If you want to start a business, one of the most challenging aspects of it can be securing funding. Most of the time, business owners tend to use their own capital, but other than that you may need to look into securing loans or investors. Here are some tips on how to fund your start-up…
Strengthen Your Business Plan
First of all, you need to make sure that your business plan is incredibly strong. The top way to attract investors is to demonstrate that what you do is absolutely worth investing in. Make sure that you are entirely realistic about what state your business is currently in and what your current cash flow situation is. Any investors will be looking for authenticity and honesty, and any whiff of possible mistruths is something that will put them off you and your company immediately.
Make sure that you are realistic about where you expect to be in a year and what you think will come of your product. The best way to do that is to conduct as much research as you can so you know exactly what position you are in.
A great way to meet investors is to start networking. If you live in a city, chances are there are plenty of local events where you can talk to possible investors and meet people who might be a good fit for you and your company. Remember those small business events are probably the best ones to go to and take plenty of business cards so that you can give them out to people you meet. On your card, make sure that your contact details and your website are entirely clear.
Chances are, they will have spoken to a lot of people over the course of the evening so your business needs to be entirely clear if they decide to look you up after. Try to create an ‘elevator pitch’: this means that you are able to explain your company and your product in just a couple of sentences. Any more than this and people probably won’t grasp what exactly you do.
You can also use social media to network: platforms like Facebook and Twitter are a great way to get to know people and to research other companies so you can figure out what exactly sets you apart.
Attract An Angel Investor
When it comes to small companies and first-time start-ups, angel investors are often the way to go. An angel investor is an individual who has money and uses it to fund start-ups, in exchange for convertible debt or owning a part of the company. If you want to attract an angel investor, you need to make sure that all your facts and figures are firmly in place. Talk to a company like Newpoint Capital once you are in contact with your investor to make sure that you are both in a good legal and financial position.
Securing financing for your small company may seem like a long and laborious process, but these tips may just help you out.