By Alex Rivera
Every business that’s ever been established has needed to raise funds to get up and running. Some entrepreneurs have this easier than others; Jeff Bezos, for example, was handed nearly $250,000 in startup funds by his own parents when he wanted to create Amazon.
For other entrepreneurs, this can be a riskier, more protracted process, and that’s why preparing for the journey is essential. You could lose out a lot more than you get in return when you don’t approach it right! As such, here are three steps every business owner should take when they’re trying to secure investment.
Put Passion and Hard Facts Together
No investor pitch is complete when you don’t have the right stats to bring up. If you get a follow up question, you need to know you won’t flounder when trying to answer it. Investors can smell an attempt to dodge the question from a mile off!
Passion for your business’ success is only one half of the equation. If you can pair it with some hard data that tells an investor everything they need to know, you’ll have a much better chance of getting them on board. And remember, it never hurts to practice your pitch a few times beforehand!
Create a Shared Digital Space
When you’re working on a digital basis, both you and the investor(s) you’re negotiating with can step into the same room without having to be anywhere near each other. So, not only does this make it easier to secure funding by expanding the potential pool of investors to choose from, but it makes the process a lot more seamless too.
Indeed, a virtual data room ensures every bit of data an investor would like to see is right in front of them. You don’t need to worry about transporting such sensitive details back and forth, and anything that goes into the meeting is guaranteed to stay there too. That can be a weight off when you’ve lost money due to cybersecurity issues in the past!
Look for Multiple Funding Sources
Don’t bank all your hopes and dreams on just the one investor. Make sure there’s a good pot you’re in contact with. This way, if a lower investment amount is put on the table – or you need to negotiate the cost down yourself – you won’t really be losing out by accepting.
And you don’t just have to work within the business world either. You could turn to banks who lend business loans, people in your personal life who have watched you put your all into creating your business, and even online crowdfunding platforms. Consider all of these as viable options and make use of them in tandem.
If you’re a business owner trying to wade through the murky fundraising waters, you can set yourself up for better success through the tips above. They’re not a guarantee, of course, but why may just tip the odds in your favor at a time like this.
About the Author: Alex is a long-time journalist for NewsWatch, using his expertise to explain to readers how technology is reshaping society beyond mere gadgets and algorithms. His reporting cuts through industry hype to reveal the human stories behind technical innovations, offering readers a thoughtful perspective on where our digital future is heading.
