How to attract Potential Investors ?

Hello, 

Hope everyone is fine and doing well, After a long time last week spend some time at home as well as with friends, In the meeting of my friends, One of my friend said like this "you might need a huge investment to implement your business plan" I smiled and replied, Of-course we do need to find potential investors. 

This is how the article begins here:
Investors - basically these are the people who will become shareholders of the company if they contributed in Initial Capital - Let me ask you few Questions ?

>>  1Q- why most of the Entrepreneurs failed in finding out the Potential investors !!  Even they have unlimited sources ?

>> 2Q-Why entrepreneurs fails even they got Investors ?

>> 3Q-As you are an Entrepreneur what are the steps to take care before you go and approach  Investors or VC's (Venture Capitalists)

>> 4Q-What qualities Entrepreneurs should have in-order to give an intro of your business plan to a successful investor ?

 In Today's generation there is no scarcity of investors. Yes,  If your Idea is really having some worth in making huge money for investors then damn sure they will stand in Q, All you need to do is showing the real picture of your innovative idea in-front your trusted investors. Make them believe that it is the future and having a huge scope of rocket ship growth. It is all possible only when you show it with facts and figures. 

1A-Some Entrepreneurs just explain their idea and left the decision to the investors, Dear friends - remember one thing here, Until and unless you open your mouth and ask that-  "here where i stuck to expand my business further- I need your support to capture hidden potential market in this field, Today's service industry (what ever it is) is like this but tomorrow's service industry is going to be change with our business model. this is true." making this kind of positive impact as well as that you are capable to achieve it, is very much important in convincing the VC's or investors.

2A-Identifying the Potential investors is very crucial at the beginning stage itself because once investors are not investing the money back in the business then your capital may reduce and it will effect the growth of your company, so as an Entrepreneur should know pro's and con's in choosing the right investors. Once company plans to go for IPO (Initial public offering) then companies potential investor have the rights to sell the maximum shares. or decision power brings him to allow for acquisition by another company. this is where many number of entrepreneurs not able to succeed in expansion of their business with their own strategic innovations. 

3A-Before you really need a potential investor, Entrepreneurs should be clear with their business visions and future changes. Investors always looks your idea on long term basis whether this business is really having the flexibility in meeting the changes in Environment or can handle the diversified models coming up in same industry ! Entrepreneurs to be careful in estimating the changes according to the traditions and geographical locations and as well as from competitors. 

4A- Yes, It is not so easy to get an appointment from a Potential investor, before that you need to do a lot of homework on your business idea >you need to prove your self that you have achieved the results in previous projects or company. >How you ll make believe others that your really capable ? It is possible only when you achieve some thing in past or else you have worked earlier closely with Venture Capitalists (Professional Contacts) >Estimating Future trends and factors effects on existing business model. all these qualities creates an opportunity or chance to give an intro of your business plan in-front of potential investors.

Bringing number of investors in to the company always remains a challenging thing. Investors may see your academic background that your are from IIM or non IIM, these things also makes difference in taking the decision by investors. so, first any Entrepreneur from normal B-school should prove him/her self that they are capable, Either from a small start-up showing the results of first three years of revenue generation or taking the company from one level to another,developing professional contacts and working closely with top level management in previous jobs is help you a lot in giving suggestions or guiding your business by personal. 

--LaLi--