How to get investors to start a business . Imagine you have an idea with great potential multimillion sale. You can not believe how you found the next big thing. The only problem is that you need money (also called risk capital) to make your business take off. Well, here are some tips for investors .
Secure your IP. This means patenting your idea to make sure you are the sole owner of your idea. What will excite the investor is to know which are the only ones involved in this amazing idea. If another company can steal, the investors never see their money. Take the time to get the necessary patents.
Form a corporation for your business. Many people do not think in this way at first, but it is an imperative. When you’re operating a business, you want to keep those separate finance your family finances. It gives you legal recourse if someone decides to sue you (can only go against the company) and sets your business expenses as legitimate in the eyes of the government and the IRS. The rules for creating a corporation vary slightly within each state, but for a thousand dollars or less can be recognized as a corporation.
Create a list of people who could contribute to your company. They can be friends, family and even the guy who prepares your morning coffee. You should also be including “big fish”. For example, if you have an idea for a software product, you could try the research and development team of Apple or Microsoft. You have your patent to protect your intellectual property. (And if the big guys are interested, you just pay a good sum to give you a hand).
Develop an accurate presentation of your business. Includes what the product is, why there is a high demand, the cost to make this product and how the product cobrarás. And if you are well prepared, how you think promote the product. This is where you invest time and money to create a stunning package. It can be a DVD, or you can create charts or graphs. It should look like a high school report, but a business that is about to take off.
Contact the people on your list and ask them some time to sit down and introduce your idea. At the meeting, the most important thing is to trust in your business, this is the factor x. Someone can have the best idea in the world but if investors do not believe you can concretize, it is likely that the money stays in their pockets.
Offer them to investors shares. Remember that the money you’re asking for is not a gift but an investment. Therefore, these people need something in return. When you think your company, you will share. The amount varies depending on the type of company. The full stock exchange money for investment. This language should be handled by a corporate lawyer to leave no doubt on the way. Also remember not to give much of your company as you may need more investors in the future.
He works diligently to make your idea work. For the investors like to see progress. It makes them feel that going to to get a return on your money. Be sure to keep them informed of progress as your business go taking off. Then proudly pay them their share.