You've got the perfect business idea. And the passion for seeing it through. Plus, the support of family and friends.
Unfortunately, that's not enough to get your business off the ground. You need money. And you may need more than you think.
This is why it's so important to find investors who can get behind your business idea along with you. Of course, not every so-called investor is a good one, so finding the right investors takes some wisdom.
Here's a rundown on six tips from the pros on how to find investors.
Let's get started!
1. How to Find Investors: Find Trustworthy Investors
It's critical that you choose investors with whom you feel comfortable opening up. These investors should also believe in you.
The reality is, you may go through a great deal of change in your company's earliest stages. In light of this, you need investors around you whom you know you can trust when you're in your most vulnerable moments.
2. Find Honest Investors
Be sure to choose investors who truly understand your product's or service's market. Your investors should also be passionate about what you have to offer, and they should be able to give you excellent introductions and advice.
However, at the same time, they also need to be straightforward with you. Investors may tell you things you don't want to hear at first, but that advice may end up saving your business one day.
3. Find Investors Whose Interests Align with Yours
To excel in your business, you should make sure that the investors you want are interested in what you have to offer. Otherwise, you won't be able to accomplish your business goals in a manner that gets both you and your investors excited.
For instance, avoid working with investors who are focused on getting a return through an acquisition or exit. Instead, look for those who would like your business to be sustainable and long lasting, and who are committed to your unique mission.
4. Find Problem-Solving Investors
Investors should help you to solve problems, not get in your way as you attempt to execute on your vision.
For example, if you are having trouble with customer relations, it's a wise move to find investors who are skilled in this area and will give you plenty of feedback and support without necessarily requiring you to give up one of your board seats.
5. Find Investors from Various Industries
If possible, surround yourself with investors who work in different industries. For instance, your investors could be tech company chief officers, musicians who have won Grammys and executives at ad agencies.
Having diverse investors on board is especially wise if you have a relatively young team. After all, a smart investor with diverse experience can either make or break you in the business world.
6. Find Investors Who Can Fund Repeat Investment Rounds
Locating new investors for each new round of investment can be both time-consuming and expensive.
For this reason, be sure to choose investors who are used to taking part in additional funding rounds.
How We Can Help
If you're wondering how to find investors, we can help. Our goal is to empower and uncover problem-solvers who are trying to bring powerful ideas to fruition.
We are especially passionate about helping black, brown and female startups to gain the capital they need to achieve their business goals.
Contact us to learn more about how we can help you to thrive in today's competitive business world.