When it comes to quick business tips for entrepreneurs seeking investment, we should start by pointing out the four most common business funding sources.
- Conventional Banks
- Investment Funds
- Angel Investors
- Accelerators
For each type of business, one of these sources of investment will be the most appropriate.
In this post, in addition to several quick business tips for entrepreneurs trying to choose the best business investment sources, we’ll show you how to impress these investors and also, how you can find them.
Check it out: Inspirational quotes for business success: 20 quotes to inspire you
6 quick business tips for entrepreneurs looking for capital
1- Your business is only based on a “great idea”
Make no mistake, hardly anyone will invest solely on an idea presented in a Power Point presentation. In this case, an angel investor can always appear (but it will be difficult to convince them).
They are a kind of ‘joker card’ with their investment fundraising options because it’s their personal decision.
Therefore, you can look for them at any time, but the more your business has advanced, and the more prepared your planning is, the greater your chances are.
However, if your business is at this point and you need money to move forward with your project, ideally you should look for someone else to help you, a partner who, in addition to money, is part of the team and works with you.
2- Your business has already had some good results
The best quick business tip for entrepreneurs who have a startup that’s had some good results and has one or more full-time dedicated partner involved, is to search for Accelerators.
These institutions select startups that they believe will work and also have rapid growth potential.
The advantage of Accelerators is that they’ll not only provide capital, but also provide mentoring, training and empowerment.
3- Your business is already established, with a defined model
In the case of businesses with at least one MVP (Minimally Viable Product, let’s talk more about this later) that’s already being accepted by the market, and has reliable, trained staff and consistent employment and product growth, mutual funds are a good option.
Conventional banks are always harder to convince than investment funds, which often seek venture capital firms for investment.
A site that provides a lot of information on mutual funds is CrunchBase, it’s well worth a visit.
But how do you find the right funds or even angel investors? And how should you present your business to them?
It’s quick business tips for entrepreneurs like these that we’re going to show you now.
See also: How to get small business investors: Show that it works!
4- Creating your business plan
The most efficient way to show you have a business that works and which will give a sustainable profit (with just a small investment!) to any type of investor is with a business plan.
But this is not exactly the simplest thing in the world to do, unfortunately.
Our quick business tip for entrepreneurs who have no practice in this type of activity is to use the established canvas business model.
It’s easy enough to put together and, best of all, it’s kind of a fad among startups. It’s also very much accepted by investors.
Want to know everything you need to make a perfect business plan?
Then read these very complete posts from our blog:
- How to Organize a Small Business Using the Canvas Model
- Lean Business Model Canvas: For Every Type of Organization
5- Creating your MVP
A way to test whether your business plan will really work is to create a Minimally Viable Product.
That is, a simpler and less complex product (or service) than your ‘cool idea’, which will help you refine your business plan and model your business processes.
One of the world’s most famous MVPs was the first version of Facebook, which was restricted to Students at Harvard. This allowed its creators to study a smaller market and the functionalities of its social media.
What do you think about these quick business tips for entrepreneurs who want to know how to set up a startup?
Here’s how to try to get in touch with a good investor.
6- Finding a good investor
The truth is that someone needs to introduce you to an investor. Without this, your only option is to apply for selection processes with accelerators.
Research about investors or entrepreneurs who have also been able to develop their business with the help of angel investors or investment funds. Then try to find common contacts, search social media, for example, and ask them to nominate you.
If you can secure a presentation opportunity, you already know what to do next: Take your business plan and do the best presentation of your life!