Starting a business requires funding from an investor in most cases. Waiting for your savings to grow can be a never ending ordeal. This is why most startups send out feelers to people who may be interested in investing in their business.
Finding the right investor for your venture is not going to be an easy task. With most people wanting to grab all the power, there is nothing like being extremely careful when looking for the best investor for your startup.
With more and more well wishers giving their insights, there are chances that you may get confused and fall prey to the wrong suggestion.
We have some pointers that are sure to help you find the perfect financier for your startup.
Look for DIVERSITY among Investors
There is no shortcut to finding the best investor for your company. You may have to make a thousand pitches and wait for long until you get the right person who shares a view similar to that of your own. So, taking a plunge as soon as the first person agrees may not be a great idea.
Looking for investors who diversify their funds into different kinds of businesses would actually be a better option rather than going for people who have been investing in similar ventures for a long time. This would give you more freedom to try new things and experiment, which the veteran investors might be apprehensive of.
STOCK up the Employees
As a startup, you would want to hold on to all the equities and shares. However, distributing among your employees and team members is what will eventually grab the attention of the investors. With money in the hands of the team, they are more likely to work harder to achieve their goals, which is a biggest prerogative for a successful business. This will definitely reinstate more trust in the investors about your company, urging them to shell out money for your vision.
Know the REGULATIONS
With investors playing a key role in the corporate world, the regulations that govern their interests as well as that of the companies in which they invest, tend to change every now and then. Keeping in sync with these changes is extremely important to impress your investors. Also, this would help them to understand as to how serious you are about getting finances for your company. Investors are more likely to invest in your vision, if you are smart and up to date.
The way you divide your revenues and profits can also be a deciding force for the investors. Thus, what you need is a well thought out financial model that would attract the right people to invest in your company.
A mother of two, my dream of building a career came true when I identified my gift for writing. A writer by profession and a bookworm by choice, I love reading, watching movies and listening to old hindi music when I am not working.