Taking money think of those who gives them
The most reliable method to succeed in investment attraction is to look at the business by eyes of the investor. Present that you have few millions of dollars and you should enclose them somewhere favorably. Present that a certain abstract businessman has brought to you on consideration your business plan. Abstract, look at it from outside and ask yourself a question: whether it is necessary to put up my money in this project? I am assured, you will find out many bottlenecks and questions on which you can’t find at once the answer. The investor wants, that to him have proved with figures and the facts that he cannot only return money, but also get profit. What main proofs which will move a scale in your advantage?
The proof of market orientation and correctly chosen focus.
Businessmen should show that they have found the present requirement of the potential buyer in the market rather than simply afflicted with innovative idea. The Business plan which gives more attention to the product description and technical explanations rather than explanation of the one to whom and as the goods will be sold usually doesn’t cause interest of investors. They quite legally assume that it is faster I than people searching for the finance rather than the business enterprise.
However for market orientation there is more to come. Financiers want to feel that the businessman knows that its enterprise can do better than others and knows how to use this possibility.
Example: Two girlfriends having created the enterprise have faced great difficulties on capital attraction. Both were fine designers of clothes but only when they have found the niche in the market – design and production of children’s clothes, the enterprise has started to develop better and there were financiers who have put up money.
The proof of perception of consumer product.
Financiers want to know that your goods or service can be sold, even if we speak about a pilot lot. However if you are on the initiation stage of development of idea, you should designate a problem which will solve your new goods and to show, why this problem is significant for consumers.
Example: the Inventor from Royal College of Arts has acted with revolutionary idea of flashing tank for a toilet bowl which under the form was very thin that liberated additional space in a bathroom that undoubtedly was favorable. Besides, it saved to 30 % of water at washout that too was attractive to the consumer. That the market will apprehend the goods was indisputable.
The businessman also should show that he knows, as well as to whom their goods will be sold and that consumers have sufficient means to purchase these goods.
It is very crucial that government, despite this crisis is not abandoning to help small businesses. And small business grants can be a real helper right now.
But, surely, you should understand that today the fight for small business grants as well as for other types of grants is harsher. This is natural – more businesses need them. So before you start your fight for the small business grants, please check out this blog for more info about grant industry.