Attracting Investors
As a newbie with limited experience, how do you convince potential investors you are worth listening to — and get them to buy into your idea? Here are two qualities I strongly believe are key with any investor:
Communication: In a time when people are constantly connected online, it’s essential to be good at correspondence in its simplest form. People hate being relegated to your voicemail, and unanswered emails make it appear that you don’t have time or don’t care about responding.
Our investors know they can call me anytime, and I’ll always pick up the phone or get back to them quickly. Respond to phone calls and voicemail messages and make time — not just to read, but also to thoughtfully answer emails every day.
Honesty: Being truthful is obviously non-negotiable. If you misrepresent yourself or your business, you’ll be dead in the water.
Sealing the Deal
Once you’ve established yourself as accessible and trustworthy, you will not have to go out of your way to land the investment. Take steps in advance to increase your chances of sealing the deal:
Prove it works. Once you’ve built a business successfully — even a small one — investors are more likely to believe in you. Get an idea going, and achieve small successes to show you’ve got the drive to see things through. As someone who’s been on both sides of the table, I personally feel more confident investing in ideas that have already proven viable.
Build relationships. Every person you meet is a potential investor or a contact who will lead you to one. This has proven true for me dozens of times. I met a guy at Starbucks SBUX +0.44% once who introduced me to a group that invested $250,000 in one of my ideas. We eventually sold that business for seven figures.
Be likable. It’s impossible to raise money if investors don’t like you. Engage people and be friendly. Look sharp and exude positivity. An investor once told me that he chose to invest in my company because I was personable. “I know we have a winner here because of you. I like you,” he said.
It’s natural to think seducing investors with best-case-scenario figures is the most effective way to get funding for a new project. Actually, the opposite is true. Nothing will torpedo an investor’s confidence in you faster than projecting everything through rose-colored lenses
Finding the Right Investors
Getting the right investors for your project is just as important as being able to attract investors. Here’s what I advise upcoming entrepreneurs look for in their investors:
Diversity: The more well-rounded your investment group is, the better suited they’ll be to address the challenges your company will face. Look for investors with diverse backgrounds and experiences.
Positivity: Supportive people can be the difference between a project’s success and failure. No company can grow without encountering problems. Finding people who remain confident through these times can improve your chances of success.
source : http://www.forbes.com/sites/theyec/2013 ... r-startup/