How To Attract Investors To Fund Your Business


How To Attract Investors To Fund Your Business

Make your business look eligible and confident to make investors fund it. You may need investors probably you have great ideas and yet no capital. there are people out there who are willing to help you fund your business for success. Do not feel as if you are nothing just by asking for help. There are people who have a lot of money and willing  to help you achieve goals. Remember not to fake things but work hard in your ideas so it profits you for very long time and also gain trust from the investors.

Here are 10 things that will make investors scramble for funding your business.

1.Put your house in order.

No good investor will give you money till they are sure you know what you are doing, your knowledge, skill, experience may be tested here, generally investors trust people who have been in business more than those who are just starting out, but that is not a guarantee you will get the funding, its important to understand your business and what it stands for before solicitn't for funds. Know the problem you want to solve and how you intend to do it effectively and at less cost.

2.Do the groundwork 

Go the extra miles to understand your business and the industry, the potentials and pitfalls, do the research and get the foundations right. There's no use assuming people will buy the product just because you think it is good, make sure there is a market for it before your plan launch the business.

3.Set the plan.

With the information you have gotten put your business plan and model together, check and review the numbers you are proposing.

4..Look at marketing.

Both to the users and the potential investors, understand what the market is saying, liaise with marketing agents and salesmen by building good networks and relationships.

5.Be ready to work.

Work for free if need be to gain experience or demonstrate your ideas, the networks you build over time can become a source of funding, by giving you access to resources and sources of funding.

6.Weigh your options.

Combine equity(investment from long/short term investors) and debt (loans, overdraft etc that comes with interest) or leverage (subscriptions, access to other people's money or resources)

7. Skill up.

Sometimes you need to acquire additional skill sets to compliment what you have, this may mean training courses or partnering with others, and learning to pitch or market to investors and customers or learning about accounting, management etc 

8. Get a job if necessary.

If you can get a job to pay you while you build on the other side, it is an added advantage. Investors will generally not invest in a business where the founder salary consumes a large part of the business profits. Having a job by the side can help you clear your personal bills until the business can take care of them.

9.Develop your plan.

Having done what is necessary do well to write a good business plan, some investors will not invest till they see your business plan is well documented.

10. Your setup.

Any business that is setup as a sole proprietorship or partnership generally has unlimited liabilities (loss will effect the owners asset) its best to set it up as a limited liability to protect their investment, be sure to understand tax laws before you set up your business, to avoid paying heavily for it.

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