May be you have a great idea for an internet startup business but not enough money to get it started? Finding investors for your startup could be a great way to get your idea funded. However, getting investor funding is not a fast or easy process. Thousands of would-be entrepreneurs are vying for investors’ attention, so follow these four tips to boost your chances of striking a deal.
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1) Understand the difference between different types of investors. Venture capitalists and angel investors are the most likely choice for a startup business. Venture capitalists provide money and often business expertise when striking a deal. Angel investors, on the other hand, are high net worth individual investors that usually offer smaller sums of money for startups. Many times angel investors are former entrepreneurs and have a business background. Regardless of the type of investor, they have one thing in common: the bottom line. Investors want startups with high growth rates that will make them money.
2) Use the internet to your advantage. Finding investors doesn’t have to be like searching for a needle in the haystack. The internet is a great tool and you need to take advantage of it. Start by networking with other entrepreneurs on social networking sites like Linkedin. Ask around, find out who knows who in your social networking group. This strategy works wonders. Once you have a business plan developed, post it in presentation form on sites like Slideshare.net. This is a great way to show off your business plan in a visually pleasing way to investors. If all else fails, you can always try one of the many internet sites dedicated specifically to connecting investors with entrepreneurs. GoBig Network is one of them.
3) Do your research. Planning for an investor meeting means more than just coming up with a good business idea. Even the best ideas fall flat if you can’t present cold hard facts on why it would be successful. Find out what investors are looking for. Research any potential competition. Write out a professional business and marketing plan. And refine your pitch. Business plan and pitch are doubly important. The pitch is what you’ll use to grab the investors attention and the business plan is essentially the blueprint to success that you show investors. Take your time during the planning stage. Sometimes you only get one shot to pitch your internet startup business idea.
4) Be patient. Striking a deal with an investor doesn’t happen overnight. Many business owners spend six months to a year seeking out and meeting with investors before something happens. Entrepreneur and co-founder of internet tech startup, CleanTie Ryan Del Rosal told us, “Finding investors takes time and patience. Go into the process with the right expectations and you won’t be disappointed.” Be persistent and make sure the investors you are talking to are a good fit for your business. Setting the right expectations from the get go can ward of potential problems down the line.
Pitching to investors doesn’t have to be scary if you plan ahead. Businesses take work, especially startup businesses. Keep this in mind throughout the funding process and your internet startup already has one foot in the door.
