Setting up a business is never an easy thing to do. One of the most difficult things to overcome when you are starting out is to get enough financing. This is a big hurdle that you need to cross, especially in today’s economic climate.
In order to guarantee you attract the right attention from investors here are five clever and simple ways that you should consider trying out.
1. Be Honest
You might think that the best way to get investors interested is to project a lot of big numbers for them and showcase your business in the best possible light.
This is actually not true. Being honest about your business is the best way to get people to listen and to become interested in what you have to offer.
Naturally, if your business has nothing but problems in its place you probably won’t get any investment. But this is probably going to end up saving you from a disaster anyway. But telling honestly what you might be struggling with is going to give a good image of yourself and your business.
2. Focus On Building A Great Business Plan
A lot of investors just want to look at your business plan without giving you the ability to present yourself, especially at the initial stage. Therefore it is really good idea to take some time to create an effective business plan.
There are a lot of good tips for building a really good business plan at the Entrepreneur.com. Spend some time reading these tips and draft your business plan with care.
3. Provide An Exit Strategy
You can actually get a lot more interest from investors if you are also able to provide them with a clear exit strategy. This doesn’t mean that it should be the first thing you mention or that you present it in a way that makes them doubt the ability of your business to succeed.
But you need to ensure that they feel like they can take the risk with you since they’d always have a plan B available in case something goes badly wrong.
4. Contact Them Directly
You should be proactive with your search for investment because it isn’t going to drop from the sky for you. There are a lot of great online platforms that bring together investors and businesses and it is a good idea to sign up with these.For example, you can get a lot of help finding investors at Dealmarket and other such companies.
Instead of just listing your business out there for investors to find you take some time to find them. If you spend enough time finding just the right type of investor you can get success a lot quicker than just waiting for them to appear.
5. Clear Financial Forecasts
As well as having a really good business plan it is necessary to have clear financial forecasts to present to the investor. You also need to provide them to the investors once they invest so it is a good idea to learn to draft them in advance.
Make sure the forecasts show all the main points in a clear and simple manner and that investors are able to get enough detailed information as well. A month-by-month forecast is a good idea for the first two years of your business.
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Jonathan has a big passion for helping out start-up businesses make it. He is enthusiastic about business and loves to stay on top of the financial world. He also likes to play golf together with his father.