Consistent capital and steady cash flow are necessary to keep small businesses operating. Unfortunately, finding a fresh source of income to keep your business afloat or even launch a new startup is not an easy job. Still, there are ways to do so. One of the best ways, of course, is to find investors who are willing to support your idea. However, in times of recession, finding someone who is willing to support your company financially can be rather difficult. Therefore, entrepreneurs will have to be more creative than ever. Now, let’s take a look at what are the best channels for attracting investors for your business, and how you can use them to raise capital for your company.
There are many good channels for attracting investors for your business
Finding an external source of income for your business, whether you are trying to turn your passion into a business, finance your needs during the company’s early days, or scale up, is not easy. There are, however, several different tactics you can try. Still, finding an investor that is willing to participate in your idea remains one of the most effective and easiest ways to help your business’s needs. To help you with your search, we have prepared the list of best channels for attracting financiers for your business. Take a look, consider your options, and choose the approach you think is the most suitable for you.
Make sure that your company looks prosperous
Before you start searching for investors keep one important thing in mind. Make sure that bad management isn’t causing your current financial state and preventing your growth, and that you are managing your business’s finance properly. This primarily means cutting unnecessary expenses. If you are renting expensive offices, for example, professionals can help you move to a new space without wasting time. On the other hand, maybe the number of your employees is currently unsustainable. If that is the case, consider implementing pay cuts or reducing staff.
Of course, those are the most obvious and effective ways to cut your expenses significantly. There are many more available options, though, and you should think about them all. In the end, your goal is to consolidate your business to be able to show potential financiers that you are able to run it properly and that they will not be wasting money by investing in your company. If you think you are ready to start searching for investors for your business, the first places to look are online fundraising platforms.
Internet fundraising platforms are good places to start your search
In recent years, a great number of Internet fundraising platforms have appeared. As they are becoming more sophisticated and efficient, their popularity raises. More and more accredited investors, banks, and funds are using those platforms to find ways to deploy their capital, so that should be the first place to look.
You can try websites like Kickstarter or Indiegogo if you are looking for simple donations. This is a popular approach as it lets business-owners raise money quickly and reward their donors without suffering extra expenses or selling ownership stake. Still, it is not the best option for those that are looking to raise large amounts of funding.
If you are looking for equity crowdfunding platforms, on the other hand, the best places are AngelList, SeedInvest, StartEngine, CircleUp, and Wefunder. Equity crowdfunding has greater financial support potential. However, before you decide on this option, you need to determine whether you want to give a piece of your company to investors.
Participate in fundraising events
Participating in fundraising events is one of the easiest ways to find good financers, even if you have inexpensive business ideas. You can meet many potential investors in person in one day, lay out your ideas and concepts, or at least raise your company’s visibility. To be more efficient, try to schedule your meetings beforehand. For early-stage companies, events like WebSummit, Money20/20, TechCrunch Disrupt, SXSW, and Collision are good places to start. There are, however, other events that are not necessarily fundraising related, that you can also exploit, especially if you want to be ahead of the competition. Sporting events, charity events, film festivals, and other places that potential investors like to visit.
Today, the best channels to attract investors for your business are online
Back to the virtual world. Social networks are one of the best and cost-effective places to find investors for your business. LinkedIn, Twitter, Facebook are all great platforms for this, and you can take various approaches to get to your goal, from paid advertising to direct contact and partnership with influencers. The good thing here is that you can create your presentation for free, so make sure that your profile looks perfect before you start hunting for investors. If you are looking for venture capitals, on the other hand, use Crunchbase. Here you can browse and find investors that are active in your industry.
Get to potential investors through e-mail
A cold e-mail pitch can also be a way to get to investors. If you will be doing the writing, this approach can also be completely cost-free. Still, it is not so simple to make someone believe that you are the best investment of 2020. And it usually takes more than one e-mail to get the attention you seek. Because it is delicate work, this is not something that should be done by amateurs. So if you are not completely sure how to do it, consider hiring professional help.
Blogging might be one of the best channels for attracting investors for your business
Another cost-effective and underestimated approach is blogging. Yes, you can raise your visibility significantly by running a successful blog, but it is a slow process that takes time to develop. So if you are in a hurry, you can publish your posts via LinkedIn or Medium. Of course, if you want to engage potential investors this way, your posts need to be top-notch to assure your financiers that they are investing in innovation. Consider hiring a professional writer for this.
Do not give up. Your goal might be just around the corner
Those are some of the best channels for attracting investors for your business. They are easy to utilize and should allow you to get to your goal relatively quickly, if you play your cards right. The important thing is not to give up and to keep trying even if it looks unachievable. Remember that your solution might be just one e-mail away.