Most people want to start their own business, but despite all the benefits, they hit a dead-end when it comes to finances. One of the biggest problems that entrepreneurs face is finding finances to support their business ideas.
Does this mean you should give up on your idea?
Of course not.
The main concern from investors is what they are getting in return. You have to try everything to explain your business idea and show some results before you can score a deal.
If you are wondering how to get someone to invest in your idea, we have some suggestions to bring you closer to your potential investors.
How to Get Someone to Invest in Your Idea
1. Show Results
As we mentioned, investors are mainly concerned about what they’ll get in return. This can be a difficult cycle that most businesses have to go through. You need money to attract customers, but you need customers to get money.
You have to make a plan to attract customers without depending on huge outside investments.
Investors want proof that your business idea will work in the real world. So, going the extra mile and attracting customers before reaching out to investors is a great way to land awesome deals.
2. Ask for Advice
Sometimes you have to change the way you approach investors. Instead of begging them to invest in your business, take the time and ask them for advice.
There are many benefits of asking investors for advice. First of all, you’ll get a chance to build relationships with successful people. These relationships will result in a greater willingness to invest in your business.
Breaking down your business idea to investors might open their eyes and see the potential in your business. Asking for advice will also point out your potential flaws, which shows that you value their input.
So, the next time you wonder how to get someone to invest in your idea, try changing your approach.
3. “Soft Sell” Strategy via Networking
The best way to get someone to invest in your idea is through networking. Networking should be the first priority of every entrepreneur.
Building relationships with successful people through seminars, gatherings, meetings, or other events will give you a massive boost in your business career.
The soft sell is a strategy that avoids the pushy sales language when promoting your business. For example, mentioning your business at some event is a nice way to pitch your idea to investors.
If they show interest in your business, they’ll keep the conversation going.
Get your game face on, and start promoting your business idea via networking.
4. Focus on The Return of Investment
As we mentioned earlier, to get someone to invest in your business, you have to highlight all the things that matter to them.
One of the most important things for investors is the return on investment. They are mainly concerned about how long it would take them to start making money.
The next time you wonder how to get someone to invest in your idea, try giving them the information they are interested in.
When you are talking about your business idea, it is crucial to mention your perspective for the return on investment. It is important to be realistic and don’t set some astronomical goals that are almost impossible to reach.
5. Start-Up Accelerator
At this point, you might wonder how to get someone to invest in your idea if you don’t have a big enough network of potential investors.
Fortunately, even people without direct connections to investors can share their business ideas through startup accelerator.
By joining a start-up accelerator, you’ll gain access to their network and credibility. That way, you’ll increase your chances of finding someone to invest in your idea.
Even though start-up accelerators don’t guarantee that you will snag investment, it does make your business idea more appealing to investors.
6. Share Metrics
The more information you give to potential investors about your business idea, the more likely they would invest. As we mentioned before, investors would like to see proof of your business in the real world.
The only way to prove that people are interested in your business is to share user engagement and other metrics.
As you probably know, data has become the most valuable resource on the planet.
So, sharing data about your target audience purchase behavior, average cart, loyal customers, etc. will make your business more appealing to investors.
7. Try to Raise Money Online
Building your local network is important, but with today’s technology, you can go a step further and attract investments from all over the world.
There are many popular fundraising platforms like Gust, AngelList, or CircleUp.
All you have to do is explain your business idea to potential investors and hope they will support it.
You will be amazed at how many people succeeded due to online fundraising programs.
8. Go For Investor that is Also a Partner
Even though the main goal behind your business is to find enough money to fund all the procedures, it would be best if you go for investors that will be your partner, not just a check.
Financial injection in your business is great, but if you really want to build a stronger business, it is nice to have a business partner.
Investors as a business partner can help your business through advice, knowledge, or industry connections.
9. Break Down Your Business Procedures
To find people to invest in your business, you have to break-down all business procedures and explain in close detail how your business works.
You have to know the difference between investors and experts. Investing in businesses doesn’t make them experts. So, if you still wonder how to get someone to invest in your idea, try explaining your business procedures in close detail.
The more knowledge you share with potential investors, the they are more likely to invest in your business.
Would you invest in a business that you know nothing about?
Of course not.
Make sure you break down all procedures and explain to investors how your business works.
10. Believe in Your Idea
You cannot expect someone to invest in your business if you don’t believe in your idea. Sometimes the passion for your business can be a deciding factor for investors.
Bonus tip: Check out how to overcome fear of failure.
Even sharing numbers and information about your business won’t be enough for investors to see the true potential of your idea. So, the next time you wonder how to get someone to invest in your idea, try building up your confidence, believe in your business, and make them feel your passion.