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Sometimes securing funding is the best thing you can do for your business. You might want to try to do it all by yourself and not have any business debt, but if you choose this path, you’ll find that your business grows very slowly and perhaps stops growing entirely. Business debt is not something to be ashamed of as long as you can handle it, and it helps you grow.
The biggest problem with business debt is that it can be hard to get the money you need. Banks and other traditional lenders can be reticent to lend to new businesses because they can’t be sure they will pay the money back. This is where investors can come in. They might be a better option, and you could get some useful advice as well as money. With that in mind, here are some of the best ways to attract investors to your business.
The first thing that any potential investor is going to want to see when you approach them for funding is a solid business plan. With this document, they should be able to see where every penny is allocated and how you intend to use that money to grow the business. You’ll also have to show how you are going to pay it back and what kind of interest the investor is going to make on their return. Anything to do with finances and the future of the business should be included in your business plan. You might even use examples of other successful businesses and how they make good decisions, like Gemini Print and its choice of equipment, for example.
The business plan can’t just be something you threw together quickly – if you do this, it will certainly show, and it won’t help you get the funding you want. You must take your time and do plenty of research. This gives the potential investor the information they want, and it also shows you are taking your business seriously.
Having a good business plan is vital, but it won’t help you if no one sees it because no one knows about your business. This is why you will also need to have a strong network. If you can manage this, you’ll come across a lot more people who might be able to help you either by becoming investors themselves or by introducing you to people who might want to invest. At this point, your business plan will come into play.
To achieve this network and to ensure it keeps growing, you can do a variety of things. One that’s very easy to start with is to set up a LinkedIn profile and start connecting to people in your industry. Write a unique message to each one and start interacting with them. You can also attend industry events and conferences, as well as specific networking events in your area.
It can be hard to network well enough or quickly enough to get the investment you need when you need it. So this is why it can certainly be worth your while to seek out specialist programs that offer funding to startup businesses.
When you do this, you can often meet a lot of people who can not only give you the money you need, but also the advice you might require – they’ll act as a mentor as well as an investor. You’ll still need a business plan, and you may also need a short ‘elevator pitch’, so work on these regardless of how you intend to find investors.
Welcome to Birds and Lilies! I'm Lou: mother, blogger and freelance writer. This is my lifestyle blog, where I talk about motherhood, infertility and IVF, beauty, my love for food and wine, as well as my thoughts about stuff, and our real-life and travel adventures.
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