How to Raise Capital For Your Business Idea in Three Easy Steps
This articles explores how to raise capital for your business idea in 3 easy steps. Essentially raising capital from private investors is a simple exercise and after reading this article you will understand why it is so easy. Developing a strategy is the key to this industry and the act of securing capital from investors is an industry in its own right…as you will see…
If you will put yourself in the shoes of investors you will get a better insight into what they need to know to say YES to your project. If you do that you will see a few things. First, you will notice that they are a little bored and mostly ambitious to find a better annual return than the single digits of the typical stock market return or a simple term bank deposit. The may only be willing to invest 5% of their total portfolio in propositions like yours because they recognize the higher risk, but hey, 5% of $10 million dollars is still $500,000 so I am sure there will be plenty of seed capital there for you to get your project off the ground.
You will also notice as you wear these private investors shoes, that you have been very prudent and careful with your money to accumulate so much of it and it has taken a long time. If an investor senses in any way some sort of flippancy or wavering on your part, they will NOT go ahead with you even if everything else was perfect and you fitted just right. If there is something off about you or your team or your presentation in terms of confidence, you will definitely not get a yes. You may get asked for more information, but waivering confidence is a big red flag for investors.
So here are the three easy steps.
1) Create the feasibility study and produce it in a professional pamphlet. Essentially make sure to include supporting statistics from credible sources about your potential market.
2) Get a legal instrument called a non disclosure agreement. This document can be purchased ready made at most lawyers offices. Get everyone that is exposed to your confidential data to sign it. It covers your interests and protects you from copying or loose lips.
3) Contact as many lawyers as you can find listed and ask them about finding you private investors. Most lawyers and accounting firms for that matter have many clients on their books and many typically express an interest in funding venture capital for new start ups.
Author: Terry Hart
Article Source: EzineArticles.com
Provided by: Canada duty tariff
