Launching a business is usually not cheap, and for this reason the majority of successful entrepreneurs aim to have their startups funded by others rather than relying solely on their own personal funds. Indeed, raising capital is the name of the game when it comes to picking up momentum in the early stages. Unfortunately, if you have no clue how to approach investors, where to find them, or even how to devise a professional looking business plan, you’re probably doubtful that you’ll ever be able to raise enough money to launch a startup. Luckily, with the following four tips you can greatly increase your startup’s chances of being funded almost every time.
1. Acquire the Right Credentials
First, unless you’re some crazy lone inventor who has a product that will revolutionize a market, investors are going to want to see some sort of experience in your background. People don’t like investing in “nobodies.” So, to make yourself “somebody” you’re going to need to add a few fancy credentials to your resume. A great starting point would be Six Sigma certification (https://sixsigmatraining.us/) – a thorough training course on business improvement and process management.
2. Draw Up an Excellent Business Plan
The next thing you’ll need to be able to show to convince investors that you have what it takes to make their money grow is a solid business plan. The goal is to create an outline that will describe exactly how the business will operate, how it will earn a profit, and preferably some statistics that imply that the endeavor is likely to become profitable. This is not something you want to overlook, so be sure to take your time researching how to create a professional business plan.
3. Use Crowdfunding
Aside from approaching individual investors and seeking loans, you could also utilize one of the many crowdfunding platforms like Indiegogo or Kickstarter to attract funding for your business. These sites also let you offer incentives for donations, and with deadline-oriented funding goals it is possible to raise a lot of money fairly quickly if you have a decent idea and enough promotional effort to back it.
4. Learn How to Pitch Investors
Experienced investors have seen so many pitches that they’ve acquired a sense of what to look for, and most of the time it is related to the presentation. You could have an awesome idea for a product, and even have a functional prototype handy, but if you can’t deliver a convincing pitch, there’s a good chance that investors will look the other way when they might’ve been interested had the pitch been delivered in a different manner. Thus, the importance of the pitch cannot be stressed enough.
Set a Realistic Minimal Goal
Finally, if you’re going to be running through an initial round of funding, be sure to set a realistic goal to avoid disappointment and low morale among existing investors and brand ambassadors. If people who have already invested in your idea see that you were unable to meet a funding goal, that might discourage them from investing in future funding rounds.