Tips for New Entrepreneurs

Online startups are popular business ventures because they may not require the large investment of a traditional business. Since many ideas for online startups are from people who are mostly unknown to the business or online world, acquiring funding can be difficult. When you are serious about your goals, there are ways to increase the chances of finding investors to help make your dream a reality.

Have Clear Objectives

When you need people beyond your friends or family to assist you in launching a startup, you must be more detailed about your plans. Instead of simply stating your goals and hoping people will help, outline a traditional business plan to help any prospective investors have clear insight into your goals and the steps you will take to reach them. The more tangible your plan is, the more people will take your goals seriously.

If you want people to invest money into your endeavors, you should find ways to build trust with your investors. Consider asking for a specific amount of money at each stage in your investor business plan, instead of all at once. The primary concern for investors is losing their money, either because the startup fails or you are deceiving them, but if you create a way for them to invest in your business incrementally, they may feel like they are taking fewer risks.

Limit Asking For Money

Although you need monetary investments, your startup can likely benefit from other investments. It can be easier to find people that are willing to invest their time or resources than their money. For example, part of your startup may be to launch an app. Ask if someone is willing to donate their time to develop the app. If you do not place serious time constraints on app development and are willing to partner with an entry-level developer, you might find someone who believes in your goals enough to spend some of their free time working on your app.

You can also ask investors for supplies instead of their time or skills. If your passion project involves video, consider directly asking for someone to donate a DSLR camera. Since people can be skeptical when they see a startup asking for money, they may be more inclined to help if you place more emphasis on the supplies you need.

Consider Crowdfunding Methods

Crowdfunding has been an instrumental resource for people who are launching a startup. When many people are willing to stand behind your goals, there is less risk to any single person. This makes people more willing to act as investors. There are different types of crowdfunding methods you should consider. If you already have an online presence, you may want to utilize crowdfunding methods where your followers pledge a small amount of money each month in exchange for an incentive. Without an established audience, conventional crowdfunding or peer lending might be a better option.

The idea of finding investors for a startup can seem impossible without business connections. With many resources available to help you reach likeminded people across the world, it is easier to find people who believe in your goals and want to help you reach them.