So You have a good idea running which requires proper planning, strategies and execution to reach its full potential as a business?.
You are driven by passion and commitment to see it through to a profitable growth but stuck waiting for an ‘angel’ to push you to that next phase?
Frustrating isn’t it?
To set up any business and successfully keep running, you need money. Lots of it. Don’t be fooled to believe that you can start a business with virtually no or little money. It is a dream every entrepreneur wish to wake up to. You need money period! Most often a substantial save away (cash). The trouble of raising these funding is a major hurdle for startups.
No matter how good the idea is, it can not guarantee the funding you need. Money is important; it is very instrumental for your business growth. To attract these funding, which should be as a result of a considerable decision making in deciding that you need more than you have for the next step. Then you have to evaluate the business, examine your preparedness among other factors; and most importantly, the form of funding that you need.
There are many prospects or individuals who are willing to invest into early stage businesses or startups. These individuals or investors you may call them, do not just invest or fund startups for the pleasure of it. It’s also another form of business for them to make significant returns. Attracting these form of funding or investments comes with risks, which has become a major task for entrepreneurs to attract such opportunities as their growth and other developments depends on them, especially at the startup stage.
But note that early stage funding is complex.
To be on a safer side, though it’s necessary to take some reasonable risks, it’s is important for startups to know the kind of funding they seek and understand their sources, know why it is crucial to their growth and also the risks that comes with them in other to prepare for it. Let’s focus on how to attract these investments and not necessarily limiting to ‘angel investors’ which is one source of funding.
Here’s how to attract funding to your startup
1. Get the foundation right
The foundation is utmost important. Successful businesses do not sprout out of the blues. It takes consistent planning and execution to set up right. Conceiving a viable business idea is a great start but the idea needs to take a form. It needs to be executed. Start with what you have but start up right.
Don’t just wait for the funding because you have an idea. Businesses grow in phases, take the steps one at a time. Develop the idea, initiate it, set up and keep running.
Successful businesses are the result of strategic planning and execution. Impress a funder with the good business foundation you have laid for growth.
2. Team / Management
A good team attracts investment. Not just good but competent team or management. Investors look for people to fund. The team first before the idea. Experienced and talented people execute excellent ideas. Investors usually look out for strong and balanced team. (Visit blog to read on how to build a solid team)
Successful businesses are built by great teams with passion, vision, commitment and with great perspectives. It is very important to build an enviable team with such qualities to attract the funding you need. A great idea alone or startup business without an enviable team will achieve no result but an excellent team can always make the worst ideas even seem great and a striving startup successful.
3. Create a social presence (Technology)
You do not need to be told the power of technology in this age of time.
Technology is at its peak today. Investors and funding opportunities are all over social media platforms. Investors are meeting startups via these platforms. You don’t have to spend a fortune to chase after investors any longer. Put your business out there and create the content and presence that can attract not only investors but customers as well. No matter what your business is all about, it is extremely important that you have a nice website for your company. Create social media pages. Spread your work and talent through these mediums and let them attract you the funding.
Although a good idea is what shapes the company, it cannot do all the magic.
4. Invest in your ideas
To first attract an investment or funding, it is paramount you are first able to attract yourself. If you believe your idea or business is worth investing into, the first step is to invest a little or good money into your own idea or business. Nobody wants to invest in an untested ideas that has no future or a business growth potential
Make sure to invest some of your own money into your business. This appeals to your investors.
5. A Ready Market / Customers
A ready market or one or two customers will give you a better chance of landing some funding. Customers are the ones that decides the fate of your business. You can not start a business without a ready market for the services you will provide. Find a ready market for your services and products, then you can be guaranteed of a possible business opportunity. If you do have a few paying customers, which is quite impressive to attract investors, then forget attracting any.
6. Be Realistic
While it important to have some thing going on to attract funding, it is also important to remain realistic. Investors are attracted to honesty and a great deal of consistency.
Show just what you’ve got, not what you wish to have. Be realistic and truthful about your current business situation. This will create trust and healthy business relationship when you land some funding. You do not necessarily need to have an already built or developed services and products in the market. The reality is that only few startup businesses break even at their early stages. Investors often just want to see something worth going on with potentials.
7. Be Ready
So you have the business idea now, great! You are set, running and anticipating some funding
Are you really ready for investment?
It’s not strange to see startup businesses craving for fundings but not adequately prepared for the next phase they have been desiring for.
You must be prepared in every sense of the word.
From documentations, business plan , up to date records, legally, financially Banking records, etc.
I always recommend startups to have their business portfolios handy and updated to ease the process when they are fortunate to finally get an investor.
“Don’t be the farmer who waits for the rain to prepare his land before planting, prepare the land and wait for the rain to anticipate a bountiful harvest” – Harmony Attise