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3 Tips on How Startups Can Get Investors For Their Business

While only a number of startups are lucky enough to fund their business on their own it is often clients who have helped them along the way. However, for most businesses, having investors are vital to keeping them off the ground and grow towards expansion. In this guide, we will discuss useful tips to build your strategy can find quality investors.

Here are 3 tips on how startups can get investors for their business.

Find the Right Investors


The first move is to take a closer look at your contacts. Who do you know and how would they be able to help turn your business idea into reality? Consider a new type of networking known as “spider webbing.” This is where you can pitch business ideas to other entrepreneurs, investors, and other connections. You have to pitch to as many people as possible and prepare to deal with rejection during the early stage.

Consider Potential Investor as Part of the Team


Think of your investor as someone you would like to include in your team. Consider their knowledge, insights, and experience to help include them in your strategic plan. Listen to your investors to help avoid any pitfalls that may damage the business.

Ideally, you will want a mix of investors that can boost you’re your confidence and provide support while still able to challenge you to push further. Look for investors of different ages, genders, and races. This will encourage a diverse target market and allow your investors to reflect on the audience of the company.

Determine Factors


There are 3 factors that go into choosing your investor. Consider the connection – can you talk openly and deal with a crisis? Function – does the investor have the proper background to help guide you? Focus – is the investor ready to make the investment to oversee how the company is progressing? Don’t be afraid to see what your investor can bring to the table.

Conclusion

Gain advice from people you trust and have the proper knowledge in negotiating your investment terms. Whether it is a lawyer, entrepreneur and other professional, allow your business to be flexible.

Top 4 Legal Mistakes Startups Make

Launching your own business is a brave decision that may change your life. However, the odds may be against you if you do not have the right foundation on how to help your business grow. In fact, generating revenue is a priority that is often a rare commodity. In this guide, we will discuss some of the most common mistakes business make and how to prevent your brand from making them.

Here are the top 4 legal mistakes start-ups make.

Being Incentive

Most entrepreneurs want to be able to handle their business all on their own. However, it is extremely rare to capitalize on a business idea without the aid of other influencers. Building core team members are considered as a major investment as they are just as motivated as their founder. As the business continues to grow, founders who exclude their shares of the profit will ultimately force core team members to leave and use their knowledge to compete against you.

Intellectual Property

Most common IP rights are trademarks, copyright, patents, and basically everything that comes from the owner. It is these rights that will work for owners to protect their business name. By misunderstanding IP, the value of your business will fail. That is one of the most dangerous things you can do for your business.

Patents

Having a patent means you must claim a legal right to territory. Most businesses choose to keep their formula and launch in market share. Consider the information you disclose and with whom. This is especially important during the early stage as the idea is to disclose the idea without giving away its value.

NDA

With a product idea or business model, you might take extra precautions. It is important to limit the number of patients you discuss your business with as Non-Disclosure Agreements will take effect is the confidentiality is breached. Be sure cautious with potential partners

Have you or someone you know undergone some of these legal mistakes? What advice can you offer? Comment below and let us know!

5 lessons Self-Funded Startups Can Teach Businesses

Self-funded businesses have the power to grow beyond the idea of selling the company. With many successful companies, it is important to stay prepared for the long run rather than investing on short-term. In this guide, we will discuss useful lessons that many self-funded start-ups used for success and what other businesses can learn from them.

Here are 5 lessons self-funded startups can teach businesses.

Constrain Finances

While businesses often feel the need to spend their finances, spending more than you should often lead you with no financial statement to fall back on. Self-funded start-ups and business must focus on delivering value to the custom, drive revenue, and create growth before expecting to make a profit of their own. This means businesses must expect time for product testing hours on R&B and collaborate with partners on new platforms.

Take Advantage of Creative Resources

Businesses are driven by necessity. That is why it is important to spend on necessary items that will shape innovation when it comes to the core functions of the business such as recruitment and marketing. Instead of spending money on recruiters, invest time and money in sponsoring events, community projects, and panels. This is a strong way to build employer brand both authentically and organically.

Build a New Business Model

It is important to find a point of difference in how you build the best team with the right source of people. To gain the most affordable team with the best expertise, consider hiring through outsources. Clients will need engineers to deliver quality, but don’t be afraid to work with a team that is located all over the world. Not only will you benefit from outside talent, you can gain help in a competitive market.

Embrace Technology

As a fast growing industry, this leaves the business with hours of manual entry, paperwork, and energy. Take advantage of today’s workflow technology using tools to help improve the quality of the company and interactions with customers.

Conclusion

With focus consistency and investment, businesses can improve their brand through trust, leadership, and reputation and take their business to the next level of growth.

Infographic by: online.nec.edu