motive you use to start that business, you will be meeting a need.
The big question often comes when you have a multi-million naira business idea but you lack the required finances to fund the business.
Oftentimes, such business ideas are swept under the carpet. Does it always have to be so? Do good and lucrative business ideas need to die because the visionary does not have the required financial strength to fund the business?
This article is written to show you how to find investors for your business, people who will be ready to invest their time, energy, money, and resources into the business.
All that is needed from you is not just to read this article but to get up to work so that every line written here will be played out till your business idea is listed in the stock trade.
Before we continue, it is imperative to know that your investors might necessarily not be complete strangers, they equally can be your friends and families.
You need these people for your business at one point or the other. Now let’s move on to how to find and probably lure people into investing in that business idea.
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Tips for Finding Business Investors for Your Business
Here are Tips for Finding Business Investors for your Business:
1. Know what you want
A lot of business people are so fast to say “I want Investors” but they do not know that an investor could either be a venture capitalist or an angel investor.
Let’s explain the two terms; Angel investors invest their own money into your ideas while Venture capitalists invest other people’s money into your business and of course, both investors do so after they have vigorously studied your business plan, pitches, and SWOT analysis for the business but the venture capitalists do a more thorough studying of the business since they invest more and what they invest is not their money but other people’s money.
It is only when you know what you want that you’ll be able to fully know where to go to get investment for your business.
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2. Avoid the Mass Media method
When you send emails to investors, be sure to avoid mass messages. Carefully personalize each of the messages you send and don’t create room for suspicion of any sort linking to the fact that your message was sent to the mass.
Write out your message in plain simple words and as direct as possible if you want to get them to invest heavily in that idea.
3. Research thoroughly
You are not the only one looking for investors, a lot of other people are looking for investors for their businesses and they have probably been at the office of that person you want to visit.
To get it right at the first attempt, you need to know all you can know about your potential investor, whether venture capitalist, angel investor, or family and friends.
The best way to get funding from a family or friend is not to ask directly. This will scare him or her away.
You simply need to submit your proposal to him and ask if he or she has anyone who will be interested in funding such a business.
If he has an interest, he will pick it up and if he doesn’t, you will know. The key thing, however, is to research thoroughly before knocking on that door.
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4. Avoid third-party interference
There are only a few business dealings that need a third party. Getting investors into your business requires that you or your business knock on the door of that potential investor and not a third party doing it for you.
The best you could do for your business is to take the initiative and knock on the door by yourself and not look for a third party. Third parties will only eat up your resources and produce little or no results.
5. Create a Rapport first with your potential investor
Don’t just come out of the blue and ask for funding, no company does that. You need to look for a common ground on which to take off.
Even in business, the relationship is the key to maximizing survival and growth. The earlier you understand this, the better for you.
If you have an investor in mind, try as much as possible to look for how you can connect with him first before meeting him face to face.
That means you need to know some details about him such as his interests and dislikes. This will give you an edge in getting your desired result.
Also, as much as possible, avoid going to so many people at the same time, the key here is a focus, follow one (or few) persons until you succeed.
6. Do the following too
Your business summary has to be eye catchy, let every line you put down be interesting enough for the investor to read the next.
Have a business plan handy, never underestimate the power that a business plan has. It is true that investors oftentimes reject your business even before reading your business plans but in juxtaposition, they will not invest in your business without reading your plan.