Finance has
always been a problem for many businesses and startups. A large number of them
have folded up due to lack of funding. However, we hear in the news almost on a
daily basis that a Nigerian startup has won thousands of dollars from investors
and Venture Capitalists.
Show results first
It may be a bit difficult for a relatively
new startup to secure funding because it cannot show any business results. So,
before seeking investors, you should work on getting customers and results. Do
not manipulate the results because the investor will always
audit.
Enroll in a startup accelerator
Unlike in the past,
there are now so many startup labs in Nigeria. The pioneer is CCHub. There are
others. You can join these startup accelerators so that they can offer you
everything you need to run a successful business. They can also expose your
business to investors.
Have co-founder(s)
Your chances of
attracting funding or investors are higher if you have co-founders. They are
much more confident because all business decision is not invested in the hands
of one person or individual! So no matter what, look for two serious, talented,
committed and reliable business partners.
A clear path to making
money
Investors love their money and they will never allow anyone to
throw it away. Hence, one of the first question you will be asked is how to I
get a return on investment? If you cannot define or state that clearly, sorry
you will never get any investment.
Ask for advice
Seeking
advice from a potential investor is one of the creative and strategic ways to
attract them. Through this, you will build a relationship with them. As the
relationship grows, you can begin to let them know what you really need. Never
ambush or cold-call an investor. It usually comes off as
desperate!
Get an investor that is also a partner, not just a
check
Granted, you need the cash to boost your business. The is not
everything. The investor should also be able to offer something beyond money. It
is better. This is good because they can make corrections when you are going the
wrong way.
Try to market your business at networking
functions
Networking allows you to informally pitch your startup ideas
to potential business partners and investors. If your idea is clear and
unambiguous, you may find someone that is interested in working with you. So,
when you have a networking opportunity, arm yourself with all the information
you need to effectively sell you business.
