Having a great business idea is just the first step. Getting funding for your new company is the more challenging task that follows up. Often, individuals are discouraged from making their dream a reality because of the limited funding opportunities that are available.
It is possible to find investment for a business idea, even if the economy is slow. Presentation of your idea and having a highly professional business plan will show potential investors that you are serious and that you have what it takes to succeed. The following tips will help you present yourself well and capture the interest of potential investors.
A Great Business Plan is Prerequisite Number One:
Investors are busy people. They have many years of experience in corporate management and they can immediately recognize people who are serious about starting a business and the ones that are making amateur attempts.
To impress a potential investor, you need a solid business plan. Good business plans require a lot of research and hours of preparation. You have to be familiar with the market, with your financial needs and with the specifics of the product that will turn it into a success.
A poorly written business plan will be discarded immediately, which means that your business attempts end before you will have even gotten the chance to prove yourself.
Offer Something Unique and Market-Worthy:
Even if you have the greatest product idea, you may still find it difficult to get funding. The investors will analyze the idea’s revenue-generation potential.
Choose the right market niche. It has to be relatively empty. Trying to compete against major, well-established players will make it difficult for you to get a market share and to begin making money.
Great product ideas are the ones that can be sold easily. Think about practicality and about finding the right target audience. This is the product development you will need to follow, in order to attract investment.
Have Realistic Expectations:
Having realistic expectations and understanding that failure is a possibility will help you negotiate and present your business plan in a solid, professional manner. Investors avoid working with dreamers. Although having a grand vision is great for a start, you will have to learn how to keep it real.
Just think about it! Investors meet dreamers and new entrepreneurs on a regular basis. Realistic expectations and understanding of business processes will help you set yourself apart and achieve the main goal – finding funding for your business idea.
Learn How to Negotiate:
Finding investment for your project will often mean that you will have to negotiate. Learn how to do it in a way that does not alienate people and that helps you achieve your investment goals at the same time.
Very often, interested investors will be willing to offer something but their conditions may be tough. You will have to talk it over, reaching an agreement that benefits both of the parties involved.
Good communication and negotiation skills will help you create a great first impression but they will also keep the integrity of your business idea. The experience that investors have could work against you and this is why you need to have an idea about the compromises you are willing to make and the parts of the process you will remain inflexible about.
Maintain a Healthy Amount of Skepticism:
Understand one very important part of the investment seeking process – if something appears too good to be true, than it probably is a trap.
Investment scams target young, inexperienced entrepreneurs. You could fall for such an offer, finding it impossible to recover and regain your financial integrity.
Refuse investment offers that have very unusual demands, that will bind you for many years to come and that will take away your financial freedom. If you have some concerns, talk to a forensic accountant about the investment option. The forensic accountant will do research instead of you, figuring out whether the funding is legitimate or a fraud scheme.