Funding & Investors – How to Close a Deal When You Have No Investors

Funding & Investors. The first two words define the investor groups that are very important to your business’s success and survival. Investors are usually wealthy people or corporations who purchase a certain amount of shares of stock from you in exchange for regular payments. They use the money they pay you as a down payment on your new startup. The reason they provide you with this money is that they believe in the business you have started up and it will succeed.

Funding  Investors

Investors are very important but not as important as your business plan. Your business plan is what describes how you intend to use the money raised for funding. In your plan, you should detail exactly how much the funds will be used for and what you will do with it once they are gone. Without this information, your investors may believe you are a scam because you don’t tell them exactly how you intend to use the capital funds.

Finding investors can be tricky. You should try to find some experienced investors who will invest in your startup. Since you are relatively new, your competition is stiff. Because of this, they may want to invest with you in the hopes of making some profits off the bat. Keep in mind though, that they won’t want to risk their capital because you are still very much a new business.

To get their interest, you need to show them you are serious about your business. Create a vision for the business, where you see it going, what you intend to do with it in the future, and who you are as a person. Also, come up with a business plan to explain exactly how you plan to carry out the business. This plan will also serve as your presentation to potential investors.

Once you get some funding, make sure that you keep all communication lines open with your investors. Ask them when they might expect to hear from you again. Follow up with them at least once a month to ensure you haven’t missed any payments. If you are able to, you should speak with them more frequently throughout the course of the startup’s development.

As you can see, it isn’t so cut and dry when it comes to securing funding and investors. There are a lot of details that you need to consider and remember. However, if you take the time to do some research, you should be able to secure enough funding to start and maintain your business. Keep in mind though, that you will likely have to wait several months before you hear back from any investors.