Securing Investments In Your Start Up!
On : November 7th, 2014By : Taskr.in
Time is severely blatant for an intangible unit. It seems to play with merriment when you try to make speedy profits in the market. It’s a conscious savant when you suffer losses. It can be an infuriating runner for the ageing investor; a lethargic disinterest for a youthful dealer. But most of the times, time is an impulsive escort, faithful to none, yet equal to all.
When you converted your business idea into a running business unit, securing your investments become mandatory in order to help expand your business at a later stage. But it is not as simple as it seems. Walking away with the desired money from your potential investors is not that easy. Justifying your need for the money has become essential today. Securing investments is as important as building your business.
Let us discover our options and see what all can we do in order to secure investors and investments.
Do Not Limit Your Options to Just the Banks
Do consider looking beyond the bank, especially when you are making decisions about buying fixed assets like machinery for example. Sometimes, it is worth to ask your supplier himself whether providing finance is of not any issue to them.
Proper Market Research
Do make sure that you do your survey and ask around to see how others have managed to secure investments and faired their funding in the past. Seeing that an investor possesses knowledge and understands the appreciations and depreciation of equipment will obviously have lesser risk and would be more willing to lend.
Considering Variable Rates – An Optimum Way of Securing Investments
When most companies start, they need to know what exactly they had got going out each month. Here variable rates could seem like a high level risk and not worthy of taking. With reserves of cash building up, variable rates could be tried. If you can make the risk on a variable rate pile up, you could possibly have more deals to choose from.
Ask For Prudent Advice
If you ask your investors for advice, it can be a great way to share your ideas without asking for investment and funds directly. This medium is helpful, especially when connections are not in your forte. Do ask about how to pitch to potential investors or to present your company idea and yourself or whether you can be introduced to someone etc. If, in case interest is shown in your company, you can enhance the transaction by offering a small equity stake.
Insure Your Portfolio
In order to save yourself from any irrevocable loss, insuring your portfolio is a wise thing to do. A dead man will not rise from the dead, but a portfolio can rebuild itself after a downfall. Insurance does represent itself as an expense, more than an investment. However, it is as big as an investment when necessary. Securing your investments is not as easy as it looks, you have to underline all dimensions and think wisely.
Do Not Forget That YOU Are the Investment
Most entrepreneurs fail to realize it, but in the initial phase of raising funds, potential investors don’t really spend their money on the idea of your business, but on the entrepreneur himself. When you are securing your seed funding, you have to be polished. You should know all the numbers and degrees of your idea and company. You, as the whole sole owner of your firm, should present yourself in a way that will create confidence of the investor in your abilities as a budding entrepreneur. Potential investors are actually deciding whether they think you can run a company and manage the challenges in running a startup, or whether your company is a practical business venture.
Make sure that you make use of all these tips in securing investments that are important for the smooth running and further expansion of your business!
