March 1, 2013
You are blessed with excellent entrepreneurial skills, but you need money to raise your startup to the next level. And getting your business funded by investors seems a challenge. Well, fret not: follow our guide and it will be much easier.
1. Use your network
Your network is your biggest and best asset to meet investors. It’s like a Pandora’s box that needs to be explored properly at the right time in the right way. So make your network work for you. Attend and participate in startup meetups and talks held in your area; this will help you connect and meet investors and other entrepreneurs in a jiffy. Remember, opportunity never comes to you; you need to seize it!
2. Set your fundraising goal
Before meeting an investor, ensure that you have done your homework. Make sure you have researched and figured out an amount that you believe will develop your business and be a good investment for the investor. For example, plan the amount you’ll need to shell out on basic office infrastructure, salaries, marketing, and product development; otherwise, you might end up wasting a lot of money.
Only raise the amount that you need to execute your business in the right way. Don’t indulge in extravagant activities at this time: eat moderately, rather than starving or overeating.
3. Welcome feedback
When you meet an investor, stay open to feedback. Don’t indulge in arguing or be rude. On the other hand, don’t try to please them so much that things get out of hand.
If they reject you, don’t leave coldly; instead, make sure to be polite and ask for their feedback. Accept it, improve it, follow up, and try approaching for a second round of discussions.
4. Be penny-pinching
Investors often believe that startups waste money. So make sure you allocate cash properly for your product development, organization building, and advertising. Always remember that you are a startup, who needs to scale, so never be extravagant with your accounts.
5. Be bold to bootstrap
Yes, I really mean it. All investors would admire you for bootstrapping your venture to a certain extent. This demonstrates your commitment towards your business and is widely appreciated among seed funders and angel investors. Early-stage venture funds always trust startups that have already raised angel money, and they will keep investing with you.
Finally, remember that an investor invests in your business to share your profits. So make your idea attractable and sellable. Getting your business funded starts with having a reasonable plan.
Guest author Debarati Mukherjee is an accomplished blogger, journalist, and communicator, having over five years of media writing experience. She has written on diverse subjects ranging from entrepreneurship and small businesses to human rights, beauty, fashion, and fitness. There are more than 100 articles credited to her name. Presently, she is working as a communications specialist with Idyllic Software, a Ruby on Rails consulting company which aims to help startups grow up in business. You can follow her at Twitter or LinkedIn or write to her: [email protected].
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