Many of the desirable and undesirable actions associated with startups involve trying to drum up funding for your new enterprise. That being the case, there are some definite strategies and approaches you should cultivate, just as there are some you should discard without ever putting them into practice. Below, we’ll discuss some of the most prominent do’s and don’ts associated with small business startups.
Things you should do
Make sure that you do follow the recommendations listed below, to make a better impression on investors:
- educate potential investors – provide all relevant information, so investors can make an informed decision
- be trustworthy – any relationship you form with an investor could turn out to be a long-term one, so be trustworthy and earn that long-term relationship
- be willing to invest effort – nothing worthwhile ever comes easy, so make sure you’re ready to sacrifice time and effort for success
- cultivate networking – forging business relationships can be priceless, so start networking right from the outset.
Things you shouldn’t do
Here are some of the practices you should really try and avoid when appealing to potential investors:
- too much back-story – don’t overwhelm investors with your complete history – they’ll be much more interested in what your future plans are
- don’t try for perfection – it’s not necessary to explain every detail; it’s more important to emphasize the points of importance
- don’t have a failed demo – your demo will be absolutely critical to investors; if it fails, your entire pitch is down the drain
- don’t over-sell – investors have heard all the adjectives before about how great a business might be. Convince them with facts and stay conservative with your pitch rather than going overboard.
Need funding for your startup?
If you’re a new business person starting out, and you need funding for your startup, you should contact us at Array Financial. Our specialists can work with you, and review some possibilities that may provide the funding you need to get your enterprise off the ground.