If you have a startup business and you want to make it grow fast, you will need to find investors so that you can fund its operations. Some entrepreneurs would initially put up their own money but as their business grows, they will need more funds. To raise the money they need, they look for people to invest in their business.
Some people prefer to invest their money in a business that is stable and has been performing well for several years already. However, there are those who are attracted by the possibility of making big money and a great impact and these people love to invest in startups. These are the kind of business people who come to you willingly. If you need more investors, you must do something to convince them of the potential of your business.
Here are some ways to make people commit themselves to providing additional capital for your business.
Prepare a realistic budget for gaining customers.
In order for your business to grow, you need people to buy your products. They are your customers and you must invest time, money, and effort in finding them. Some startup companies would conduct a survey to identify potential customers. The survey must be inclusive so that you would know to which region, area, and demographic profile your product would be appealing. Other strategies would include sending emails, using flyers, product demos, and free testing of the product. All of these will cost you a lot and in most cases, you have to use your own money to fund these activities.
Find your business or product-market match.
Once you have identified your potential customers, it is time to look for a product-market match. Where are you going to sell your product so that you can realize maximum sales? Once you have identified your market match, you can incorporate this in making your business plan. You must convince the investors that you have a good customer base and that you have found a market segment where you can promote and sell your products. You have to understand that customers and investors are not easy to find. You might need several months to pitch your business. This means you will be spending a lot at this stage of your business.
Be familiar with your potential investors.
Identify your potential investors in advance. You might already know some of them. For those that you meet for the first time, get to know them better. Make sure that you share some business concepts and ideas. Do some research to discover if they have invested in the past in a business that is similar to yours. Find a way to know them better and to interact with them on a personal basis. Choose the ones that share your ideas and beliefs and you will have a better chance to make them invest in your business.
Utilize social media.
The social media now plays a vital role in almost all aspects of life, especially in business. Take time to connect with potential investors in LinkedIn. Read their posts in order to get a glimpse of their business ideas and to see if they align with yours. When you make your pitch on them later, use the insights that you have gained from their posts. This will give you a better chance to gain their confidence to invest in your business.
Pitch according to the size of your business.
If you have a small business, focus on attracting small investors who support your kind of business. Once you have a successful business, there will be lots of investors who can afford to place millions into your business. You can then proceed to expand your company and make it grow faster than before. But still, checking the background of your potential investors is advisable to make sure that you are dealing with the right ones.
Rehearse your sales talk.
Rehearse your pitch before approaching a potential customer or investor. It is important to give an overview of your business in the shortest time possible. Explain what your business is, what problems it can solve, and the things that you will need to improve it. You will most likely meet someone who is interested in your business and who has the capacity to invest. This person will most likely invite you to a meeting so that you can explain more about your business.
Once you have your customers and your investors, your business is now ready to take off and continue growing.