Successful Startups Stick to a Strategy: The 5-Step Process to Landing a Seed Investment

Successful Startups Stick to a Strategy: The 5-Step Process to Landing a Seed Investment

Owning your own company is a dream many people have. They long for the days of setting their own hours, taking over complete control of their work product, and other advantages. It may seem that having your own startup is nothing more than a pipe dream, but every company had to start somewhere. 

Building a successful company from the ground up isn’t easy. It takes determination, hard work, and money. Most business owners pay some expenses out of their own pocket, then find the rest of the money through seed investment.

What do new business owners need to know about seed investments? 

Seed Money is Essential to Getting Your Startup Off the Ground

Money doesn’t grow on trees, unfortunately. When you start a new business, it likely won’t make any revenue for years. Without an incoming stream of revenue, it can be difficult to expand or even hire essential staff. That’s where seed money comes in. 

Startups often prosper because an investor funneled money into the business to get it off and running. Your business has monetary needs that you may not be able to afford at first, including office space, staff, etc. Finding the right investor can keep your startup afloat until it starts making revenue. 

The idea of starting your own company can be intimidating. After all, only 10% of startups become successful businesses. But fundraising a good amount of seed money will give your company a fighting chance.

5 Must-Dos Before Landing a Seed Investment

Fundraising for seed money doesn’t have to be awkward. With this 5-step process, you can land an investor to help make your dream of owning your own business a reality:

1. Build connections in your industry. One great way to build connections in your niche is by finding a mentor to teach you the ins and outs of the business, including seed fundraising. 

2. Make a list of potential investors. Once you have connections, you are better equipped for finding the right investors. Making a list of possibilities can help weed out the strongest contenders. 

3. Use internet platforms to find investors. If you can’t find real-life connections, turning to the internet is the next best thing. Joining chat rooms, or social media groups, is an underused way to find seed investments. 

4. Have a strong business plan. Your potential investors are going to want to know specifics about your business idea. Having a strong business plan can help convince an investor to take a risk on your startup. 

5. Consider crowdfunding. Crowdfunding is many people investing small amounts of money each. The internet is a great place to find a possible investor. Sites such as AngelList and Kickstarter are go-to sites for crowdfunding.

Some people look to their close friends and family for investment money. However, others prefer to keep their business separate from their personal life. For those people, finding seed investments is essential for success. 

Following these five steps to seed fundraising can help keep you from becoming a statistic. 

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