Today I heard from an old friend asking how to find Venture Capital investors for a startup company. SILENCE from my end. There isn’t a question I get asked MORE than the million (literally) dollar one….HOW DO I FUND THIS GREAT IDEA???
Sadly, the financial institutions America was built on have closed their doors to small businesses forcing inventors and entrepreneurs to get creative in the way they build their businesses. I have personally invested over 40k in my invention and am inches away from a first run of manufacturing. THIS is called BOOTSTRAPPING your business. If you have never heard the term “bootstrapping” you haven’t pitched to investors yet. ALL investors want to know that before THEY invest in your idea and YOU, that you have sacrificed something to get it started. Investors HATE risk and love sure things, yet, many of them started their businesses with sweat, blood and tears and respect other business owners who have done the same.
Equal to an idea is the person who stands behind it. Investors are going to look at YOU perhaps in some ways MORE than the product you may be selling. Are you passionate? Do you articulate the idea well? Can you sell it? Are you in tune with the finances behind it? Have YOU sacrificed to get it going?
check out this book about Bootstrapping business: Click Here!
I chat with a LOT of women/men trying to start businesses that could change their lives. What I can tell you is that the NUMBER 1 hurdle is MONEY. If you plan to head out to find an investor for your business, you had better have a business plan (I will blog later about how to build one of those) and a solid financial strategy. Asking an investor to simply LOVE you and your idea without giving them the reasons it will be financially beneficial to them, is like going to the store and expecting to walk out with a cart full of groceries without having to pay for them. It isn’t going to happen. Being prepared and having a plan is integral for startup business and just as you wouldn’t bet on a horse at the track who had never run a race before, an investor won’t look your way if he doesn’t believe you have invested in your business, YOURSELF.