A study shows about 90% of business ideas or startups fail and one of the main reasons is not finding the proper investor. So when you have an innovative business idea for your startup with a proper business plan and you know how much funding assistance you need then it’s time you start looking for investors.
There are many ways you can attract the eyes of a business investor. You have to meet hundreds of investors before you find the right financier to raise money for your startup. You have to make sure you have a unique idea, proper business, and marketing plan to show the investors. It will create a positive impact on the investor’s mind about your business idea.
Jump To A Section
- 1 10 Ways To Find Investors For Your Business Idea
- 2 Do Researches And Compile A-List
- 3 Through The Industry Mentors
- 4 Look Out The Networks
- 5 Apply To Accelerator Programs
- 6 Your City’s Entrepreneurial Community
- 7 Crowdfunding Platforms
- 8 Provide An Overview Of Return On Investment (ROI)
- 9 Angel Investor Networks
- 10 Start-Up Launch Platforms
- 11 Friends And Family
- 12 What Are Some Best Innovative Business Ideas?
- 13 How To Design An Innovative Business Plan
- 14 Final Thoughts
10 Ways To Find Investors For Your Business Idea
Choosing the right investors can make or break your startup or business idea. Moreover, finding the proper venture capitalist is not an easy task. But if your idea is solid and marketable then you can follow the below steps to find investors for your innovative business idea.
Do Researches And Compile A-List
The first thing you can do is, make a list of industry people according to your business idea and identify the investors that might align with your vision and goals. There will be thousands of venture capitalists across the country so what you need is to find 30 to 40 people who will give attention to your idea and capital investment that you’re looking for. So with this process, you will have the opportunity to talk with 40 to 50 investors and get their opinion to find the best recommendation. So, contact the investors of your network, share your ideas, listen to their feedback, and follow their advice when taking the next step of your business. You can gather information from the below sources:
1. Industry associations
3. Government statistics
4. D&B financial and business services
5. The local chamber of commerce
6. Business development agencies
7. Online business databases
Through The Industry Mentors
This is a great way of finding investors for a business idea. So if you don’t have any industry mentors then you should consider connecting with a few before you start looking for a venture capitalist. Mentors are very important because they have the ability to see through significant parts of your business idea with their years of experience. They will easily understand your concept, you as a founder, and be able to offer guidance to help you navigate your business plan. Usually, the mentors are successful entrepreneurs investment experts or leading influencers in your business industry. So they might be able to help you understand what the investors are looking for, and might introduce you to some financiers who could potentially be compatible with your vision.
Look Out The Networks
Networking is a great place for new entrepreneurs or innovative business ideas because most of the time networking allows you to pitch your startup in a less formal yet more organic way. According to Diana Goodwin of AquaMobile Swim School:
“If you’ve been building a great business, getting out and networking within the local startup and investing community can be a great way to meet investors. Most of my meetings with investors are developed by being out at an event and mentioning my business.”
Many people find this step very awkward because you are trying to sell your business idea that might put people off? However, not necessarily this is the scenario for every meeting you have with potential investors. According to many business experts, if you let things happen organically then they will yield you a greater result.
Apply To Accelerator Programs
Accelerator programs are another great source for finding investors. These types of programmers are usually offered by investment firms, seed funds, universities, and other established entities. So if you have a unique business idea and looking for investors then you can apply to incubators or accelerators to receive a number of benefits. You will have the chance to find a whole host of investor resources to boost your business idea and start your business. The main target of these investors is to take a bigger role to help turn your idea into a viable business model and provide initial funding to make it happen. So, from the accelerator programs, you will have the opportunity to get real-world guidance from industry mentors which will lead you to success.
Your City’s Entrepreneurial Community
If you are ready to take your business idea out of the garage then it is best to get involved with the other entrepreneurs around you. You can join the regional tech and startup groups on Facebook, Linkedin, and other platforms and attend the events whenever possible. You can also help to organize events and by doing so you will be able to meet a lot of new people and potentially the investors. You can ask for advice, share your business idea, hear their opinion, and talk about struggles in the life of an entrepreneur to get to know other founders and investors. Maintain continuous communication with the founders and investors to build a strong relationship so that you can work together to help each other’s companies across the finish line.
Crowdfunding platforms are a great place to look for seed funds for your business idea. There are lots of trusted and targeted platforms available for industries like arts, science, business, startups, equity investments, loans, and venture networks. Crowdfunding platforms will provide you with access to many different types of investors that include the general public, philanthropists, accredited investors, etc. usually, each crowd finding site has its own focus and way of incentivizing investors, so you have to study the platforms and identify which one most closely aligns with your strategic goals and vision.
Provide An Overview Of Return On Investment (ROI)
Investors will only be interested in your business plan when you will be able to show them how much profit your business idea can generate. Every investor wants to make money from their investment so it is very important to highlight what they will personally gain from investing in your business. Nick Braun of PetInsuranceQuotes.com said:
“Whether you’re pitching an angel, VC, or your rich uncle, it’s imperative to show how you’re going to get them a return. It’s tempting to focus on yourself and your business model, but ultimately, investors want to know what’s in it for them. The best way to stand out and get interested is to clearly illustrate how and when you will get them a return.”
Angel Investor Networks
These types of networks are member-based networks and they provide location-based service. This type of network usually operates from a fund that has been set aside by an investment firm to support local business founders. This type of network will not only invest in your business idea but also offer you mentorship, solid advice, and provide access to their network of contacts. So you will have the chance to get offers from up to a hundred investors for one venture! Some renowned angel networks are Funded.com, Angel Capital Association, and Angel Investment Network. The City Chamber of Commerce groups of New York, Los Angeles, and Chicago have started to partner with angel investors to help the new entrepreneurs of those cities.
Start-Up Launch Platforms
There are many start-up launch programs available like startups.co which provides a convenient channel for locating investors in an efficient way. Usually, these types of platforms are launched by different companies to provide information, research, and assistance to help an entrepreneur launch his business. You can join Startups. co because it’s the largest start-up launch platform with 13.9 million members. Moreover, it also provides an extraordinary opportunity to find some investors for your business idea. You can also join Gust as it has already invested $1.8 billion in start-up businesses.
Friends And Family
Usually, most entrepreneurs get a lot of financial support from their friends and family member. This is because the friends and family members have faith in you and they are passionate about helping you succeed. So you can look for investors among your friends and family members and this type of investor is very easy to handle. Moreover, this type of investor won’t get involved in the day-to-day operations of your business; this is very important for a startup business because if the investor doesn’t interfere then you can easily continue with your plan. However, if you are taking financial aid from your friends and family member then make sure you keep the personal and professional relationships as separate as possible.
What Are Some Best Innovative Business Ideas?
Businesses everywhere are going all out in the quest to find new and innovative business ideas that will bring in more revenue. With AI assistance, businesses can now focus on what they are best at – creativity and emotions.
This is a list of innovative business ideas that are changing the way businesses operate in 2021.
There are many different ways to make money in small businesses, but these ideas are not just about money. They are about creating a new industry, bringing something new into the market, and being an innovator.
1) Decentralized Organizations: Organizations that work without a central authority – meaning no company can own them.
2) Blockchain Technology: A decentralized digital ledger used to record transactions between banks or other trusted parties using encryption techniques to ensure privacy.
3) AI Business Models: AI-powered businesses that use machine learning and predictive analytics to generate products and services for clients.
4) Marijuana Industry: In some states, marijuana is legal and regulated like any other industry with rules on production and sales.
5) Starting A Blog: One of the best ways to make a reliable income online is by starting a blog. You can take your expertise, passion for an industry or products, or even hobby and turn them into money-making opportunities. There are many different options when it comes to how to run your blog from topics, products, style & more. For this reason, choosing the correct undertaking can be challenging
6) Online Courses And Coaching About Your Target Industry: One way in which people can get more value out of their online courses and coaching is by taking on a mentorship role with the course or coach. Mentors are usually other industry members who have been in the business for a few years and can offer expertise.
In order to find mentors, there are platforms that help match students with mentors who are looking for students. One such platform is Course Matches, which allows students to find mentors as well as ranked lists of courses that they should take.
7) Starting An Ecommerce Business: When thinking about starting your own online business, it is important to decide on a niche. Once you have done this, research that niche and get as educated as possible about it. A good idea would be to start with one of these eCommerce platforms: Shopify, eBay, Shopify Plus or Woocommerce with WordPress.
8) Start A Podcast On Your Specialized Topic: You can start a podcast by recording and publishing audio in your preferred format. You can also start a podcast as an extension of your blog content.
Podcasting has become increasingly popular in the last few years and there are already many successful podcasts out there. The one thing that almost all successful podcasts have in common is that they are very personal and authentic.
9) Sell Custom Printed Products: One way to sell printed products is by generating leads directly from your website. This allows you to target customers who have shown interest in your company’s services and products. With this method, you can generate leads from social media posts, blog posts, or emails that are personalized for a specific customer.
The process of selling custom printed products is simple: first, select the type of product that you want to sell. Then use the design tool to create a digital file for printing on the product. In order to sell without running out of stock, a minimum number of orders must be placed within a certain period of time.
10) Graphic Design Business Innovation: One of the most pressing concerns for graphic designers is how to get new clients and increase business. However, some companies are turning to AI-powered content creation tools to generate original designs.
Companies like Adobe have released AI software that can design a logo, website or social media posts with different fonts and colors at scale. Other companies are now using AI writing assistants to generate content for their websites, social media accounts and blogs.
11) Starting A Web Development Business: If you are thinking about starting a web development business, there are some important questions to consider.
1. What is the niche of your business?
2. How will your business grow?
3. What will be the main functions of your team?
4. How much money will you earn per month?
12) Business Based On Instagram Influencer: Influencer marketing is a type of marketing that uses social media to promote a product or service. The process of the influencer marketing typically starts with the brand engaging an influencer, who then in turn promotes the product on their social media with hashtags and images.
Influence marketing is a well-known method for brands to engage with new customers and keep existing customers satisfied, while ensuring that they stay on budget. Unlike traditional advertising, it relies on word-of-mouth rather than paid ads.
How To Design An Innovative Business Plan
Most businesses fail because they don’t have a clear strategy from the beginning. They just start up and hope that their product or service will sell itself. This can sometimes work out if you’ve got something really unique and different, but most often it leads to failure due to lack of planning or ineffective execution of an existing plan. However, there are many benefits for having a well-designed marketing strategy which can help keep your content effective and engaging.
Steps for Designing and Executing Successful Business Plans:
1. Conduct market analysis to understand customer problems & existing competition
2. Define target audience, customer segments, and ideal buyer persona
3. Write SMART goals for better accountability and performance management
4. Analyze your tactics to come up with creative campaign ideas & strategies
5. Set your marketing campaign budget according to your business requirements
6. Create an image of the product or service you are offering or plans for the future.
I will be thrilled if the above information has helped you find an investor for your innovative business plan. If you are actually looking for funding then the investors, microloans, or crowdfunding will be best suited for you.
Magalie D. is a Diploma holder in Public Administration & Management from McGill University of Canada. She shares management tips here in MGTBlog when she has nothing to do and gets some free time after working in a multinational company at Toronto.