Attracting investors can be one of the most stressful parts of starting your own business, but it doesn’t have to be this way. If you know how to attract investors, you can take the time you would have spent worrying about money and use it towards building your company, ensuring that it is ready to compete in the marketplace once investors start looking at it with interest. Step 1: Generate Ideas Have lots of great start-up ideas, and write them down. Most entrepreneurs say coming up with ideas is their favorite part of starting a company. It doesn’t have to be revolutionary—and it can even be a bad idea. Just make sure you are passionate about your product and that there are people out there who would want what you’re creating. While it might seem counterintuitive, having more than one idea is not only acceptable but also good practice—it gives you options and shows that you’re well prepared for success if your first choice doesn't work out as planned. Step 2: Build Your Pitch Deck A pitch deck is what you use to pitch your company, idea, or service. A pitch deck is like a road map of where you plan on taking your business, so it has all your key metrics and goals clearly defined. But don't make it more than 15 pages and keep each slide within three minutes when talking out loud. Your deck should also include key financials such as projected revenues, expected costs, and any money you've raised so far, as well as quotes from analysts who have reviewed your model or company. The goal here is simple. You want an investor to finish reading or watching and say yes immediately after. Step 3: Create a Strong Online Presence An investor’s first impression of your company comes from its website. It's also likely that you'll use social media channels like Twitter and Facebook to connect with potential investors and customers. A strong online presence is critical to enticing investors and customers, so be sure your website has a professional design, includes clear call-to-action buttons, and displays impressive graphics. If you're just getting started on social media channels like Twitter or LinkedIn, join business organizations and follow local authorities on topics related to entrepreneurship. Having relevant contacts could prove beneficial if they choose to spread the word about your business. Step 4: Connect With The Right Investors It's important to keep your list short and manageable. I usually tell entrepreneurs that they should only be reaching out to a maximum of ten investors. Also, look at what those investors have invested in before (i.e., sectors, industries). Chances are that you can probably find someone who has already invested or two in an industry similar to yours and is familiar with companies like yours that are doing well right now. Step 5: Networking Events And Conferences It's no secret that face-to-face networking is more effective than digital. That's why it makes sense to attend conferences and events related to your industry as often as possible. It's also important if you are going to be pitching your company,  that you take time beforehand to think about and practice your pitch. If someone asks what you do, try not just say your startup is X or a summary of your website—have a clear pitch prepared ahead of time. And don’t forget, everyone hates an over-prepared salesperson. Do not be afraid of giving a shorter version of your pitch and seeing if they want more details or ask any questions. Step 6: Follow Up On Initial Meetings When you have a meeting with an investor, you must ask if there is any more information or contacts that would be useful. If you don't hear back from them within 5 days, call and ask if it would be ok to continue your search. Do not get upset over a rejection. Every no brings you closer to a yes as long as you take action by following up on all leads and trying again! Step 7: Create Your Investor Deck Creating an investor deck is a must if you’re looking to raise money. An investor deck is a presentation of your startup, complete with company description, market analysis, competitor overview, and financial projections. Make sure it also includes your executive summary. The more impressive your presentation looks, the better chance you have of attracting investors. If you don’t know where to start when putting together an investor deck then look at some other tech companies that are similar as guidance. Step 8: Try To Build Up A Strong Social Presence Let's be honest, you don't know how you're going to make your business idea work. Unless you get someone on board who is willing to part with their money, all of your talks about business won't mean much. A strong social media following and a solid network of contacts can help immensely when looking for investors. It shows that your business has real-world traction, which can go a long way towards convincing an investor or banker that they should bet on you rather than someone else. If you have no social media presence or minimal social media contacts, develop them before attempting to attract investors. It'll give you something meaningful and tangible to say during meetings with potential backers. Step 9: Hire An Investment Specialist Most experienced investors aren't going to take you seriously until they know your business inside and out. You must find someone who is an expert in your industry, has a strong network of contacts within your local community and can add value. For example, if you are starting a restaurant or retail shop, a real estate investor isn't going to be of much help when it comes time to sell. A good investment specialist should help with things like research and strategic planning while making sure that all state/federal regulations are met as well. When seeking out an investment specialist, look at their past projects and see if their experience seems like it will align with yours well. As always, trust your gut! Conclusion Raising funds can be one of the most challenging aspects of starting your own business, especially if you’re relying on outside investors to make it all happen. Sure, you could take out a loan, but that will put you in debt and make it difficult to pay yourself and other employees until the debt is paid off. Instead, consider these 9 steps that will help you attract investor interest in your startups and secure funding to meet your goals.

Facebook

Funding

Twitter

Read My Stories

Too Long; Didn't Read

Boost your HackerNoon story @ $159.99! 🚀

How to Attract Investors for Your Next Startup

About Author

Comments

TOPICS

THIS ARTICLE WAS FEATURED IN

Related Stories

Untitled Story

The Noonification: Use This 7-Step McKinsey Framework to Solve Any Problem (1/10/2023)

$500k Presale: TG.Casino Passes Milestone with Upcoming Telegram-Powered Platform

The Noonification: Have U Been Pwned? (1/12/2023)

0xMahjong NFT to Begin Free Minting - Mahjong Meta Game Expects Over $10 Million In Funding

105 Stories To Learn About Outsourcing

The Noonification: Use This 7-Step McKinsey Framework to Solve Any Problem (1/10/2023)

$500k Presale: TG.Casino Passes Milestone with Upcoming Telegram-Powered Platform

The Noonification: Have U Been Pwned? (1/12/2023)

0xMahjong NFT to Begin Free Minting - Mahjong Meta Game Expects Over $10 Million In Funding

105 Stories To Learn About Outsourcing

Light-Mode

Classic

Newspaper

Dark-Mode

Neon Noir

Minty

HN StartUps