Rarely does a businessman have all the capital they need to lift their startup off the ground. They need help which can be provided by family, friends or well-wishers. Still, this may not be enough, depending on the type of business one is starting. If you require an office space, need to recruit employees, buy machinery and all that, you will need to have enough capital. One way startups have manged to lift off the ground and be successful is through investors. Investors are not easy to come by. They are also not easy to convince to take risks with you. So as a businessman wondering how to secure investors for your startup, here are some worthwhile points to consider:

1. Do not directly approach potential investors

Now, this may or may not work but high chances are that it will not. It is better to be introduced by someone who already has a relationship with the investor, whether business or personal, as this gives you a better chance of being taken seriously and being listened to. There are people who frown upon overconfidence, it is not always a positive trait.

While selecting potential investors, consider someone you have worked with previously as they are aware of your potential and the skills you possess. If you are being introduced, it would be best to be introduced by someone you have worked with before, someone who can put in a good word for you.

2. Be prepared

A commonly made mistake while meeting potential investors is not being prepared for the questions they may ask you. Here are some inappropriate ways of responding you should avoid when being questioned.

• Q. Why do you want to venture into this sector? A. My friend tried it and is very successful.
• Q. What is your plan in case you do not get funding? A. I’ll think of a cheaper idea.
• Q. Do you have a team? A. Not yet but I’m working on it.
• Q. How are we going to benefit from this? A. You will, just trust me.

These kind of responses will kill any chance you had of securing an investor.

3. Be transparent

Transparency refers to openness. Potential investors should be able to see what activities are being carried out, by whom and where. If they ask to see your budget, you should be able to provide it without any excuses. If they ask to visit the site where the business is set up, you should be able to take them to the location. Questions asked, especially about money, should be answered without hesitation as hesitating creates doubt. The moment an investor doubts your intentions, you will lose them.

4. Do not approach potential investors empty handed

Have some capital of your own. You must show that you have done your best and honestly need further assistance.