Small businesses are never attractive for venture capital funding and angel investments, but there are ways of attracting. Investment by taking some different approaches. According to Mike Giannulis, the trick lies in making your business look attractive. To investors by following some of the tips discussed below.
Michael Giannulis advises to show results first
When you are looking for investment for your business, you can find yourself in a Catch-22 situation –you need to invest in getting customers. You need customers to generate revenue. Business wisdom will tell you that acquiring customers first would be the correct approach. Instead of running after funds and then trying to acquire customers. Based on the capital, you must start working for acquiring a few customers, especially if you are a first-time entrepreneur. Once your business gains some traction, it will be easy to attract investments. An ongoing business bears ample proof about its reliability. That investors look for and nothing proves better than having customers who pay for your business.
Engage in networking through soft selling
To attract investment, you must find out investors and build relationships with investments by taking to networking. Within the investing community and local startup, which is a great way to meet investors. Participating in events with mention of your business is an excellent way to meet investors. With whom you can develop a relationship. It might seem a little awkward in the beginning as you as if you are selling your business, which could perhaps put off people, but if they take an interest in your business, the conversation can go on. Learning the art of soft-selling should help in your endeavor to attract investment for your business because, when done right, the chances of attracting investors are quite high.
Pitch a return investment
Investors who take an interest in your business and come forward to put in their investments money. Have a goal of their own in getting the returns from it. They want to make money from the investment. Therefore, you must tell them the kind of return they can expect from the investment. Regardless of who the investors are, whether it is someone investments in your family or a VC or an angel investor, you must show. How you can ensure that they get the expected return from it. Give more focus on protecting the interest of investors rather than beat the drum about your business model highlighting yourself. To impress investors, you must illustrate how and when you can get them a return.
Look for an investor who is keen to become a partner
Investors are money suppliers. You must look upon them not merely as sources investments of money. But as someone who can add some tangible value to your business. An investor who can strengthen your business, whether through knowledge and industry. Connections or advice will ultimately contribute better than those who have nothing more to offer than money. Some investors might even be ready to participate in the business as a partner.
Identifying an investor is not enough unless you follow through to ensure a fruitful culmination of your fundraising efforts.