Starting a business on your own can be hard considering the factors that you need to take note of like office rent, telephone system, Internet connection, and employee costs.
Covering the last one is quite easy since you can always turn to a live virtual receptionist. But to cover the other prerequisites, you need one important commodity: money. It makes business flow and move forward; in fact, money is considered as the blood and oxygen of every business.
The problem is: earning an amount that can be utilized to start a business can be quite difficult. There are instances that it would take many years for aspiring entrepreneurs to fund themselves that’s why some seek help in the form of “investor money.” But hey, investors won’t just immediately give you the funding that you need, you have to ease them into it and here’s how you’re going to do it.
Trick Number 1: Simple and Relatable Business Idea
We’re gonna make an assumption here and guess that this is your first time. For first-timers, it’s good to propose a simple and plausible business idea. For example, you want to open a hamburger joint. A vast majority of people like hamburgers; as such, your investors can see that your idea will work.
Trick Number 2: Under-promise but over-deliver
When presenting your business to potential investors, it’s advisable to project “conservative” figures. As much as possible, keep it to a minimum so when their R.O.I (return of investment) comes, it will likely surpass expectations. And if in the chance that it did not, at least they already know that there will be good days and bad days.
Trick Number 3: Have a Solid Business Plan
Starting a business is not like in the movies where a couple of bucks and a healthy dose of optimism can give you success. There’s just no short cut to this and it all comes down to planning well.
Do a lot of research and list down potential factors that may go wrong. Also, analyse how much your investors are going to make and how much you’re going to spend. With a solid plan, your investors will have confidence that you know what you’re doing.
Trick Number 4: Choose More People with Small Money
It’s easier and better to ask plenty of people to invest in your business with just small amounts rather than asking a few to invest HUGE figures. With this plan, you’ll create more opportunities for more people to earn rather than just for one person.
Trick Number 5: Prepare a Contingency Plan
We’re not saying that you are anticipating your failure, but it’s just wise to ready a plan. With this, you give some sense of comfort to your investors when it all goes down. Make them feel at ease by taking care of potential disasters.
Asking money from investors is really a hard task. But if you present a solid business plan that is transparent, they’ll be handing you the keys in no time.
