Starting up your business can be considered the hardest moment in entrepreneurship. This is when you as the idea bearer have to fully commit to your dream. This commitment and trust in your product will attract external investors in wanting a piece of your cake.
Here are some of the reason why investing on yourself in good for business.
Which person whether ordinary entrepreneur or just an investor entrepreneur would be interested in something that has no backbone?
When you invest in your business, you give it backbone and stability and this means that if you trust it that must that you will put in your last cent into it other can also contribute something. One of the top South African investor Polo Leteka once said “If you have done research and you have sacrificed nights and weekends and you have put in your money… and developed some form of a gadget just to try and show me what this thing will look like one day even though you haven’t sold a single item, I have a lot of respect for that because it says to me that you take yourself seriously and you take me seriously as an investor”. Investors do know want time wasters, they want entrepreneurs who do know need to be asked to do thing but will do them first because they know what is needed for the business to grow.
Don’t waste your time and my time.
Investors will dismiss you in a second if you come to them unprepared. These people are business people and their time is money conscious so wasting their time constitutes a lot. So do your research and go to them with tangible things, not statistics from some website.
If you want to show the statistics then show them but also show them your own tangible statistic. A good example is showing them the market response when you sold your product. You cant go to investors if you have not tested your product for market viability. Market viability is like the stamp that opens doors.
Numbers, Numbers, Numbers
Calculate the costs in producing your product and then calculate the amount you need from the investors and breakdown how the investors will make their money back and give a time frame. This time frame should not hinder growth or progression of the business.
When presenting your case to the investors break this down as clear as possible because this is the winning point.