Attract investment in a startup: The way of planning and organizing companies is not the same as it was two years ago, nor are the processes and expectations to get investors interested in your brand or product. So, the question is how to attract investment for your company in the middle of 2021?
The months of the pandemic presented a “boom” in small businesses and startups, but not everyone knows how to take the next step in the economic sector. So, if you want to know the best tips to get investors and other possible options to finance your business, keep reading.
Have a business plan in place
The first step before attracting investment for your company is to have a plan in place, absolutely. You must not lose sight of your goal or that of potential investors. Put yourself in their shoes for a moment and think what would make me trust this company enough to invest my money? Of course, an already established, solid, and feasible business model is a very good start.
For this stage, consider seeking advice. Lean on an expert, investor, or business consultant to create the perfect business plan for your company and identify possible weaknesses in your business. Also, research as much as you can about finance and management.
Be different!
To attract the attention of an investor, make sure that your product solves a real problem whose field is not over saturated. Innovation is the number one characteristic of startups. In 2022, having a “disruptive and unique technology” is the trait that investors value most in a startup. Dare to think outside the box and define a value proposition that distinguishes your company from the rest.
Also, consider patenting your idea. By registering it, it becomes legally yours and will be more attractive to investors.
Perfect your pitch
The pitch is one of the main tools for entrepreneurs to get investments. Every entrepreneur should have a pitch about their company ready, which is very challenging but necessary. Among the main keys for your pitch to be a winner are:
- State assertively why you need the money.
- Present your business plan concretely. You need to prove that you can really pull it off and show how you will use the money.
- Speak with confidence. If you doubt your project, that will be transmitted to potential investors. Speak about your company and your achievements with conviction.
- Try to be memorable.
Of course, there are many more elements that would be enough for another blog, but it is important to emphasize here the relevance of the pitch to attract investment for your company.
Start with soft-selling through social media
It is a good idea to show that your company has sales capacity from an early stage. Selling your product or service through networks with soft selling techniques such as Inbound Marketing is a very good way to start. These imply low investment costs and a great possibility of profits.
If you manage to show investors that you have already opened a niche for yourself in the market and found demand, it will be easier for them to be willing to invest in your project.
Showing that people like and are using your product or service will be one of your biggest advantages when it comes to attracting investors. If your company has good metrics for your industry, you will be able to raise money.
Know the best places to find investors
You already have your business plan, your sales results, and your pitch, now what? Finding investors can be difficult if you don’t know where to look. Luckily, with current technology, there are many options from which you can choose:
- There are various platforms and web pages specialized in investors that allow you to publish your project on their website. Find the one that best suits you!
- NETWORKING! The secret weapon of every entrepreneur. Try to attend networking and entrepreneurship events. Also, maintain constant activity related to your company in social networks and talk about it in related social circles, you never know when or where an opportunity may arise.
- Business incubators. These will help you speed up your growth process and guide you with your business and marketing planning. However, it is recommended that you do your research on the incubator’s policies and analyze the pros and cons according to your goals.
Consider the different types of investors
Did you know that there are different types of investors? The right one for you will depend on your company and its needs. Here are some:
- Investor angels: they are people involved in the business world who invest their own capital in companies in the development stage. They tend to receive large shares in the company or compensation.
- Company partners: Sometimes it is a good idea to have an investor who is involved with and works with the entire company.
- Venture capitalists: They charge for their investment and generally only bet on more solid and mature companies.
- Crowdfunding: many people who support with small amounts of money. They are usually achieved with some kind of advertising campaign.
- Seed capital fund: Several investors or institutions invest through a single structure.
Once you have managed to attract the attention of a mutual fund investor, it will be easier to attract investment for your company from other sources.
And there are many more! It is very important that you research all of your options and carefully decide which one works best for you.
