How to find the perfect investors
Modern business is an incredibly competitive environment centered on instant information, constant flow of decisions, and large amounts of capital. As such, it can be incredibly daunting to have to start a company, search for investors, or get yourself off the ground. However, it is completely possible for you and your startup to find the niche you are searching for with a few simple focus-refining points. If you need startup investors, here is how and where to begin your search.
Be Prepared for Investors
The first step in finding the perfect investors is to make yourself the perfect company. Very few investors are going to be willing to invest capital into a company that is unprepared to move forward. It is important to refine your business model, adjust your cash flow, and create a track record of success that will be attractive to the investors that you are trying to gain.
- Refine your business model: because of the nature of modern business and the absolute metric ton of competitors within whatever market you select, it will be very difficult to actually separate yourself from your competition. With that in mind, to attract investors it is essential that you be able to market yourself as unique in some way. Develop a business model and a business plan that forges a new direction or goes in a current direction in a better way.
- Adjust your cash flow: investors will absolutely shy away from giving you money if it becomes clear that you cannot handle what you already have. With that being said, make sure that you budget carefully and shore up any glaring holes in your cash flow to demonstrate that you can handle larger amounts of capital.
- Create a track record: A track record of success can be the most important factor in attracting and finding investors. Making yourself the perfect company and gaining traction within your market sector will work harder for you than even you can.
Where to Look for Investors
The second step in finding the perfect investors is learning where to look. Depending on what round of funding you are in, you might be looking in the wrong place. If you are seeking venture capital investment, however, here is where to start looking.
- Create a long list of all potential investment firms by just doing your own research. Google can be a very helpful resource.
- Narrow down your list to venture capital (VC) firms that actually regularly invest in companies within your market sector. For example, if you are running some kind of textile or clothing boutique, it would not make sense to chase after VC firms that usually invest in the tech industry.
- Make sure that the firm you are looking into is willing to grant capital in the current round of investing that you are searching for. Depending on what stage your company is in, you may not be prepared for specific kinds or amounts of funding, so take this rather seriously. The last thing you want is to appear uneducated or underprepared.
- Check out the firms’ track records. As much as you are courting them and trying to make sure they are interested in you, it is important that they have track records as well. Make sure that they have a history of success as well.
Your last step is to begin contacting prospective firms and making decisions! Hopefully this points you in the right direction and you begin to feel more comfortable with the direction you are heading. Best of luck.