How does it
feel to listen to an orchestra and at the same time thinking about increasing
outcomes? Running a startup gives exactly this kind of feeling when the leader
is busy in collecting the nectar out of his/her business, at the same time
thinking of a bigger empire of business to establish. But, since every great
leap starts with a small step, the first and foremost step to be taken by any
business leader is attracting investors to raise funds for the business.
Attracting business investors is itself a difficult job, especially for the
startups. Since the startup companies lack the trade history, investors are
less interested in investing in these companies. Still some salient points
should be kept in mind by the business leaders when it comes about the fund
raising procedure.
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Friends and Family - Family members and friends is the closest
people one can have. They know you and hence trust you. So they can be one of
the most secured investors in your business. Make a mutually signed agreement,
for future reference, in case the plans don’t work.
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Judge your business like an investor - Ask yourself, if you were an investor, would
you be investing in that business? Think about the various aspects and
scenarios of your business that must be lucrative enough for an investor. Make
an offer to the investors through your business, he/she can’t refuse.
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Evaluate your business - Realistic evaluation attracts investors.
Never have over optimism. Since your business is a startup, the fact is that
there is no guarantee of huge success at an ease. So sensible and realistic
evaluation is important.
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Make a plan for the profit of the investors - Investors invest money for a business to get
a good amount in return. Planning for their profit, motivate the investors. So
devise proper and unfailing procedures for the investors to get a healthy
return within 3 years of your business operation.
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The credibility of your business planning: If you are looking for a credible investor,
your plan must be reliable too. Show the key features of your business in the
summary. Also provide the details of assumptions made at the back of your plan.
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Forecast the period of getting return: Always provide the investors a limiting
period of getting their return. In general, most of the investors are attracted
towards businesses ensuring their return within 3 years. So make an effective
plan capable of the return of the investors.
