Starting a new business can be daunting at the best of times, let alone if you require investment to get going. As a new business owner, it is unlikely that you have the financial resources or personal assets necessary to launch, develop and sustain operations. Finding investors who can give you the money required to keep the business going through its initial years is critical for you and your business. Unfortunately, few people are aware of how to get investment in their startup. Today, we will give you our top tips for getting an investment in your startup. For more information and support, contact us and set up a meeting!
1 Make Sure You Develop a Business Plan
The first step to getting investment in your startup is to write a strong business plan. Your target market, estimated revenues for at least the next five years, and any market studies showing how your idea satisfies an unmet need should all be clearly defined in your business plan. You can use an internet template to easily build your business plan but bear in mind that it must look professional. For more advice or support when writing your business plan, get in touch with us at Precision Management Consulting.
2 Work With an Expert/Consultant
If you have never had success in business, you might need to speak to someone with experience to draw in investors. Our top tip would be to hire someone who has this experience, but if you do not have the resource to do this, you could outsource this to a consultant. Most investors choose to invest in businesses they believe will yield a high return-on-investment, run by people who clearly know what they are doing. Therefore, you will have a higher chance of persuading an investor if you can afford to engage a highly knowledgeable consultant. If you’re looking for someone to help you with impressing an investor, contact us at Precision Management Consulting.
3 Networking to Get Investment
Another of our top tips is networking. When it comes to getting investment for your startup, visibility is essential. When the investor is making a decision, you need to be on their mind. Visibility puts you in front of the investor, making you their first choice. It is a good idea to conduct preliminary research on certain event’s attendees and schedule meetings with potential investors to increase your visibility.
4 Ask Your Family and Friends for Investment
Something that many individuals with startups overlook is their friends and family. In some instances, they can be your guardian angels. It won’t be difficult to persuade them to invest in your business because they already have faith in you and recognise your enthusiasm. However, we want you to keep in mind the difficulties that come with mixing your personal life and business. To avoid any issues, you should keep written records of all the agreements reached and ensure they are updated on any possible risks.
Another way that you can rely on your family and friends is to ask them to give you referrals. This approach is best if you have friends and family who are in business. Many investors trust their network to locate the correct firm, so by climbing your way up the network, you position yourself for investors to see you and your business.
5 Seek Out Equity Financing Sources
You might be wondering – what is equity financing? Equity financing is when a business receives capital from an outside source in exchange for a portion of the business. In the startup phase of your business, you may not find it appealing to give up a share of your business. However, doing so enables you to acquire money quickly, which can be used to launch your products. You can access equity financing through a variety of avenues, including investment firms, online crowd-funding platforms, incubators, accelerator programmes, and online communities.
6 Government Funding
There are a number of small business grants and funding options that the UK government provides. These grants can help you to establish or grow your business. The number of government grants and the requirements for each are too vast for us to detail today. Our advice would be to write a strong business plan, look for relevant information on Google, and then begin applying for grants for businesses. If you already have a small business grant, contact Precision Management Consulting, who can support you in strengthening your working capital and achieving milestones by gaining access to upcoming grant payments in advance. We can also support you in applying for grants to guarantee you funding for your startup. Contact us today if this is something you require.
7 Be Determined
Our top tip of all is to be determined when trying to get investment for your startup. Perseverance is essential at this point in your startup’s development. If the funding doesn’t appear at your door after the first few attempts, don’t give up; remember that countless opportunities are just waiting for you to find them. The person that fits your needs and business model the best will always find you!
Today, we have given your our top tips for getting investment for your startup. For more details or support in implementing these tips, please contact us.