Everyone knows that it’s very difficult if not practically impossible to set up a business without making investments. The key is to sell yourself and what your business is about as best as you can without coming off as hypocritical. For example, let’s say that you have an idea for setting up a tutoring center for at-risk children.
Now you need to convince people to investigate your idea. One way you can start is by convincing them that most of those children come from broken homes, don’t have a lot of easy access to most resources and are in need of all of the assistance that they can receive. Secondly, you need to investigate whether you will have any competition and if so, who they are, what you’re planning to do differently from them and the alternate investments. You also need to be on the look out for possible identical investments since that’s counterproductive to attracting clients.
As a result, you need to ensure that your investment will stand out from the others. The next step is perusing your investors’ profiles in order to find your target investor (i.e. the one who comes the closest to agreeing with your cause and is, therefore the most likely to invest in your idea), investigate whether all of your investors are actually looking for an idea like yours. Also, you need to ensure that the investments will fit the bill. If not, you and your investors will need to reach an agreement for some type of make-up compensation (such as annual returns).
It is not adviseable to send them bulks and bulks of paperwork. Also, you always need to be aware of the legalities. For example it is always advisable to seek out the FSI’s-financial service institutions-involved for the legalities on the financial advice. Disclaimers can also be very helpful in preventing a lawsuit, seek legal advice for this if you feel the need to but in most cases, disclaimers are very clear and self-explanatory.
If any of your competition happens to be identical to yours, you may especially want to figure out a way of charging your clients so that it can fit their budgets and yet also keep your business running. When running a business, you can’t be worried about losing clients due to your pricing not fitting your budget. Also, you overall need to make a very strong case as to why your idea is better than your competition’s.
Finding a â€œgood investorâ€ depends on you and what sort of investment you’re seeking. It also depends on whether you’re a high or low risk. For the former, you probably want to think shares and bonds; whereas for the latter, you can seek out higher interest accounts. Remember that you do not have any control as to where the investment money goes so choose your areas carefully. Never hesitate to seek out alternative investment markets, which often offer high returns.
At the end of the day, finding a good investor is a matter of doing your homework and preparing well.