What do Investors look for before plowing their money into a Startup?

 If you are a startup owner, embarking on this journey can certainly be an expensive errand. Few entrepreneurs have the requisite cash in hand to help their businesses reach the highest state of efflorescence. For others, including you, the option of getting in touch with lenders is always there. You may also take the elite services of investors, which is why it is paramount to comprehend what exactly investors look for before investing in a prospect.

Albeit they hunt for one of the best startup companies to invest in, how they choose is something to understand. Fundamentally, there is a huge difference between a lender and an investor. While lender gives you money that needs to be repaid with interest, an investor gives you money in exchange for ownership of part of your business. 

Also, the most pivotal part: investors plow the money with the intent to make their money grow rather than achieve anything else. So, if you can persuade them that your business will make money, then you are almost 90% there. 

So, how to convince an investor and what do they look essentially for, let's find out!

● Show them the numbers

If your startup has been up and running for a while, it is imperative to show that your company has performed pretty well till now. You can prove things by showing facts and figures. 

Just in case, if you are yet to embark on the journey, you need to show what you can expect to bring in and how will you reach the goals. 

When your idea is impeccable and you are committed, no one can stop you from impressing the investor. 

● A superb business plan

Demonstrating a superb business plan is the imperative need of the hour which gives an impression to the investor that you are serious about accomplishing your goals. Most investors get intrigued by a rock-solid business plan.

● A unique idea

While there will be a plethora of so-called good startup companies to invest in, investors like to go with the ones having quirky and innovative ideas. This doesn't mean that you have to essentially come up with a brand new invention, but you need to manifest how your products or services are better than others. 

A strong narrative

Investors come across several startups daily. So, how do they choose someone compelling? The following example will surely help you to fathom.

Supposedly, an investor finds the concept of two companies interesting simultaneously. What makes the investor pick out one over the other? Yes, you guessed that right-it's the story with a strong narrative. When you divulge the deeper deets like why this business matters to you, where the idea originally originated from, where you intend to take it, and how will it change the world-when you have answers to these questions, this approach can surely lure the investor. Simply put: a strong narrative can certainly morph things in your favor. 

When, Why and How You Need Money

If investors are putting their hard-earned money into your startup it means they are expecting good returns. So, you should be ready with a plan that clearly exhibits when and why you need money along with what are your plans to utilize the same. Additionally, they surely want to know how much return they can expect from your venture; keep this vital aspect in your business plan. Not to mention, it is essential that you are ready with an exit strategy also. Simply put, if an investor wants to sell who will buy? Can they sell it to a third party? To add, if an investor is informed well in advance of the exit strategy i.e. how to get their money out they will surely be ready to put their money. 

The bottom line

When you are mindful of the above things, you won't have to endure barriers that will hinder your path from connecting you to an investor. 

And to make the journey of startups rather easy, Nainer is the reliable brand that gets you covered. Visit their website https://www.nainer.com/ to gain thorough knowledge.