Hatching an idea into an established business is no easy feat. For a startup to sprout from the tendrils of an idea stemming up into a buoyant self-sustainable venture needs a lot of “watering” on the part of the entrepreneur.
For your business to grow, it is an uncomfortable reality that it may need to be adequately watered with funds. Yes, businesses need serious money to grow, especially when you are in a competitive industry.
For example, bookmakers.xyz invest serious money into making their service attractive and one of the best out for contemporary, crypto-leaning punters.
There is no arguing that growth slows when funds don’t flow in as much as the business needs. Many startups shrink because of financial inadequacy. This explains the high mortality rate of infant businesses.
As much as your business idea is intellectually sparkling, promising, and all, you need funding to transform it from a straggling startup to a thriving business.
How do you attract the money you need?
Many entrepreneurs starting their businesses suddenly realize that a wealth of ideas and motivation doesn’t do much without hard dollars.
Funding is very important, as said, and you can’t have it all, especially as a starter. Therefore, you may need to step outside your pride and look outside your coffers for investments.
It is sad that philanthropy is an endangered virtue, and few people would want to release their money with no assurance of handsome returns.
So how do you get these conservative purses to open up to you? How can you snatch the dollar bill from the most frugally clenched palm? How do you secure investments in your business?
The first step in making your business an attractive investment prospect is to build your business as a solution to an existing societal problem.
The chances of your business surviving increase when your business comes up with a robust solution to a massive problem.
Like your business boasts salvation for the people economically and technologically. You need to bring something new, innovative, or at least repackaged to an already congested market.
When your business has this unique aroma, investors will follow your scent and readily invest in you. Investors will certainly fall in love with a novel idea, so try as much as possible to make sure your business is disrupting the norm.
Spreading your message to investors
However handsome your business idea is, sometimes you deliberately need to woo investors. Investors need to be treated “romantically” with sweet words, pampering, and even guarantees.
This is where the power of your pitch comes in. Your pitch to your prospective investors should admirably demonstrate the depth and promise of your business. Tell them what they stand to get from the business.
The pitch should have an approach like you are asking someone whose whole worth is $1 for a dollar.
You understand how hypnotic your level of persuasion needs to be. Your pitch should radiantly ooze promise.
However, the pitch (or business idea) must be practical and credible, not artificially doctored to look more captivating and promising than it actually is.
Don’t appeal to their sympathy; appeal to their reason. More importantly, appeal to their profit-yearning side.
Also, don’t make the unforgivable mistake of submitting one general pitch to a variety of investors.
When attracting investors, what is good for the geese is not always good for the gander.
Investors are humans and should be psychologically variant as much as emotionally plural. What uniquely appeals to investor A may not necessarily appeal to investor B.
So you must allow for the element of diversity in your pitch. This sounds quite tasking, right?
Well, few things good come easy. The weight of investment you could secure is the justification for all the hard work you put in. Make sure to dig past the surface of your prospective investors.
Investigate beyond their suits and tuxedos into their inner persons, and if possible, know a bit of their professional and personal history.
This, if available, will help you customize your pitch more personally to each investor’s unique profile. Such pitches end up being monster hits molesting the investor to involuntary action!
Of course, not every investor will buy your idea
Lastly, business will always be democratic, for the people and by the people. Therefore every investor will have his own opinion.
Thus as much brilliance your pitch may evoke, an investor could simply choose not to like it. It doesn’t mean your business idea does not sound, or the appeal of the pitch is rickety.
It is the investor’s money, and it is his to choose how to spend- maybe in a bar generously footing the bills of the tables around.
The point is, allow for rejection!
Swallow every negative feedback despite how poignant it tastes and digest every rejection. They will eventually help you refine your business idea!