Wednesday, February 25, 2015

Finding The Right Startup Investors

By Earlene McGee


You cannot expect a direct and immediate answer to your prayers that your business concept will make its way to the market for real. It is alright to pray but there is a need for you to act as well. And you will need angels to back you up and catch you in case you fall into the pit of failure.

You have to save up money, time, energy, and guts in order to make your plans unfold right before your eyes. With this, you will need startup investors who will share the magic with you as you. List down your prospects which may include family members, relatives, friends, and even people you have never met before.

The main issue here is trust. You need people you can trust your ideas and concepts with. Hence, family and friends could be the perfect angel investors that you can truly trust. Aside from the fact that they are easy to approach, they are also reliable when it comes to finances.

On the contrary, there could also be disadvantages on the professional aspects. If the startup is not successful, they could have personal issues with you or you with them. It is difficult to separate personal and professional aspects in this case because no matter how much you try to avoid financial issues against each other, your personal relationship will still be scarred, one way or another.

Experts say that out of ten business startups, only one usually succeeds. That estimation has already been proven and you have to keep that in mind. Also make sure that they are aware of this fact and come to an agreement.

With this, you can decide whether or not to continue with the plan of having people who know you personally invest on your business. There are also more experienced and established individuals who are used to anything and everything that needs to be done under the business sun. They can be total strangers, so you need to build that trust on the professional level.

However, if you are confident about your idea, you will gamble it all just to get that individual investor listen to you. Lay down all your plans on the table and let your prospect understand the entire detail. Let him realize the benefits and advantages he will get on his end. For most, what they are after are the incentives they can get as well as the returns you can promise and fulfill to them.

Again, always listen to him. If he comes to a conclusion that you will need another guardian person to realize your ideas, follow him. Surely, he knows people who will invest. Still connect with past prospects since they may decide later than never. Leave your contact details before heading on to the next.

When you venture into a business, you are soaking into a sea of uncertainties. Startups will always be challenging. You can get discouraged at times but remember what your purpose is, go back to how you started, and look at the future. If you want to succeed, you will never stop trying no matter how many startups you will go through.




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