So you have a business idea. You’ve heard so much about startups going big, such as Square, Pinterest or Dropbox. At the same time, hundreds, if not thousands of new businesses failed and gave up after a few months. How do we increase our chances of launching a successful startup? By finding the right investor.
The good news is that there investment groups that do just that – look for interesting startups to help. The bad news? It’s harder than you think to get that help. However, there are certain things you can do to increase your chances of getting picked.
1. Have an original idea
I know, I know. Easy to say. Before you approach an investor, think if your idea really is that good and profitable. Cause if someone’s going to invest in it, it won’t be for fun, but future benefits.
2. Prepare a business plan
A good idea is just the beginning. You need a plan with clearly stated goals and ways you want to achieve them. A detailed plan, including an analysis of budget with all its expenses and income, will show an investor that you are serious about this business and you understand the market.
3. Know what you need an investor for
Investors offer not only money. As experienced people in the business they’ve made many friends and business contacts. Sometimes it’s not about the money, but knowing the right people. One recommendation of the startup from an influential person can be the turning point for your business.
4. Do your research
The more you know about an investor, the bigger chance you’ll get help from them. Read about different investors and venture capital funds. If you have a fashion startup, maybe it’d be better if you didn’t approach an investor interested in mobile payments hardware?
5. Remember that investors are human
They have their own interests and preferences. Present your idea as if your life depended on it. Who knows, maybe they’ll like your startup not because of possible profits, but rather because it genuinely interests them? Passion is infectious and it’s also the best way to you catch the investor’s attention.
Yes, many startups fail. But also many achieve success and change the way business works — why not join that crowd? It’s a long and complicated road, but with hard work, a great investor and a little bit of luck, it might be your product that Facebook will buy for $1 billion.