Starting a business can be expensive. This is because few business starters have cash on hand to get the ball rolling without some help outside. If you are starting a small business or looking to grow your business, you may seek financing through traditional lenders, a micro loan, or cash from your friends or family.
You can also seek funds form investors which is important you understand what investors look for before investing. Note that investors are totally different form lenders and you will need to consider that when deciding what kind of funding you want. If you want funding’s from investors, here are things they look for.
Hard Data
Investors want to make money. So,it’s your job to show them that your company will make that goal happen. If your company has been running up and down for a while, then you need to show that you have had an excellent financial performance so far.
Things are no differentif your company is yet to open its doors since you need to show what you can expect to bring in. This includes when you hit your goal numbersand when your investor can expect to start earning their money back. That’s why you need a strong and well backed up business plan before outsiders can invest in business.
An Unique Idea
Of all the things, investors will look into your idea. They will be excited about the word that is new and innovative. The key is that if the market is surrounded with hundreds of identical products, then your company is not likely to be a huge hit.
Show the investors what is all about your product and what makes it stand out. Ideally, it’s not a must you come up with a new idea but you need to show why your product or service is different from others. Youshould also show that your business is going to fulfil an unmet need. Through this action, you will better be placed to win over new investors without necessarily having to encounter numerous issues.
Lina Mark is the Partner and Editor-In-Chief at Keulj.us. She loves technology and is always hooked on new technology in the market. You will often find her browsing the web for interesting content (mostly sci-fi and tech). She is addicted to movies (mainly action) and loves to read interesting books every once in a while.
