Fundraising is one of the most difficult tasks that every new entrepreneur needs to do. The new business owners do not have much credibility in market. Thus, despite presence of a number of investors, these businesses often face difficulty to gather adequate financial resources. Here, Justin Urbas, has suggested few ways that you can use for having a sound fund.
Identify the right investors:
Identification of the right investors and approaching them in proper way is the first step of fundraising. It is true that for news ventures, getting right investors may be difficult. However, you can look for the investor among the followings-
- Your family and friends- First start the search within your known circle. It will be great if someone from your family or friend can help you to run the business.
- Search the angel or hedge investors: These investors often prefer investing on new businesses. You can seek help from these angel or hedge investors too for collecting money.
- Know the potential strategic partners: There may be many companies which can be your potential strategic partners.These businesses can invest something more than money on your organization. You can look for such strategic partners too for raising fund.
Behave professionally when you are approaching to investors:
Professional behavior is another key to convince the potential investors for investing on your business. The task will obviously be difficult initially. On the first meeting, investors may not show interest to provide you financial support. However, in that case also, you should follow up these investors regularly. It may happen that later you can get positive sign from them.
Know your USP: To attract the investors, stating them clearly about the USP is necessary. If you have something new to offer, attracting investors will be easier. Before approaching investors, know it and present in proper way so that they find you reliable.
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