4 Practical Ways To Find The Best Investor For Your Business
Updated: Mar 18, 2020
Let’s be truthful, if you happen to meet investors today, your top priority would be to convince them about the potential profitability of your business and get the cash as quickly as possible. While funds are important for your startup, money should not be the only criterion to consider when searching for investors. Locating the right investors is way more than persuading the individual with the biggest wealth. You should focus on finding people who strongly believe in your innovation and idea; people who can provide standard mentorships, quality investor relationships, and of course, good funds. In this article, you’d find four tips for finding the right investors for your business. And if you are one of the lucky ones to read it till the end, a piece amazing news awaits you.
1.Understand Your Business Needs
Before actively seeking out for investors, you need to understand and evaluate your business needs. Is it more capital? Better techniques? A larger network? Or perhaps, your business needs all the three?
Knowing your needs and understanding the options available will help you determine the type of investors to pursue. The moment your business idea becomes a reality and gets to the co-founder phase, your first contact will feasibly be with angel investors. Angel investors provide personal enterprise and financial support. However, they do not have the capacity to invest large resources as the Venture Capital firms (VC)
Angel investors are often liberal on their preliminary requirements, but VCs conditions are stricter. VCs would demand solid and practical data and a well-detailed business plan before supporting you. Many entrepreneurs seek out VCs for the second phase of funding.
2. Know What Different Investors Can Bring To The Table
If you think investors are just wealthy people looking to put their money into any business, then you should think again. Most investors are people with great expertise in the industry, hence you need to be familiar with the assets different investors can bring on board. Choosing the proper investors can help you in the management of your resources and infrastructure. Since many of the investors will be among the board of directors, it is wise to select those with credible experience who can support and guide you. Take, for example, a number of big VC enterprises have marketing units dedicated to dealing with external memos. The scheme can place young and inexperienced startups in the face of prospective investors and help increase their visibility in the industry.
3. Be Informed On Where To Find Them
Now that you know the type of investors your business needs, you need to know where, and how to make contact with one. There are a couple of associations or platforms where you can have access to a substantial list of investors. You can also connect with other entrepreneurs and big players in the industry who can suggest and direct you to investors.
4. Make Sure The Investor Believes In Your Company Culture
The personality of a company that involves the company’s work ethics, mission, values, goals, and others is generally referred to as company culture. Company culture is quite important for every company, especially for startups.
As soon as you find likely investors, you need to make sure they understand and fit perfectly into your company’s culture. You need to get insights into questions like: Are your investors interested in being involved in daily operations of the company, or are they interested in being passive? How do your investor’s goals and vision blend well with yours? During meetings with prospective investors, startups founders are often the only ones who are required to answer questions. However, founders should be encouraged to ask relevant questions such as “How deeply involved will you be in this company?” It’s good to be informed on questions like this so as to avoid future misunderstandings.
Conclusively, finding the right investors can be a challenge for startups, however, it’s important to take your time to select well. Do not just focus on the number of funds, look out for investors who can serve as mentors, providing advice and relevant guidance to help your business grow.
P.S: Lucky you; you made it here. Now comes the good news...
Ideapad is a platform for people like you with brilliant ideas and innovation to meet potential investors; it’s a community for investors and business enthusiasts who drive meaningful conversations and actions on running successful businesses and bringing ideas to reality.
Ready to launch into a community that is focused on making your business thrive, and connecting you to the right investors? Join our team of superachievers today! Click Me to start your journey to greatness.