Difficult as it may seem, any individual would think twice before investing their hard earned money and into a new idea. What is an idea but a mere vision of your future company or product/service that you want eventually to see the light of the day? And to see your idea turning into a reality and tangible product or service, you do need funds.
Hence you need to scout for financiers and investors who can find strength and long-term benefit in your venture and trust you with his money. The next question will be how you would –
- Go about finding the right investors
- Convince him on your idea
- Be able to build the trust
So let’s look into few cases examples of how some entrepreneurs approached their primary financiers and got them onboard to fund their vision.
Case Example 1: Approaching your near and dear ones
For some entrepreneurs, the biggest supporters and perhaps initial investors would be people who surround you – Friends, Family/Relatives, and people in your business network. These people will have faith in you and most of them who understand businesses understand the importance of financing. These are the people who will listen to you, and you can share your idea even if it’s on paper. This option is much better than shooting in the dark and sending formal business plan ‘just hoping’ the right someone will pay attention.
Case Example 2: Your business network/clients
Relationships built during business interactions become stronger with time. Such business relationships ensure long-term trust and support. They would follow you across multiple organizations as clients. These are the ones who would become the real and long-term investors for your new venture. These quality relationships, built over a period, is what you cherish. Nothing is more worthy than your business network, not your business plan, not your idea, not even your product. Sometimes, lack of this strong network can be the cause of the failure because you never have anyone to stand by you or vouch for you.
Case Example 3: Real investor is found in the most unlikely places
One of the businessmen shared his rather odd experience about how he found an investor for his startup. As believable as it may sound, he met his investor at his child’s day care center. He apparently just started chit-chatting with another dad who was there to pick his kid and the conversation ended in a meeting with him and two of his friends for funding. After a grilling meeting about his sales forecast and budgets etc., the businessman pocketed a $500,000 fund for this venture.
Case Example 4: Be the bait to Investors who are keen on investing
You will find plenty of investors keen on investing in a new idea or startup. Be fully ready with your proposal with a long view of the turnaround. Leveraging your credentials and experience can tip the pitch in your favor. One of the businessmen used the expertise of a startup owner to polish up his proposal and approach a keen investor.
Yes, you can convince people to invest time and money in a mere vision, something that still is on paper. The combination of your passion, vision for the business, and the knowledge you bring to the table can turn things around in your favor. You will have investors running after you in no time.