Investment Capital Can Launch Your Small Business
Funding a new business venture is no easy feat. It can even feel impossible at times. The thing is, you have to remember that there is more than one way to get the job done. You can go for debt financing, save and self-fund, or even seek investors that are willing to partner with you.
None of the options are easy, but they can each suffice depending on the situation. Often it takes some combination of multiple options to make things work.
The most daunting task for many is getting those that have it to shell out the bucks. Exactly how do you catch the attention of investors? How do you convince them that they need to be in on what you are doing?
Know Your Audience
When you go to pitch, know who you are pitching to. Cater your proposal to the personality of the investor. (If you are a fan of Shark Tank, you will know to which investor favors technological gadgets vs. retail products.) It will help if the product or business is something that interests them in the first place, but even if that is not the case, you can spin to their interests easily enough usually. If they like helping others, focus on how your business will do that. If they are all about the bottom line, go there first.
Stay True to Yourself
The trick is to do that, without losing yourself in the process. Investors need to see your own passion for the business as well. Let what you love about what you are doing shine through, and keep the pitch laced with your own personality. Transparency sells.
Practice the pitch like your life depends on it. You need your delivery to be flawless and to be prepared for anything. Try to anticipate any questions they may ask and have an answer prepared. Have a plan for anything and everything that may happen, and practice each plan until it all flows naturally, like breathing.
Don’t Ignore the Obvious
Nothing is perfect, especially in the beginning. Sell what you have right now, flaws and all, and create excitement for the future when your plans for fixing the flaws are executed. Investors need to know you know what is really happening, and that you have a plan to correcting what isn’t perfect.
Have a Back Up
Even if they say they are sold, don’t bank on it until you have the money in hand. Know all your options and pitch to any potential investors that will listen. You can’t have too much money, but you can certainly not have enough.