How To Get People To Invest In Your Company

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Most small businesses fail within the first five years. This fact can be a little discouraging for new business owners. Aligning yourself appropriately in a place in the market with a market-driven idea is the primary step to enhancing your chances of achieving a successful result.

Assembling a good team of players and attracting capital is next.

Ponder the following questions while you're searching for startup funding and capital. You'll need to know the answers to all of the following questions as you request money from investors.

1. What need in the market does your company fill?

2. What product or service do you offer and how does it fill the need?

3. How much money is spent in the market you're thinking of entering?

4. How does your business bring in wealth?

5. How much money is your company going to make in relation to the rest of the market?

6. What will you do to draw in customers?

7. What will your marketing budget look like?

8. Who is the management team?

9. Why is your management team good enough to properly manage your business?

10. What competition do you have?

11. How much income is your competition bringing in?

12. How are you different than your competition?

13. What is your plan for striking the competition?

14. How much cash are you planning on raising?

15. How are you going to use the capital?

16. When is the exit?

17. How much do the investors get?

As you endeavor to put together a reply for each of these 17 questions, you will find that it can be very difficult. You'll soon discover where your shortcomings lie. Money mainly wants to know how it gets repaid and your duty as a business owner is to show how that will happen.

I now think back to the first time I tried out my new understanding about how to present a deal to a venture capital group. I had been mentored by a fabulous capital raiser. Using his method of illustrating how their money will make more money, I secured a $1 million subscription agreement in 5 minutes- though, it took one year of preparation and relationship building!


About the Author:
Rod Alan Richardson has dedicated his life to teaching people how to succeed in free enterprise through Management Training. He also offers a free Business Training Newsletter.



Article Originally Published On: http://www.articlesnatch.com


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