Having a great idea for a new company is only the start of a new business success. You must develop a strategic plan developed specifically for your product, location and industry. Once you have the plan, you must find enough funding to appropriately get the company launched. If you don't personally have the assets to back your new venture, you will need to ask for investment funds from relations or professional venture capitalists.
Write a business plan that explains what the company does, how much money is needed and what the money will be used for. Include projected returns explaining how investors will get money back from the investment. Visit the Small Business Administration (SBA) website for templates on how to write an effective business plan.
Make a list of prospects to ask for investment funds. Start with close family and friends who can afford to make an investment. Expand this list to former bosses, colleagues or associates. If no one in your immediate network is capable of the type of investment your new venture requires, start compiling venture capital investor prospects through SBA resources, Chamber of Commerce functions and online searches for venture capitalists and angel investors.
Call potential investors with a quick, professional phone call to determine if there is any interest in investing in your project. State who you are, your company and explain very quickly that you want to set up a meeting to discuss your new venture.
Meet with the potential investor. Dress professionally and have a copy of your business plan with you. Succinctly explain to the investor what your company does, what the investment requirements are and how an investor will make money.
Answer any questions the potential investor has honestly. If you don't have the answer, don't try to make one up. Saying you need to look into something is a legitimate and honest answer. Investors respect honesty and a willingness to get the answer rather than someone trying to slide a fast one past them.
Give the investor a business plan at the end of the meeting. Thank him for his time and tell him you will follow up in a week after he has a chance to review the material.
Call the investor after a week to follow up and answer any questions that may have arisen from reviewing the plan. Set up another meeting if the investor is still interested in the project to discuss how much he can invest.
Never be pushy with a potential investors. Venture capitalists often specialize in sectors and industries they are most comfortable and knowledgeable in. Finding the right fit with investor and company profiles requires time and energy in research and networking. Don't take rejections personally.
- Never be pushy with a potential investors. Venture capitalists often specialize in sectors and industries they are most comfortable and knowledgeable in. Finding the right fit with investor and company profiles requires time and energy in research and networking. Don't take rejections personally.
With more than 15 years of professional writing experience, Kimberlee finds it fun to take technical mumbo-jumbo and make it fun! Her first career was in financial services and insurance.