Do you have a great business idea? Follow these tips to get investors

Make sure you show those investors that by putting their money into your business, they are securing a promising future.

Having a great business idea is not easy for some people, but for others it comes naturally; what is not so easy is getting the money to push that idea forward and turn it into a business that generates a return, in short, that is profitable.

Thanks to this same problem, investors emerge, which are people and organizations that have enough capital to invest, as its name indicates, in businesses that they see very promising.

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What usually moves investors?

Many investors do not have the ability or time to think or dream of a business, but they do have the intellect (and the money) to know how to choose carefully which one they would like to work with. Let’s say they are metal detectors that can locate any kind of valuable jewelry in a desert and then exploit it to make a lot of money.

Another reason that motivates investors is not that they don’t have good ideas, but that they don’t have the time to lead each project, so they look for not only good ideas but good entrepreneurs capable of carrying out that and other projects.

An investor invests part for the idea and part for the entrepreneur. It may be the case that they like the idea but do not trust that the entrepreneur who offers it is capable of carrying it out, or vice versa, perhaps the idea does not convince them but they see so much potential in the entrepreneur that they try to see how to evolve or pivot the idea to reach an agreement and grow together.

If you have a good idea, in which you believe and have a lot of faith, but it turns out that you do not have the monetary capacity to execute it, surely you have already thought about contacting an investor, but how can you make him/her notice you, having so many people out there who, like you, dream of starting their own business?

First, you must make sure you turn that idea into a detailed and formalized business plan, which explains the reason for the existence of the future company. Investors get bored watching a person talk and talk without explaining why they thought of doing what they are doing, what they are doing to solve or improve, so it is important that you get to the point and start developing a good plan.

Practice your presentation to investors

If you’ve been dealing with these people for years, you probably won’t feel as nervous about dealing with them anymore, but if you’re an amateur entrepreneur, you’ll probably be a little uneasy.

  • The first thing you should do is stop being uneasy, relax and feel like explaining your dream to a friend. It is important that you are punctual and that you leave well presented.
  • Prepare the room where the meeting will take place and make sure you have enough and ingenious support material.
  • Don’t make those typical PowerPoint slides with too much text, as they will bore the readers.
  • Use good-sized, high-resolution images to capture attention, remember this is your chance to promote a dream, so show that you have put a lot of effort into it!

Use appropriate and uncomplicated language when expressing yourself. Write down the topics you want to talk about in advance and teach them as many times as you can so that you don’t leave anything out. The spelling used in the support material is very important, and the tone of voice you use will also be important. Ideally, don’t use a boring tone, but don’t use a tone that is too exalted or alarming.

And above all, be clear about your business plan. It’s your baby, and you’re supposed to have spent a lot of time shaping it, so be prepared for all sorts of questions that might be asked. One of the biggest mistakes entrepreneurs make is not knowing exactly – or even approximately – the money that will need to be invested to boost that business, and that bothers investors a lot because come on, it’s their money, they want to know how much, how and what they’re going to have to spend it on.

It shows passion and conviction, because if you had a good reason to fall in love with that idea, others can have it too, it’s just a matter of letting them know why you are the exception and why it is in their best interest to invest their money in you.

Be cautious about participation rates

One of the first things they agree to when they agree to finance your business is the equity you will give to those people, that is, the percentage of the company they will stay with. The more they own, the more money they will give you, but as tempting as these offers may be, never agree to give more than a third of the company to these investors. I know this seems to be the solution to all your problems today, but you can’t live in the present forever.

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If you plan to continue your business in the future -which is the most obvious and sensible- then do not accept to give more than a third of it, because as time goes by you will probably need more investors and therefore you will have to give more and more parts of the business.

Know your numbers well

To calculate how much money to give and for how much percentage, you must have very clear all the numbers. First you have to value the company in an amount, be it 10,000, 100,000, a million… whatever, but they must be realistic and justified numbers in something.

There’s nothing worse for an investor than seeing inflated or overly optimistic numbers. You can believe a lot in your idea and make very promising calculations 3 years from now, but an investor wants real, consistent numbers.

Create an MVP (Minimum Viable Product)

If your idea is very good and you know how to sell it very well, maybe a few slides will be enough. But generally it is always better to have an MVP, something basic with which to start testing the market and selling your idea.

Sometimes a MVP can be a basic programming of the system you want to do (in case it is an app or software), in other occasions it can be a video, a simulation of what will be the product, either with a mock-up or a 3D. In others, the designs of the packaging, the name or the brand to be used, all that shows coherence and planning.

There are many ways to approach a MVP depending on the sector you are in and your idea, so investigate thoroughly, as it is a very important step, not only to find investors but also to test your target audience and see if they are interested, as well as receive feedback, ideas to improve or complement it. Here we leave you a post so that you can get more involved in the creation of your ideal MVP.

Make use of the wonders of the Internet

The Internet is here to stay and therefore a good step for you would be to take advantage of it. Promote your product or business idea (or your MVP) on social networks, especially on Instagram and Facebook. In the slides you will show to investors convey the reach they have had. By seeing how much people like it and reading the positive comments regarding the product or service, investors will be convinced that they are indeed investing in an idea that can become a complete success.

Know what investors want to achieve

There are many types of investors and with many types of personalities, but if there is one thing they have in common it is that they look at the same three things: Who is the entrepreneur? What is the idea? When will I get my money back if I decide to invest in your business? And this last question is the one that often makes no agreement.

To avoid headaches and disappointments, it is important that you get your head around the issue, as we have said above, and that you can demonstrate to investors in a quantitative way when and how exactly they will be able to recover their investment, including financial balance sheets and approximate dates. If you are a person who is intimidated by arithmetic and mathematics, hire a professional who can make these projections for you. You won’t be skimping because this point is extremely important for an investor to look at your business plan.

Stick to existing problems and don’t create new ones

Getting inside the heads of investors is going to be a difficult task, so trying to plant ideas in their minds will ensure a big “no” in response. To avoid this, you better study the problems that already exist, for them it will be more attractive to see how you can solve the problems they already have instead of seeing how you invent new obstacles for them to overcome later.

Think that you are just one of hundreds that they have to read or see every week, they don’t want complications, they want you to state your reasons confidently, solidly and of course with a very striking story behind it all. That your business plan is readable by anyone and very tasty, and always remember to select a problem and the solution for it, again, do not generate more problems, solve an existing one. 

Get serious about your business

If you want to win over a very serious investor, logic says that you must also act as a serious entrepreneur. Most people are afraid or lazy to do detailed market research to find out how likely their business is to be profitable. When they don’t do this research, they don’t feel compelled to sell the idea to someone, so they choose to borrow money from family members or loved ones. What they don’t know is that at that point they put the noose around their neck.

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When a trustworthy person is the one who lends us the money, the tendency is to go quietly, without hurrying to pay it back, thus generating stagnation in the growth of the business and breaking valuable interpersonal relationships.

This is why the best option is to contact a private investor, totally unrelated to you, who will motivate you to do all the research work that you would not do with a relative, because you must answer to this person for good reason.

Synthesize the business plan

After so much talking, some ideas may vanish or be forgotten, so a good alternative to this is to make a summary of your business plan and attach it to a document you can print out. At the end of the meeting you will give a copy to each investor so that they can calmly detail it and sleep on their decision.

How to start your own business without money?

The first thing we ask ourselves when we think about starting a business is how to start your own business without money. Is that possible?

We have this idea that in order to create a successful company, we need big capital, profitable business ideas and a lot of technical knowledge especially in finance and business management.

But in Superhábitos we know, from our own experience and because we talk to many successful entrepreneurs and businessmen, that this is not the case.

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You can start your own business from scratch without money, from home and right now.

By the end of this article, you will be able to start that project you want so much to have.

The most profitable business idea

We know you don’t need a lot of money to get started. The most profitable business idea is the value you have to offer, what problem you can solve for other people and they are the ones who will pay for you to ease their burden.

  • Think about what you pay for every day.

You pay for a bus ticket, a taxi fare or the petrol at the petrol station. Why do you pay the taxi driver, the bus company or the owner of the petrol pump? Because you need to move from one place to another to go to work and they solve the problem for you. Thanks to them, you don’t have to walk and leave two hours before you get home. That’s why these people were able to create companies around that, because there are many people who have a problem and they solved it in different ways.

  • What else do you pay for on a day-to-day basis?

You go to the supermarket, to a store (if you are in Argentina, also to a kiosk), to a pantry to buy food and items you need for the house. Most people, especially in big cities, do not grow all their food. So a clear need is to get food somehow. Those who have shops and supermarkets solve that problem. Everyone knows that if they need to get food, they will be able to solve that need in these places. And they are the ones who pay for it.

As you will see, in these simple and basic examples we can notice that to start a business you don’t need a revolutionary, innovative idea that nobody thought of before. You need to identify a clear need of a group of people and have a product or service that can solve that problem.

Before Super Habits, we had an online store for women’s accessories. How did we come up with this idea? We asked ourselves “what can we do that will be easy and sell well all year round?

Big mistake.

After 2 years of working with an idea based only on selling it and making it easy, we couldn’t grow and didn’t enjoy what we were doing.

When we decided to focus on adding value, thinking first about what need we can satisfy with what we have to contribute and we created an idea from there, Super Habits was born and after more than a year we are convinced that this is the best way to start.

The best business idea will be the one that combines other people’s needs with a real value that you have to contribute and solve their problems.

You can start your own business without money

Of course, in many cases, many business models require a significant capital investment. For example, if you want to set up a box factory, you will probably need specific machines and a particular infrastructure for this.

But that is not a determining factor. You can start your business without that big capital and still be successful.

We started the Accessory Store with $120 Argentinean pesos. To give you an idea of how little it is, it would be something like $12 dollars. Although after a while we felt stuck and decided to close it, we never lost any money, and we managed to make it profitable.

You don’t have to have a business location to start selling something. You don’t need to have a super website to start an online business either. You don’t even need to have something in your hands to start selling it.

What you have to do is start. From there everything is profit and everything you re-invest in your business will make it grow.

If the value you have to offer is in the form of a service, you can start by offering the service to those you know at a relatively low price, and if they hire you while you give that service you are recording everything you learn, what works and what does not, and by the time you have your second customer you will have improved the system and learned a lot.

This is a way to validate the idea you have too. If no one is interested in the service, or if no one wants to pay you for it, then maybe it means that there is no real need or that you are not selling it properly.

The whole experience of starting out without any further thought will serve to improve, change and perfect your product or service.

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Starting a business without technical knowledge is possible

You can start a site on the Internet, you may want to create niche pages and sell advertising or put up a shop and sell some product without knowing about programming, without being an expert in online advertising or without having had many shops before

There are three key skills to be able to start your own business without having technical knowledge as an exclusive requirement:

#1 Knowing how to learn: nobody knows everything, and nobody has to know everything. Each person is unique, each of us is very good at something and not so good at other things. But we can all learn anything. Just because you haven’t studied something at the University doesn’t mean you can’t learn it, by taking a course, asking who else knows, or with the simple and powerful help of Google.

#2 Delegate: some things are better delegated. If you are not an expert in graphic design, you can delegate the graphic design work that would take you a month to learn, to a person who can do it in two hours. Sometimes it is convenient to make the investment and delegate a job, so that you can use that week in tasks that are indispensable to do them yourself, tasks that are central to the business.

#3 Teamwork: always, but always, teamwork is worth gold. If you have a team to work with and complement each other, you can achieve more than anyone else and complement what everyone knows. In SH we are four, super different, with different looks and skills, and we organize ourselves to make the most of each one’s talents. In this way, we all learn new things permanently but we optimize time when each one is in charge of what they can do best and what they know best.

Learn how to invest in a business wisely

So that the Open sign continues to invite passersby to enter your business over the years and become part of the 50% of businesses that survive the first year of life and 70% of those that do during the first three years of existence, we teach you everything about how to Invest in a Business wisely and intelligently, knowing how to analyze the market and determine if your supply is in demand and how to manage it to make yours a business that lasts and is profitable.

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Infallible Rules for Knowing How to Invest in a Business

The following rules are highly effective, so if you follow them, you will be applying the basic principles of How to Invest in a Business Successfully:

  • Knowledge: you must know exactly what you’re going to invest in and how it works. Regardless of whether the business model is in vogue, has been successful for many and has made millions of others, you must understand exactly how it works. This means knowing what the monthly expenses are, both fixed and variable, understanding how income is generated, how customers are attracted, and what the real profit is that all the investment and fixed expenses will leave you month to month.
  • Sensible Investment: to understand how to invest in a business is to be clear that the money that will be used for investment is the money we have saved and is in our bank account, which means that we will not need that money for daily, monthly or annual expenses that our budget requires. Otherwise, to know how to invest in a business is to know that the money you invest should never be the one you don’t have too much of, since every investment, as safe as it may seem, implies a risk in which you can lose everything. In turn, the most advisable to invest is that when carrying out the business plan, we have enough money in reserve to cover the expenses of the company for a year, without depending on the profits of the same. In this way, we will avoid an imminent bankruptcy to which not having profits the first months can lead us.
  • Analyze your Entrepreneurial Profile: in general terms, there are no businesses that are good or bad by themselves, but rather they are according to the needs and profile that each entrepreneur has. This implies knowing your personality and analyzing whether it fits the requirements of the business, while determining whether your needs, both financial and in terms of daily routine (creativity, challenges, stability, predictable factors) are covered by the type of business you have chosen. Understanding this is understanding How to Invest in a Business.
  • Your Business, Your Passion: business is not magic, no venture is a gold mine in itself, but discipline, dedication, ability and wisdom are the factors that will give you success when you ask yourself about How to Invest in a Business, and you can only have and apply them if you really love the venture you have embarked on. The working hours are long, the responsibilities infinite, the competition cruel, so that you only have left the passion for the activity in which you will spend more than a third of your life to give you encouragement and invigorate your desire to undertake each new day that begins.
  • Meet Successful People: Get close to friends or acquaintances who are currently running a successful business and learn about their How to Invest in a Business methods. Ask them how they attract customers and how they beat the competition, among other things. The idea is that you can absorb and apply the best that they are doing, being able to translate it to the needs of your own business.
  • Be an Expert: once you have identified the business you will be working in, become an expert in the field. Even if you are planning to hire a chef for your restaurant, don’t rest on your laurels, but take a chef’s course yourself, as this is the best way to ensure that things are being done right. Don’t fall into the mistake that many businessmen have of controlling for the sake of controlling, indiscriminately and without knowing what they are talking about. If you train as a professional in the area in which you will open a business, not only will you be applying one of the golden rules of How to Invest in a Business, but when you correct something, you will be doing it from a theoretical base based on professional training and not from excessive control.
  • Read Business and Motivation Books: the former will help you with the business techniques you need to develop and strengthen; every day you will learn new knowledge that will help you be a better entrepreneur, a better boss and a better person. In the case of the latter, i.e. the motivation books, they are one of the most important motivational points when evaluating How to Invest in a Business, since things will not always go smoothly, but what should never be lost is the motivation with respect to your objectives.
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Importance of Knowing How to Invest in a Business

The difference between mastering the techniques of How to Invest in a Business and groping is the difference between a detailed investment analysis and a bet. Would you bet your savings on roulette? Well, that’s exactly what you’d be doing if you didn’t follow the rules that teach you the step-by-step art of business investing.

Regardless of whether your chosen venture is in high demand in the market or is a new niche market with high acceptance and low supply, you should follow these steps to ensure that you are walking on safe ground and not on an unpredictable tightrope that can take you out of the way without warning.

What’s a Startup?

Thanks to the Internet, we have changed the way we communicate, inform and organize our daily lives, but it has also transformed the way we start a business. Thanks to new technologies, anyone without a huge capital can implement your idea and meet a need through the startups. Even some large companies, such as Amazon or Facebook, started out as startups. So… What’s a Startup?

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A startup is a new or early stage company that has great growth potential and markets products and services through the use of information and communication technologies.

It is relevant to know how to distinguish between conventional SMEs and startups. Conventional SMEs come to market after investing a certain amount of money and must wait a while to start enjoying benefits. Startups, on the other hand, quickly go to market to achieve the necessary growth and financing through the digital transformation.

In short, startups are characterized by being:

  • Young: companies familiar with a young, modern and technological environment, which after being born, try to get financing. With the aim of evolving into a small or large company or directly sell the idea to an already established company.
  • Scalable: the main attribute of a startup is the speed and capacity with which it can grow and generate income quickly. Also, they are able to increase their production and sales without increasing their expenses. Therefore, their production and profit margin grows exponentially. Thus, despite their small size, they are able to generate very high revenues.
  • Technological: these are businesses that are based on innovative ideas to satisfy a new need in the market. These entrepreneurs rely on digital technologies to evolve. Moreover, thanks to the interconnected digital world, they have the possibility of finding the essential funding to be able to develop their idea.
  • Small costs: the starting point for startups is to keep production costs low in order to grow faster. For example, in their beginnings they usually develop their business in coworking spaces, without the need to have an official company headquarters.

What is necessary to start a startup?

Now we will explain the requirements that any startup must meet:

  1. Think of solutions to everyday problems: the philosophy of startups is to find practical solutions to everyday problems, whether it is shared accommodation, moving around a city or making a purchase easily and safely. Usually these needs are common to most of society, so the chances of the idea working are high.
  1. Search for creative and practical solutions: startups, besides being profitable businesses, are also based on simple and creative strategies, which no one has ever put into practice before. For this reason, their growth is rapid and their business model is attractive to customers.
  1. Think of solutions that are scalable: the service they offer has strong growth potential to achieve rapid profits and gains without the need to invest in infrastructure. For example, develop your business’ website or mobile application once and from there, many people will be able to buy your service or product without you having to invest more time or money.
  1. Using technology to offer the best service or product: any startup, regardless of the type of product or service it sells, relies on technological and innovation resources to achieve an online sales channel, better web positioning, digital marketing, as well as improving the production process.
  1. Establish what the objectives and deadlines are for each one: a startup must have very well defined short, medium and long term objectives. This is of great help to maintain order and direction in the project.
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  1. Plan the business economically: define how much budget you need to start the startup and how much money each partner will contribute.
  1. Look for crowdfunding: if you do not have enough budget to develop your business idea, you can look for financing through crowdfunding. To do this, you must publish your idea on a crowdfunding platform in order to find people who will support your initiative and provide the money needed to get it off the ground.
  2. Form a team: make sure you have a team ready to create your startup. You do not need a large group, ideally each member should contribute something significant to the project.

10 STEPS TO START A BUSINESS

Although it is true that all roads lead to Rome, one must know very well which path to follow within entrepreneurship in order to be successful, its important to know the steps to start a business, since in many cases, due to small mistakes (which seem insignificant) the “startups” thunder at the first attempt.

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Many believe that entrepreneurship is easy and underestimate the activity, but we must take into account that although “Entrepreneurship is for everyone, not everyone is for entrepreneurship”. What does it depend on? There are political, social, economic and, of course, personal factors. Here I share with you the ten steps to start with that business that has been going around in your mind so much, so that you start off on the right foot. 

1. Define the reasons. If your motivation is to make money, you’d better look for a traditional job; really identify what moves you to undertake 

2. Evaluate yourself. Take into account whether you have what it takes or are willing to learn it, if not, go your own way on the other hand

3. Select an idea. Everything your mind can believe, it can do; as crazy as it may seem, it is a matter of focus and perseverance 

4. Define a business model. What will be your product or service, what is your target market and what makes you different from others? 

5. Draw up a business plan. In a document, describe your company, market strategies, objectives, investment, profitability, etc

6. Form your team. Great entrepreneurs surround themselves with people who are wiser than they are, select people with your same passion 

7. Seek funding. If it is possible to obtain financial support from a person or institutions (such as INADEM), compare options  

8. Get to work. There will never be a perfect project until you experience it in practice, throw yourself into it and learn from trial and error 

9. Disseminate and promote. Let everyone know what you have to offer, take advantage of technology and don’t forget the word of mouth recommendation, nor your website 

10. Learn and specialize. Know your customers, suppliers; real costs, execution times, etc., and polish your business more and more