How would you get investors on board?
If you have a new venture (only 3 months old) in helping kids, how would you suggest going about seeking investments and sponsorship, when there's no start-up capital?
Several options, find an accelerator or incubator program and apply. This will give you credible feedback as to the validity of your business plan or approach. Talk to high net worth people and test your idea. Have a standard powerpoint deck prepared answering all the standard questions, you must make this look like a business. If it is a lifestyle business (not VC compatible) then you go the SBA route, if it is a moderate size business, look to friends and family and put together an offering, if VC look for similar investments in that field, find out who made them, and reach out to that partner for a read on your plan. Hope this helps.
First of all, successfully having investors on board means that you manage to convince them you are the right person or team to invest in. Having said that,you certainly have to look for ONGs, local mayor's office or regional Government support and private schools located at the same region. After that, try national Government, any foundations working with education and if anything fail, international individuals or companies that have been supporting education issues all over the world.
Your best investors are your customers, i.e. revenue is your best source of cash. Not only is it non-dilutive, but customer traction is essential if you want to interest investors. For actual investor engagement you will need to have all the pieces of a "real" business in place--team, plan, deck, due diligence packet, offering materials. I strongly recommend you find someone experienced to help you. Look to local angel investor groups and serial entrepreneurs for guidance. Search LinkedIn for startup consultants in your area. And when you approach investors, ask for advice, not money. If they like you and think you are coachable you may get checks too. Most investors follow a process, and that includes getting to know you over the course of many interactions and seeing that you make progress against your stated milestones and timelines.
By doing a fundraiser so that you can get some capital, however you have to understand there are a lot of people out there claiming they want to help kids. Is you business for profit or not for profit? Investors are going to take a long hard look at that one fact because most businesses that help kids are not for profit. I only know one business that is strictly geared towards empowering teens that is for profit.
Consider making a pitch on my radio show. Details at www.angelpitches.com.
#1. You need a solid business plan / model. If you're for profit, like you state, you can bet your arse that your investors will be too - effectively eliminating the beloved non-profit tax write off angel capital.
#2. You need a profound A, B, C or preferably a combination...
A. Product / Service B. Team C. Niche uncovered
#3. Research and reach out. Find the "series A" funders in your state or region, leverage your professional network, find the early stage business development resources in your state, build a team if you haven't yet, attend start-up events, post ads online, and always be bootstrapping while you continue to hunt for investors. This is one of the biggest reasons that start-ups fail in my opinion. You can run out of operational funds if you focus all of your time on raising funds from angels / vc firms rather than continuing to build the business sales. Manage your time and capital wisely without putting your eggs in one basket of potential financiers. Good luck to you.
Since its only three months old your only way to get capital is only by convincing friends & relatives , you have to explain to them the whole procedure of your business , sharing with them , there are many investors who wish to invest their money , but its up to you to show them the work & the expected return , If its worth they will participate your business .
show Investors a ready to market viable product or service or solution and they will Invest
That is what they look for!!!
In a situations like this, I have always find the relevant middle mans to help on this. Middle Mans are the people who has the right network connections for your venture in order to get investment and sponsorship.
Considering your venture related to the kids, you should be able to find such a people in Voluntary organisations or government bodies. Once you find the right person with good contacts then you can explain your future plans and draft a simple investment plan for the funders.
You can also get help from Chamber of Commerce in your area to find investors or funders for your organisation.
The best way to get investors on board is to first provide full details of what the investment is. Great packaging is advisable and do not fail to detail the whole risks involved in any investment. Investors hate when any detail is hidden. then to get investors when you are ready with the above, clearly state and emphasis what the investor will get as a minimum. Your emphasis on what they will gain is always the most important. Many investors and partners in any business will support or invest if they are sure of what they will get or gain instead of helping you out of pity or sympathy. Most businesses seeking investor always forget to home the compulsory home work of detailing the whole investment and starting categorically what an investor will gain. Many are lured into business because of what they will gain and not necessarily keeping their funds invested.
Investors, in the words of Will Rogers are interested in: "It's not the return on my money that worries me the most...it's the return OF my money."
You may have the most wonderful idea in the world, but if you want to attract investment you must concentrate on how your idea, activities, company will generate revenue that can secure the investors investment.
Keep in mind that what your doing, in looking for investors, is SELLING your self and your ideas. Sales is a numbers game. You must be ready to talk to lots and lots and lots of people. Many of them will not like either you or your idea. Most of them will not be nice about telling you what they don't like if they respond at all. It doesn't matter...keep going...hone your pitch, practice on real people, never give up...eventually you'll find the right person or group.
Send me a note and I'll send you a copy of the "Validating Your Vision" worksheet. It will be a significant help in developing your understanding of what an investors needs to know and hear from you to become comfortable investing in your "vision".
Kickstarter and the like have become great options to get initial funding. If you have a good business model, you will gain support. Once you show that you have a great deal of support from Kickstarter fans, it can help you acquire bigger capital funding down the road.
You can start by making a brochure with a company profile. As an entrepreneur, you have to have a success line in that field, and sponsorships and investments follow on good credentials.
Without any money there isn't much you can do. You should have developed a break-even analysis to determine how much money you have to generate for one year just to break-even. With that analysis you need to put together a business plan so that an investor can understand what your plan is and make a determination as to whether or not they feel that (1) you have a viable value proposition and (2) when they might expect a return on their investment?
With no startup capital, it is difficult. Having said that, if you have spent time on creating an offering, that is your investment. Investors are risk averse and they want scale. Must create a proof of concept and project scalability.
If you need capital for the very first pilot project, you may have to present the big picture for second stage funding but for the pilot you may want to address their risk by guarantee of capital protection with some minimum acceptable return. This needs some evaluation of a minimum return from the pilot in the worst scenario.
be differ build your quality control quality over quality
this will attract more investors to your venture