Seed Capital is one of the most important elements of a budding business. Once you acquire your first set of investors, your business begins to take shape and grow quickly. Here are five awesome tips to land your first investor.
It goes without saying that acquiring investors take time and effort. Not all investors would want to climb aboard the first moment you talk to them. Preparing a pitch requires research and planning. You need to streamline your pitch so it becomes short, concise, and remarkable.
Tip #1: Seek Others Who Have Done it
The first step is seeking a mentor. Connect with people in the same industry as yours. When you seek people who have done what you are planning to do, they might be able to provide you answers.
These people could also serve as your references when an investor begins to show interest in our company. These people should have an idea of who you are and a clear idea of what your business is about.
Tip #2: Build Networks and Credibility
You need to understand that long before you ask investors for their help, you should have already established who you are to them. It could be months before you pitch your idea to them. If you do not know who to approach, then make a list of people you could approach.
Target these people and ask yourself the things that you have which could provide value to them. How will you be useful to them? Before you ask them for their help, make sure that you have already exemplified the value you hold for them.
Tip #3: Select a Lead Investor
If you play your cards right, you might attract a lot of investors. What you should do is evaluate each and every one of them. Prioritize those who align with your company’s core values, mission, vision, and goals.
The leadership style of investors vary from person to person. It is best that you pick investors who you think would fit with the way you manage your company.
Tip #4: Understand your Metrics
You need to understand how you measure success. You need to raise the right amount of money that fits your business. Raising too much or too little could lead you to eventual failure. You might also get compared against other businesses that are far ahead of you in terms of size and traction.
Essentially, when the second round of investments comes. You might get judged with the standards set by others
Tip #5: Consider Crowdfunding
Crowdfunding has been all the rage lately. If you are having difficulties in getting investors, you may approach your customers for financing. This sounds easier than it looks, though. Crowdfunding needs a lot of planning. You need to design compelling messages and exciting incentives for your early backers.
Remember that your customers will be your investors. Give them good experience and service before, during, and after the partnership.
Did you know that some startups win investors over even with a bad idea? Click here to read more.
Opinions expressed by AsianBlurb contributors are their own.
The editorial team for AsianBlurb.
