Four Professional Ways to attract More Investors to back Your Startup Business for Sustainability
Investment is the considered that backbone for your Startup company . If you have a Startup Idea and You want to put into practice then the first thing is the financial analysis and Capital to turn your dream into real business . Several Entrepreneurs around the world always struggle in attracting more investors both visible or angel investor to back their Startup Company so that you may not approach the bank for early stimulus to help support the Startup to pursue the journey of Ups and Dons and finally kissing the Target that is Success .
During , face to face engagement with the Entrepreneurs, we have observed that Entrepreneurs are self-centred and prefer solo flight regardless of the bumpy road ahead.They do not care about the circumstances popping up all of sudden and making them confused to cope with such situations and look and lean towards banks and the Investor after launch which affects the Small Business Companies very badly and its Silk route towards the Success may be hampered or interrupted in middle by the financial Constraints.
The Following three Professional ways will help you attract more Investors without getting exhausted .
1.Preparing Professional Business Plan and Clear Idea for Startup
Many Entrepreneurs approach the investors before the Development of the Business plan which is right since Investors review the Startup Idea in their own context .They are both curious and Cautious to invest since they are afraid that if they invested in a Startup which may not succeed then all of their investment goes in waste . It is , therefore ,necessary that the Entrepreneurs must get the Business Plan Developed so that they can easily discuss the road map and Budget of the Startup and Potential to become profitable in long run .
You may conduct research on the Market , Customers and Idea that whether the product or service, you are going to launch ,will get a positive response . In addition , you may also analyse the Competitors if the project or service is similar to already available . This will help you create the Marketing Brochure that why people avail your service or buy your product and in what way it is better than already existing services or products in the Market.
2.Engaging your Friends and Relatives for Small Amount for the Idea
if your Idea is related to an APP or service then share your Idea with your friends or Related who can support and help in getting the tasks done . It is necessary that you should have clear Plan and having Market value Idea than just Philanthropy measure . Most of your friends may put their money in your Idea initially and If your Idea worked well , they will maintain their share along with your Own investment . But ,if the Idea fails , your dreams will shattered .
The First and the most important point you should keep in your mind that give a serious thought to your Idea and consult with the People with insight of running their businesses that whether you Idea is viable or not . Some Startup attract more investors as they grow and establish in the market .
3.Be Credible for Prospective Investors and Stead Fast
Being credible is the most important in order to attract more investors since investors do not know the Entrepreneurs personally therefore , they always question the credibility of the Small Business Owners and their Sickness to the Idea and business Plan . If you present your Idea clearly , giving all details and sureties for the safety of investment then you will be able to attract more investors than Expected .
Present your Idea in Startup event for Prospective Investors in way they may be thrilled to invest in the Idea if you shared the Profit targets and working of the Startup . Credibility will help all the Startup owners to attract more investment and it will strengthen the roots of the Startup as they will not need more money in the difficult time or recession .
4.Offer Joint Accounts , Safe Exit ,Profit share to the Prospective investors
You may offer humbly , the joint Bank Accounts , appointment of a mutually agreed finance and HR Staff so that suspicions may not over shadow your trust . You should also offer the investors that they may get their money back if they wanted to quit given the period of investment in which the Company was operation either in Profit or Loss . The Same will affect the payment .
The financial forecasting, Budget management and Proper accounting Model will greatly impress the prospective investors and they will be ready to put their money in your Idea for long time since they would be confident they may get their money anytime if the Idea succeeds or fails in long run . They may get the profit share as per their investment percentage. you may offer to have a clean environment by giving them a sense of ownership.