A good team of investors can be the foundation of your startup\u2019s success, but a bad one can obliterate even the strongest ideas. Investors can provide your business with more than capital \u2014 they can become resources for organizing, marketing, and realizing ideas. Knowing what to look for in an investor and being able to attract the best kind of investors are vital skills for any new entrepreneur.<\/p>\n
As a newbie with limited experience, how do you convince potential investors you are worth listening to \u2014\u00a0and<\/i>\u00a0get them to buy into your idea? Here are two qualities I strongly believe are key:<\/p>\n
Communication<\/strong>: In a time when people are constantly connected online, it\u2019s essential to be good at correspondence in its simplest form. People hate being relegated to your voicemail, and unanswered emails make it appear that you don\u2019t have time or don\u2019t care about responding.<\/p>\n Our investors know they can call me anytime, and I\u2019ll always pick up the phone or get back to them quickly. Respond to phone calls and voicemail messages and make time \u2014 not just to read, but also to thoughtfully answer emails every day.<\/p>\n Honesty<\/strong>: Being truthful is obviously non-negotiable. If you misrepresent yourself or your business, you\u2019ll be dead in the water.<\/p>\n It\u2019s natural to think seducing investors with best-case-scenario figures is the most effective way to get funding for a new project. Actually, the opposite is true. Nothing will torpedo an investor\u2019s confidence in you faster than projecting everything through rose-colored lenses.<\/p>\n Making cautious or even negative projections shows investors you\u2019re honest with them and also capable of being realistic about your project\u2019s potential problems. Underpromising and over-delivering is your best bet, and an honest assessment of a project\u2019s strengths and weaknesses is crucial.<\/p>\n Once you\u2019ve established yourself as accessible and trustworthy, you will not have to go out of your way to land the investment. Take these steps in advance to increase your chances of sealing the deal:<\/p>\n Getting the\u00a0right<\/i>\u00a0investors for your project is just as important as being able to attract investors. Here\u2019s what I advise upcoming entrepreneurs look for in their investors:<\/p>\n Diversity<\/i>: The more well-rounded your investment group is, the better suited they\u2019ll be to address the challenges your company will face. Look for investors with diverse backgrounds and experiences.<\/p>\n Positivity<\/i>: Supportive people can be the difference between a project\u2019s success and failure. No company can grow without encountering problems. Finding people who remain confident through these times can improve your chances of success.<\/p>\n Investors are vital in far more ways than just providing cash. Depending on the arrangement, the right group can become unofficial consulting firms or even assist in day-to-day operations. My current partner, Ryan Goldschmidt, first invested in a nightlife venue he had neither the experience nor the skills necessary to operate. After an exhaustive search, he found a company willing to invest in the buildout with the skills to operate a large venue and the capital needed to make the necessary improvements.<\/p>\n Of course, some investors prefer to remain at arm\u2019s length. Either way, your team of investors can make or break your startup. Always approach potential investors with honesty and confidence, and don\u2019t forget to be picky when choosing the right people to partner with.<\/p>\n The Young Entrepreneur Council<\/a>\u00a0(YEC) is an invite-only organization comprised of the world\u2019s most promising young entrepreneurs. In partnership with Citi, the YEC recently launched #StartupLab<\/a>, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses via live video chats, an expert content library and email lessons.<\/p>\n","protected":false},"excerpt":{"rendered":" A good team of investors can be the foundation of your startup\u2019s success, but a bad one can obliterate even the strongest ideas. Investors can provide your business with more than capital \u2014 they can become resources for organizing, marketing, and realizing ideas. Knowing what to look for in an investor and being able to […]<\/p>\n","protected":false},"author":884,"featured_media":2722,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[43902],"tags":[],"class_list":["post-5510","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-professional-development"],"acf":[],"yoast_head":"\nSealing the deal<\/h3>\n
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Finding the right investors<\/h3>\n