Have you noticed that some businesses simply hit the nail on its head when it comes to attracting capital funding? They seem to be operating on the perfect game plan, with great products, impressive numbers and promising profit margins. So, how do they do it? Well, in today’s post, we are sharing a list of tips compiled by our market experts to help you join the league of entrepreneurs, who have made it big.
Networking is the Key:
For any business to stand out in an organic fashion, you need networking. Meeting with the local bigwigs and mixing up with the local startup community is a great place to start. Once you become recognisable within a crowd, it is time to hone the art of organic soft-selling. Never push your way through, rely on your social capital to do the work while pitching your ideas.
Always have Results with You:
The second thing you need is results as a proof of success. Results can be either in form of customers or in profits. But if you are just starting up, it is less likely that you will have a profit sheet to share, so, rely on real, paying customers to impress potential investors. Here, focusing on getting customers who will not require huge outside investment should be your priority. Never seek investments first and customers second.
Do not Make Cold Calls:
Cold calling investors and asking for their money is never a good idea. Once again, rely on your networking and arrange meetings, asking for advice or discussing a particular problem point. Asking for genuine help is the best way to have someone interested in your project and may eventually attract more investment than you can ever get from a cold call.
Show them the Money:
Investing in your company is ultimately a means to an end for the investor. So, instead of just showing them the vision, also prepare a pitch for return on their investment. Show them how they are going to earn back their capital and more by investing in your enterprise. If you can include a timeline in the pitch, all the better for you.
Get On-board a Start-up Accelerator:
Startup accelerators provide mentorship opportunities that can help a new business with organisational structuring, operational management and more. While joining a startup accelerator is not a guarantee of getting investment, it is another platform where your enterprise can gain crucial exposure and visibility.
Do follow ups:
It may seem like a chore once you have been told to revise your numbers or strategy by an investor, but if you do commit to it, make sure that you follow up. Fundraising is not a quick process, the investors vet your credibility before putting their money in your business. So, provide proof of your seriousness to make sure that the deal you are offering makes sense to them. If you say you are going to do something and go ahead and do it, everyone will want to work with you.
Take Advantage of Online Credit Market:
Nowadays, a lot of startups are getting help from FinTech lenders. These non-banking financial companies offer small-ticket finance for small and medium business owners all over India. A business loan can help you streamline your finances and keep a ready stock of inventory to acquire more customers in a short span of time. Moreover, a business loan will also improve your company’s credit rating and thus, your market standing. All these are numbers which impress and attract investors.
FinTech companies also offer quick business loans that do not require a ton of paperwork or financial history, which can be ideal way to finance your budding enterprise and make it ripe for picking by Angel Investors. For example, you can get a business loan of up to ₹ 1 crore from Lendingkart at competitive interest rates and flexible EMIs for up to 1-year duration. Lendingkart also offers auto-renewal of business loans upon full-repayment, which can act as source of funding in itself if you plan to expand gradually.
Great products and services may not always sell because money is needed to bring them into mainstream. Investment helps in establishing the tertiary systems that make up a successful organisation. Too many people with great ideas fail to achieve deserved success because of trying too hard to reinvent the wheel, so do not follow the crowd when seeking investment. Focus on your product, your customers and your network, and the bigshot investment will come to you. In the meanwhile, keep stacking up those numbers with business finance.