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Why Should One Invest In Your Startup Business?

Invest-In-Your-Startup-Business

You might have some knowledge about the T.V shows “Redemption Inc., Shark Tank, or Dragon’s Den”? Well, that is what you need to do to make your investor invest in your startup business. Entrepreneurs and business owners present their ideas to the dragons (investors), who are actual business tycoons. The competitors need to please the dragons with their ideas in order to claim investment to run their startup business. These dragons are termed as angel investors. The opponents compete against each other to convince the dragons in their smart investment plan.

It may seem a bit far-fetched but holds great learning opportunities. Budding, as well as experienced entrepreneurs, can avail benefits from it.

How to find an investor for your startup business?

To make one gain confidence in you and your business idea/ sole proprietorship is a tough nut to crack. Many fail to do so as they try to sell their product and not the market.

Now, for instance, your best friend or your father will voluntarily invest in your startup business. But the owner of the shop you visit frequently won’t. Once you’re through the zone surrounded by friends and family, that is when the real competition starts. At times you may need to slog yourself to find and actual investor who believes in your idea.

In order to find ‘the one’, you need to ensure you are looking in the right place. Let’s assume you have a great plan to enhance smartphone capability. Now, if you try to sell it to a furniture mart owner, will he be interested? Of course not, the initial and the utmost important step lies in finding the one who needs your idea for business investment.

One general question for you. Why should one invest in your startup business?

  • To earn more with smart investment
  • Maybe because you require business investment
  • You have the best investment plan
  • Because you’re the best

Sadly, none of the above will attract the angel investors you want. An angel investor in India will only take his chance if he gains his confidence in you. That will happen when you focus on selling the product, as well as the market to him.

Fetching profits will never be enough unless you fetch them within a given period of time. Along with achieving target returns, you need to have a close look at your competitors. They might have a way which you wouldn’t be aware of, and that will increase their chances to steal your angel investors.

Do your homework

All entrepreneurs need to educate and train yourself in each step they take. Do your homework and practice it daily. Learn about what your angel investor in India seeks, fulfil his requirements or watch him go away.

An investor will stick to you as long as he gets good returns but will invest in you more when you offer him returns with contacts and relations. Money may come and go, but you need to hold onto relations and contacts. Smart investments like these play a major role to drive entrepreneurs forward.

For this, you need to picture yourself as a seller, and your investors will be your buyers. Remember to sell your business to your angel investor and your product to your consumer. A consumer will buy your product by the facilities it provides. Your investor will buy or invest in your business when you show him how he can make money from your business.

Keep up with innovation

A couple of years ago, Kodak and Blackberry were the leading brands for the camera and mobile phones. They were loved by the maximum number of consumers but with the emerging technology and innovation, they lost their touch. Kodak offered a vast variety of cameras and blackberry started the messenger trend.

Kodak lacked behind to create efficient digital cameras and blackberry failed to keep up with the smartphone technology. Strong competitors entered the market and these brands were unable to stay back in the long run.

Your brand or your product is what people speak about when you exit the group. Sell the market to the investors and the product to consumers. Make them believe you know the market and the trend. Move along with the trends, adapt changes, and challenge your limitations. Keep implementing new and fruitful ideas, make them work, and sell them.

Know how to control your capital

Have control over your finances; learn the know-how to keep your capital from going down the line. Use it wisely and use it only where necessary. Find ways to capture the market research for your product and make it better than the rest. Study the other competing product ranges and produce productively.

In the end, the ultimate goal is to show the investors how they can make money out of your business and how your financial performance will increase in the future. You need to get your investor to believe that your business is a smart investment and they will incur the profit they’re looking for.

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