How entrepreneurs get funded?
Finding the capital source to start a new business is something hard, But it is not impossible.
In fact, if you have a great idea, a profit-generating idea, getting funded becomes much easier.
To clarify, investors always looking for something profitable, a strong idea that brings money.
Let's say that you have a strong idea, a profitable product, and you need investment to start your business. the question is, how you get in touch with investors? where entrepreneurs meet investors?
Today I will share with you:
The top 4 places where entrepreneurs Find and meet Investors
1. Participation in local events
Imagine that investors in your city, looking to fund your business. Participating in local events increases your chances to meet those investors.You can attend these events, get used to communicating, and present yourself to people. Don't be shy, look in the room for someone who can help you with that.
Also in local events, you will have the opportunity to meet new people who can also help your business grow. peoples like workers and partners.
2. Conferences
Most major cities organize conferences, where entrepreneurs, marketers, and funders will gather. where big names launching and funding new startups from scratch. while others review investment problems and try to find solutions.In any case, conferences are where new ideas get discovered. so you can take part in them as a new entrepreneur and start getting to know some new people.
3. Community organizations
Most investors take part in activities that concern their communities. All investors take part in local councils, civil society organizations, social activists.Whatever the case, groupings of community organizations. Are big ideal opportunities to meet new investors.
4. Linkedin and other network platforms
Linkedin is the best professional networking platform. because it has a wide audience. If you have already used this site to find a job or to hire people.
Nothing prevents you from using it to find a potential investor. Some searches can find you a group of new investors, who you can search for even in your spare time.
Also, pay attention to the presence of other network platforms on the Internet. Take, for example, AngelList, which helps connect new entrepreneurs with investors and workers.
Often, the difference between a startup that thrives after a few years, and others that suffer before closing. is reaching investors who support the business from the early stages.
additionally, If you are trying to attract investors to fund your business. You must consider some important factors that will help you reach your goal.
As well as research on a large number of funding sources.
5 advices in how to deal with investors
1. Make sure to identify the strengths and weaknesses of the project
Before you start looking for investors, you must know your idea's strengths and weaknesses.The more powerful the idea, the more you can attract investor interest. Often, entrepreneurs focus too much on trying to find potential investors. Rather than on what they will actually say to these investors in the first meeting.
Due to that, you should write a list of reasons why your idea is unique. Also, prepare a professional presentation, to attract the attention of the investors.
2. Be prepared for rejection
You need to understand that rejection is a natural part of looking for an investor. For everyone who wants to invest in your business, you will find hundred who refuse to fund you, regardless of how strong your business plan is.Accepting defeat in front of business challenges, and keep trying to reach your goals. It is an essential road to success.
As all startups and businesses must have difficulties in the early stages.
3. Try to get Venture Capital
venture capital is a great option for startups looking to expand dramatically. Since these investments are somewhat large, your startup must be willing to get funds to speed up growth.Startups often seeking to venture capital sources. as these companies can provide capital and strategic help to turn their dreams into reality. Unfortunately, it is not easy to get venture capital.
Although you do not technically have to pay off venture capital - as is the case with loans - the investing companies expect to obtain an appropriate return on their investment, and depending on the deal the investors may end up with a majority stake - more than 50% of the ownership of startups - If this happens, you will lose administrative control of your company.
When trying to find an enterprising investor, be prepared to make sacrifices as you will need to give up some of your sovereignty in exchange for venture capital funding, but be sure not to make the sacrifices involve giving you the largest stake so that the time does not come when you find yourself outside your company.
4. Take advantage of your network of relationships
Instead of looking for any investor, it is best to use your network of relationships to discover new sources of investments. Many of your current coworkers or personal relationships may be aware of an investment opportunity that your startup can depend on.Your relationship network is also beneficial for more than just enhancing your career. It helps boost the startup brand’s reputation and helps you overcome difficult times.
Every aspiring entrepreneur must know the ways in which the network of relationships can be used to enhance the level of his business since most startups that succeed in attracting investors often reach this only because of a personal relationship with a financial investor.
5. Try to take advantage of the power of crowdfunding
Crowdfunding is one of the important financing channels, that very few startups see, crowdfunding is an alternative choice to find an investor but should be seen as a major financing source as important as finding an investor.At this point your priority should create a community for your brand, and develop a base of people who interact with it beyond simple use, as investing in a startup - regardless of the size of those startups or their success rate - gives people a more important reason to speak about their business.
If you raise some financing for your business through crowdfunding initiatives, investors are more likely to believe you when you confirm that there is a clear interest in the product or service that your startup seeks to build an audience for.
You must consider the necessary factors to create a successful crowdfunding campaign, from transparency in presenting your business goals, and implementation steps to promoting this campaign. Have you heard the saying "It takes money to make money"? This is also true here where you can reach investors with paid ads like you do to reach users.
By doing so, your success in raising investement through crowdfunding, will gains you some experience in presenting your ideas, and attracting the general public, before trying to attract specific investors.
Again here are some mistakes that new entrepreneur must Avoid :
- Make the project plan too long or too short.
- Try to show that your business idea is huge and very important.
- Show any inaccurate or unrealistic details.
- More than 20 points in the presentation.
- The lack of research on the investor and his previous work.
- Inability to explain your goal.
Make sure to share this article with your peoples
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