Getting funds and finding investors is one of the biggest struggles for any startup. The entrepreneurs need to plan out everything from investors they can approach, how to get in contact with them, plan out a pitch, and more.
Here are a few things entrepreneurs must do before meeting an investor.
Make a concrete plan
Your brilliant idea with no execution plan is of no use to the investor. Every year many startups with brilliant ideas fail due to inadequate planning or faulty execution plan. So, before you approach your investor, make sure you’ve everything ready from the execution plan for development, marketing, financial requirements, crisis control, and more. Don’t leave anything to be dealt with as it comes.
Have a figure in mind
The entire reason behind meeting an investor is to get funds to run your business. So, don’t go in without knowing the estimate you’ll be needing. Check out everything from recurring expenses, one-time expenses, and variable expenses. Having a figure will make your plan seem feasible and concrete. It shows that you’ve put in enough amount of work and that you’re serious about your startup.
Prepare your team
Investment in any business is risky. So, investors spend a great deal of time reviewing everything about your startup before funding it. Having a dedicated and motivated team who understands their roles and responsibilities is a huge plus point. After all, the success of a startup depends on people working on it.
Having a mock investor meeting with your team and being prepared for all their questions could be a big help.
Research the investors
Before you approach any investor, research the industries they invest in. Reaching out to investors who are more likely to invest in your domain saves you a lot of time and energy. You can also make a list of investors who might be willing to put their trust and money in your startup. It not only opens up more options but also helps you stay more confident during the negotiation.
While these five things bolster your chances of getting an investor, it is a tough market with many enthusiastic minds looking forward to building a startup every day. So, don’t feel demotivated when your pitch gets rejected. Every rejection gives you what’s needed to create a better pitch.
However, there’s also an easy way out. Join VGo Global’s startup ecosystem. Here, your ideas get a platform to grow and develop into a successful company. With everything from funding to marketing taken care of by the VGo team, you’ll be required to put in only 10% of the effort. You will also get proper mentorship to help you take your business to greater heights.
Click here to know more about VGo Global
This article is a slightly edited version of the article I wrote for VGo Global in 2020, when I was working with them as their Campaign Lead / Blogger.
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