You might have a brand new idea for a business – or an app that is going to revolutionize the way people work,but unless you are lucky enough to already have lots of capital then you will probably need to get some outside investment to help your dreams turn into reality.
But you need to make sure that you get the right kind of investment that works for you and the investor. This could be the most important moment of your company’s life so you need to get it right – you can concentrate on growing the business once you have the money to do it.There are things you need to do to make sure an investment opportunity is good for you, however, the main thing is to make your business attractive to potential investors. So how do you do that?
Know your business
It may seem like an obvious thing to mention but you need to know your own business inside and out. Investors will justifiably be put off if you seem unsure about facts and figures – or if your answers to questions are vague or imprecise. If you want someone to invest their money to expand your business, then you should at least be able to tell him or her exactly what you are going to do with the cash.
To attract investors you need to make your business investment worthy. Your idea may be a real winner but that is just the start of the process. You will need to make sure that you know where every dollar is spent – and where every dollar will be spent in the future. If you want your business to become a success you have to ensure that you aren’t sidetracked – it needs 100% of your attention, and potential investors will be attracted by such commitment on your part.
Surround yourself with knowledge
Just because it was your idea that enabled your business to grow to the size that it is now, doesn’t mean that only you can sell the idea to potential investors. Being the brains of the outfit doesn’t mean you can market the idea well – or even sell it. If you create an expert team around you who are all leaders in their field, then you will have all bases covered for when you are ready to look for some investors.
Think about what you need
Just because someone is willing to throw a load of cash at you doesn’t necessarily mean that it is a good idea. It sounds as if that is a good thing – but you need to know if the investor is the right fit for your business just as much as they need to know that your business will make them more money if they choose to invest.
Even the smallest, locally sourced business can look beyond the city limits for investment. You can concentrate on being local at the same time as attracting international investors. Such an investor, Sigurður Bollason, has invested in hundreds of companies that he needs to take a plane trip to visit, but they can still be for products that cater for a specific market. You just need to make sure you are dealing with people who know how to invest.
Be the best you can be
To make sure that you attract the money you need to be able to fulfill your business plans you need to ensure that everything you do is to the best of your ability. If you are in a position to be asking for more money – for whatever reason – you need to keep on top of your game. The only limit will be what you choose it to be.
Concentrate on what is important
At the end of the day you need to know that great ideas will come and go and the really important part of the equation here is whether customers are going to be interested in what you want to sell them. It is only natural to become fixated on your big idea and have your own ideas about how it can make it to the next level. But you need to listen to the market – and to the people around you, including investors.
No one said it was going to be an easy ride to become a successful entrepreneur who attracts all the investment needed; however,with a lot of hard work there is no reason why that doesn’t have to be true.