As it is said ‘You need godfather if you are wishing to make career in Bollywood, similarly if you have a startup planned you need a profound good investor to make it going. If reaping funds was so easy, everyone must have wished to have one startup.It’s what separates the heroes from the zeroes, so here we make it easy for young entrepreneurs. Following are some tips that will make your search easier!
Have a mind-boggling idea. Your idea is your future!
One need to start by keeping the roots strong that is by having unique plan of action. Your idea is everything in a startup because that’s what will be required to a captivate investors. Moreover, you are expected to be crystal clear about your idea and very stone in expelling it to the investors in the market.
You need money but how much? This need to be resolved before starting the search for an investor.
After idea comes the budget, you need to very clarion about. Be calculated about everything from office equipment and infrastructure to insurance to legal counselling to product testing. The amount which will turn after this calculation will make clear how much efforts are required in the quest for investor or you may find that you can manage from your saving and some help from family and friends.
Self-funding is a common trend these days, professional investors call it, ‘having skin in the game’. In one way self-funding is very beneficial as it maintains your total control over the company at the early stage, also it show other investors that you have absolute faith in your idea
Conventional good investor in the market.
Now if your savings and some help don’t suffice it’s time to get going! We basically have four options, Venture Capitalist that invest in your idea based on the risk/return ratio. Secondly, we have Angel Investors who invest in exchange for a convertible debt or ownership equity. Next, we have Commercial Lenders, these are nothing but banks willing to invest in small firms. Lastly, we have SBA i.e. Small Business Administration, a government program that works with certified lenders.
If you are a conventional person you can favor LinkedIn, who will provide you with world’s largest professional network or you can go with seed accelerators, who offer you some programs like mentorships, besides investing in your idea.
Time to pitch your idea and convince that your idea is nothing short of best!
As the investor’s search reaches to its end another battle that will come your way is pitching your idea. You need to be super planned, processed and presentable at this. You need to clear about all the major and minor details of your idea which basically deals with your vision, Market Opportunity, product/service, Growth Strategy, Management Team, Competition.
Crowdfunding is the next option we have!
These above-mentioned practices are usually taken by less than 2%!! Doesn’t the rest 98% need money for the start up! They do with‘Crowdfunding’. It a great alternative in which the entrepreneur’s idea is explained to the market with a proof of concept and followed by lots of brainstorming on it. Those who are willing to adopt this concept or idea have to come forward and accept it. Also, this is done without giving up equity or accumulating debt. The primary attraction of this crowdfunding is that it is for free! Moreover, it is experience walking your way. Crowdfunding is a good way to gauge the user reaction and analyze the market so that we decide to pursue or pivot on our idea.
Competitions can boost you both mentally and financially.
Participating in competition with your innovative idea can give you both funding and publicity. There are much contests coming up which will encourage your inventiveness.
Be persistent! Don’t give up.
Nothing is easy in life and so this willalso not be easy. But have faith in your idea, if required improvise the idea and meet new investors. Let’s not stop till we succeed!
So if you have any out of the box idea running at the back of your mind and funds were the only thing pulling you down, hope you have to get the solution. It’s not that difficult, is it?