So you’ve got a great business idea and you’re actually on your way to making it a profitable business. You’re off to a great start but, at the same time, you don’t have the money and need to find some investors who can provide it. Getting funds requires a lot of hard work and even the most prepared startups can flounder in this area.
Cash, at the end of the day, is king. It’s essential to various aspects of your business: expanding, purchasing inventory, advertising, consolidating debt, and so much more. Many businesses try to apply for bank loans, but those often take a long time to get, if you can even get them at all. In those instances, merchant cash advances could be the way to go. Luckily, EIN Cap offers these to small businesses who are looking for capital in order to grow!
If you’re looking for investors to give your startup the necessary funding, here are four steps that you can take:
Investment is filled with various guidelines that can be hard to navigate. For example, in the “tech” domain, there are specialists in hardware vs. software, and further distinctions in software. Venture capitalists can be very specific about which companies they invest in: what round of funding they’re in, the status of similar startups, their valuation, etc. Understanding an investor’s requirements will allow you to find the proper investor for your startup.
Investors are long-term partners, and you don’t want to be stuck with an investor whose image clashes with yours. Assessing “cultural fit” is essential to getting the most out of an investor. This is all about the working dynamic between investors and their portfolio companies. Ultimately, however, the right cultural fit differs for each startup founder.
Once you’ve curated a list of potential investors that you’d want to actually work with, you need to convince these would-be investors to meet with you. Most investors will take a meeting with a founder if they’ve been referred by somebody that they trust. In order to get that golden referral, you need to network like a fiend to get introductions to your target investors. If you’re not getting anywhere with your networking, it’s still okay to reach out cold. If you did your homework and offer a compelling pitch that piques their interest, you’ll have a shot at getting a meeting.
The previous three steps have all been building up to this one: getting these niche-specific investors that are a great cultural fit and have agreed to meet with you to actually give you the money. Convince investors that your startup offers a good chance of a huge return on investment. This doesn’t just require an airtight business plan, but that’s certainly an important step. To get an investor confident about you, come across as passionate, experienced, easy to get along with, and perseverant.