8 ways to make your startup more attractive to investors
By Shannon Ash, Rogerwilco - Jun 12th, 11:55
In a digital market where new companies are dominating the startup space daily, it’s easy to lose sight of your goal when you’re struggling to gain recognition in the field.
Startup funding is one of the biggest challenges. However, with the right advice, you will be able to work around financial challenges and take your business to new heights through your business interactions and long-term investments.
Here are a few tips to help make yourself and your company more attractive to investors:
● Surround yourself with experts in the industry
With every online industry changing in the blink of an eye, it’s important to grow your network by communicating with well-known thought leaders in the industry. Surrounding yourself with experts such as mentors, coaches or professional consultants will give you the opportunity to learn from their advice and adjust your approach to meet the needs of the future. You need to invest your time in people who can advise you on how to adapt to evolving trends and overcome challenges with ease. These knowledge banks will be able to give you some valuable advice on where to go and what to do with your business.
● Get to know the competition around you
Many startups choose to turn a blind eye to their competition, but it costs to do that. Keep up with your competitors and constantly do research on what they’re up to. Direct competition will help you stay on your toes, keep you in the know and encourage you to succeed in the most difficult of circumstances.
● Identify your business in the market
Starting a business is one thing but starting a business that sets you apart in the market and succeeds regardless of change is a deal breaker. That is what investors want to see. They want to see that you have a clearly defined position in the market and you’re owning your position. Your business needs to attend to an exclusive group of individuals, so once you’ve determined where you stand, own it.
● Prove that your concept works
Success doesn't happen overnight. There are going to be small wins from time to time which deserve to be celebrated. Once you have your feet on the ground and you’re ready to show the world what you’ve got, investors are more likely to believe in your concept. They like seeing small wins and your reaction to those wins. Someone who has the ability to see through each challenge and come out smiling shows that you have the drive to see things through, no matter the outcome. The minute your idea has proven to be a success, you’re one step ahead of attracting the right kind of investor to your door.
● Go big or go home with your pitch
Every business was a ‘small’ startup once upon a time. With constant advancements in innovation, tech and consumer behaviour, there is no reason why you shouldn’t be leveraging these tips to grow and be better. You cannot accept that you’ll be playing with the smaller dogs for years to come. Investors want to see that you’re going out and taking a chance on bigger clients. This shows confidence and passion. And, investment companies which see this are more likely to approach you with an investment opportunity.
● Be honest. Always.
As much as you want to impress people, investors like to see that you’re confident but not untrustworthy. It’s always better to underpromise and overdeliver. At the end of the day, being truthful is a vulnerable trait. If you don’t spark their interest with bold numbers, you sure will with honesty.
● Be accessible to those who need you
Having a powerful social and online presence means that anyone who is interested in investing with your company will be able to find you when they search for you. There are various applications and tools to help you manage communication and engagement, so make use of these resources to help you.
● Keep educating yourself
In order to be a cut above the rest, you need to know more than your competitors. Now, it will take several months to get there, but by educating yourself and taking courses to improve your knowledge of the industry, you’re taking the initiative to better yourself and try something new. What was trending the year you launched your business might not be an option today, so if you keep learning and growing within the industry, you will be able to improve your business pitch and attract more investors.
Startup funding is the reality of any business which doesn’t have the capital to steer their next big idea. If you have not attracted an investor just yet, look at the different crowdfunding platforms as an option. Just because someone hasn’t approached you, it is no reflection of your business or the value you can add to the industry. Getting the right investors is just as important as being able to attract investors, so make sure you have a clear idea of who you want to partner with and where you want your business to go
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