How to Attract Investors to Invest in Your Startup Business
Curious, what are the strategies that must be taken to attract investors in your startup business?
Perhaps 5 years ago the term "Startup" was quite foreign to hear. But in the digital era like now, the term sounds familiar.
Startup companies usually operate in the field of technology business, such as making applications or software which are then marketed via the internet.
Startup is a term for startup companies that have just started their business, are in the development and research phase, and are still in the stage of finding the right target.
As a start-up company, what is vital for startups is funding.
Attracting investors or people with capital to look at startups is not easy, because startups are companies that are still not stable and do not have much experience.
This makes investors think again and again to invest their funds in startup businesses.
Strategies You can Consider to Attract Investors to Invest in Your Business
Provide Concept
When dealing with potential investors, you should give a good understanding of the concept of your startup.
Providing a concept understanding is to provide detailed descriptions of what you will do in your company.
Investors will be more interested if you provide a company concept by describing in detail every part of your business.
Thus, investors will consider your readiness to face every obstacle and your optimism for the business opportunity you are starting.
So that they can decide whether this company can cooperate or not.
The point is, delivering a detailed, clear, and good concept is one of the strategies in attracting investors to fund your startup. (euruni.edu)
Explain Business Vision and Mission
Usually investors will ask about the vision and mission of the business that you are starting.
A detailed and clear explanation of the vision and mission needs to be done, because investors consider the vision to be the final view and goal of the business you are starting.
Meanwhile, the mission is strategic efforts to realize the mission that you want to realize. Then prepare a good and detailed explanation of your startup vision and mission, so that potential investors are interested in investing in your company.
Pay attention to legality
As a new business, you must be more aware of meeting legal aspects, especially those related to the aspects of establishing a legal entity.
Here are 8 benefits of establishing a PT for your business:
a. Separation of personal property with company assets.
b. There is no period of establishment.
c. It is easy to transfer company shares.
d. Obtained large development funds from the sale of company shares.
e. The use of the name of PT is protected by law because it is not allowed to use the name of an existing company/
f. More freedom to do activities, because the type or field of business and operational areas are more diverse and broad
g. more bona fide and professional
Before applying for funding to potential investors, the legal aspect should be prepared.
The startup legality also reflects your seriousness in managing the business. Thus, investors will be more confident to fund the startup that you are starting.
Understand Prospective Investor
Understanding potential investors needs to be done, you need to understand what kind of potential investors are in accordance with your business. For example: investor background, interest in businesses that are usually potential investors to fund, etc.
By understanding in advance, the wrong investor selection will not occur.
This strategy will make it easier for you to attract investors to work with you in the business you are starting.
Pay Attention to Financial Reports
Usually, investors will feel hesitant to invest if they see unstable financial statements.
First, make sure your company's financial health condition.
Do not assume that investors play a role in running the wheels of your business, because it is certain that investors will hesitate to cooperate with your startup.
Record your company's financial statements in a neat financial statement, so investors are interested in investing in your startup business.
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