Are you looking to start a new business? This can be both an exciting and a stressful time. One of the main obstacles that you are likely to face when starting up your own business is finding investors who will provide you with the money to create your dream. Many businesses fail quickly due to not having enough capital, as most business owners do not personally have the funding sources for their business to start, grow and be maintained. Here, we take you through the top tips that you need to find the right investors for your start-up.
Create a strategic list of investors
When you are looking to find investors for your start-up business, the first thing that you should be looking to do is to create a strategic list of investors with whom you would like to meet. While at first, you may think that it is best to create a wide net of people, there is no point wasting your time or anyone else’s! To start off with, create a focused list of around 40 investors who you think would be interested in your company and who would be a good fit. Take a look at other companies that are similar to yours but not direct competitors, and see who invested in them to start off your list.
Who is already in your network?
Investors receive a large number of pitches every day and so it is only natural that they favour those companies that have been introduced through a common contact. Once you have created your list of investors, it is a good idea to comb through them and see if you have any common connections with any of them. The next step is to get together with this mutual connection, explain to them how fantastic your new business start-up could be, and allow them to make the introduction.
Creating your own introduction
For any other investors on your list, you will need to create a thoughtful introduction that will grab their attention. It is important that you craft each email individually as a mass email is likely to be deleted straight away and not even given a chance. As we mentioned before, these investors will receive many pitches and so it is important that you stand out from the crowd.
Give them a reason to reach out to you
Many people forget that investing is not just a one-way street and many investors will also be keeping their ear to the ground to try to find new and exciting business start-ups in which to invest. Make sure that you are putting yourself out there, and even if you do not yet have a product, ensure that your team is generating attention. A great and affordable way to do this is to download video maker software that is simple to use and allows you to create cool video ads, infographics, animations and explainer videos.
Make sure that you utilise these tips to find your perfect investor today!