Starting a business is a hard task, it requires a lot of attention to details and capital to keep it up and running. It needs equipments, staff, licensing and a host of other unforeseen requirements, as well as expenses. In these hard economic times it may seem a very difficult if not unachievable dream. You may consider a loan from the bank but the interest rates are notoriously high. If you are thinking of an investor, then you are headed in the right direction. With the advent of the BBC programme Dragons Den more and more people are aware of the potential for investment, and there are great examples of people being successful, from companies which sell gift boxes to those which offer intangible services. The truth is there are many people willing to invest in your idea; here is how to attract them.
CREATE A GOOD BUSINESS PLAN
Creating a good business plan is the foundation of a getting real investment. A business plan outlines what your vision is, detailing what you plan to do to achieve it, and what you need to get there. A great plan should convince your investor of sound returns hence include figures and estimates of anticipated revenues and expenses. If you cannot test your very own market, then test for similar businesses that are successful in the market to come up with accurate figures.
CAPITALIZE ON TRENDS
The best way to be assured of success is having products that are actually on demand in the market and have had a proven market. Once in a while some entrepreneur comes by and shocks us with something new. However, most investors will only feel safe investing in a business they can easily predict to succeed. By capitalizing on trends, people will be willing to invest in your business.
SHOW THAT THE DEMAND IS SUBSTANTIAL
Demand alone is not an assurance for the future of the business; most investors would want to put their money where the project has long term benefits. In this area you need to use statistics from census reports, relevant articles or from the internet. You may comment that despite the competition in the market, your special discounts and rates may become favorable to the business in future.
DISCOVER YOUR NICHE
A niche is essential for selling a business. It involves targeting a particular demographic to market your product to. It may involve age groups, races or genders. Take advantage of diversities and pick out your target group. Specializing in a market group will allow you to create robust and stable sales.
MAKE A MARKETING PLAN
Once you discover your niche and identify the product that you will sell to them then the next step is to reach them. The only way to get your product to sell is by advertising and through the right channel. Creating a marketing plan allows you to invest proper thought into how this will happen and what resources you need to achieve this as well. If you are targeting young people, make plans to advertise on social media, if it is business executives, use financial magazines. Essentially, just know the right platform to reach your target group. Always have your business cards or brochures with you…and make them attractive.
BE SPECIFIC ON YOUR STRENGTHS
Let your investors know how experienced you are in this area, if not convince them of how what you have could actually be useful and eventually fruitful to the business. You may add on anything else that you think may impress your investors such as personal achievements and probably educational background. Sell yourself well.
OUTLINE HOW YOUR BUSINESS WILL FUNCTION
This is an essential part of your plan; it will show your prospective investor how the business will run. If you are selling tangible products, outline how they will be stored, delivered or procured. If it is a service business it will describe generally how a customer should be treated. If you are planning to sell you business in the future then it’s also important to note that these things should happen without necessarily needing your input.
GET OVER YOUR FEARS
Most people fear asking for money. You may have that killer idea, that spectacular plan, and well thought out business process. Without adequate funding, you won’t probably get much. Get over your fear of searching for funds; investors aren’t that bad. The truth is that you never really know until you try. You may be surprised at the number of people that may want in on your business.
This is a guest post from Tom at SEO Travel, a company which helps small travel businesses market themselves.