Entrepreneurial Expert: How to Get Investors on Your Side

You may be an entrepreneur with a rock solid idea that will shake up the market, but trying to get it off the ground without financial backing can be very tough. Finding investors is one of the most difficult things any new business owner can face. While this may discourage some, it’s important to stay diligent. Let’s take a closer look to see how to get investors on your side and your idea off the ground.

Focus on a Business Plan
When it comes to people investing in business, they want comfort. They want to know there’s a good chance that the money they put in isn’t something they’re going to completely lose. Putting together a business plan is a great way to do just that. Project profits based on real data and spend a lot of time determining your business’s real viability. Make sure you have your research and statistics laid out in an easy to understand way. Making investors feel comfortable is the first step in your business plan.

Make It Very Straightforward and Easy to Understand
It’s possible the investors you want to go to don’t have much experience investing, or aren’t familiar with the market your business is in. Make it easy for them to understand. You don’t want to bog them down with tons of figures right at the very beginning. Get them hooked early on in your idea by making it easy to relate to. Make sure you include emotions in your impact.

Have an Exit Plan
One thing that will calm many investors’ fears when it comes to giving their money to someone they may have never met, is having a solid exit strategy. While it’s important to be confident in your ideas, it’s also important to understand that your investors may be a bit skeptical. People tend to be very protective of their hard earned money, and they should be. Show them that, if for whatever reason, the business does turn out to be unprofitable, that you have developed a solid strategy for getting out without completely going under.

Ask for a Small Amount of Money from a Variety of People
There are some entrepreneurs who just go from person to person asking for a ton of money up front only to keep getting rejected. They want to get one person to put up the lion’s share of the money. It’s also possible to get an investment in your idea with multiple people who are simultaneously throwing in a little bit here and there. Pull in all your investors and just ask for a little at a time as you get started. Don’t forget the power of a downsell. It may not be the amount you hoped for, but Marketing Samurai, LLC recommends using a downsell to get your product off the shelves and get investors or customers you might not have had in the first place.

Creating a business can be a very difficult thing, particularly if they don’t have the money or resources to take it to the next level they need. Outside investors are great sources, but you have to go the extra mile in showing them why your business is worth investing in.