New company? Boost your credibility and trust!
As with any new company starting out, you will want to invest time and energy into building your credibility. When you start off, it's important to share what you know and who you are with anyone that might be interested in learning more about your business. One way to do this is by publishing a blog that continually shares updates on the progress of your company and its products or services. If potential investors are impressed with your blog posts, they will be more likely to invest in what is happening inside the company! To help show how well-researched these posts are, make sure to include citations from credible sources when posting opinions or making claims so readers can verify for themselves if they agree.
In addition to blog posts, include a splash page at your company's website that gives visitors a brief overview of who you are and what your company is working on. Include photos of the business owners, contact information such as mailing address and telephone number, as well as a mission statement for your company. In the event that someone is interested enough to ask for more information about your business, you can find it easily and quickly on your site! This will save a lot of time when talking to potential investors.
Make sure that you have created an email list through which your visitors can opt-in to subscribe to new posts on your blog or website updates. This will allow you to send out emails when new posts are posted or when there is an update on your company's social media channels.
One easy way to get potential investors involved in your company is by inviting them to be a part of the process as a Product Evaluation or Beta Tester. If they are interested in investing, it will create a sense of value for them because they have invested their time and expertise into helping you create something great. This will be especially helpful when it comes to finding financial support, such as a loan or grant.
Make sure to include everything you want to accomplish with your business when talking to potential investors. No one expects you to be able to do everything on your own, so make sure that you present an outline of what you hope your business will do in the future. This will help investors see what the benefit of investing in is for them and how their money will be used/committed.
Work with potential investors before investing in any company. By being able to talk with the people that will be investing in your company, you can learn about their expectations and how they will be able to help you reach your goals. This will help you determine the best investment for both parties involved.
Once you have reached a point where you and your investors are willing to move forward with a full or partial investment, it's time to sit down and discuss terms. Of course, there are many considerations that go into this step, such as number of investors and how much money they are contributing in each fund. Take notes during these meetings as this information will eventually come in handy when preparing financial statements or tax documents at tax time (for U.S. citizens).
Be sure to do background checks on your potential investors. This is easy and affordable with the internet, and can help you avoid some serious pitfalls when it comes to shady business deals. Make sure that your investors are listed in a company database, have professional social media profiles or have a reputable LinkedIn profile. Check them out!
When you are ready to move forward with a full or partial investment, make sure that the funds you are asking for are reasonable. Don't overprice yourself and don't ask for too much either. Try to be as specific as possible with what you need and list items from your business plan. Investors can vet out any specifics that they do not want in an investment and pass on the rest to you if it's something that they do not need or want. By talking with investors beforehand, it will save time and money when preparing your application forms and documents at tax time.
Be sure to get articles written about you in trade magazines or blogs in a variety of industries. Getting your name out there will help build credibility with potential investors and further show them your value.
Host a launch party or demo day event for investors to attend. You can do this by networking with people that would be interested in attending, or by contacting local event venues to see if they would be willing to host an evening for you. Your demo day should include a presentation on what your company does, and how it works. If investors enjoy the experience they will come out of it more excited about investing in you! When preparing for this event, be sure to talk about how they can get involved with you financially. It will help them understand the value that they are getting from investing in your company. This can also build credibility and trust with investors.
It is also important to share with potential investors what they can do to become a more active part of the process. When asking for financial support, make sure to tell them about how their money will be used and be sure to give an outline of what they will have access too.
Make sure you understand the tax laws in your area before opening a business account or accounting software package. Many companies do not understand these laws and, as a result, get audited by the IRS or other departments of their government because of it. Be sure to consult with a qualified accountant before taking this step.
Unless you are looking for a loan from a bank that will charge you interest, making monthly payments to any also credit card companies will cause interest to be charged on your money they give you. The interest is taken out of the funds that are received in order for you to make the minimum payment as required by the terms for your loan. This can add up quickly over time and can ruin your balance if not done properly. Consider finding an alternative way to finance your business by utilizing a peer-to-peer lender such as LendingClub or ProsperLoan .
When you are ready to start your business, don't forget about the many different ways that you can organize your company. For example, you can take a day off every week from work or ask your employees to volunteer to work during these days in order to have a better work-life balance.
You will also need to hire a personal assistant from time-to-time. This person will help you with many of the small tasks that are involved in running a business. They can help organize and keep track of your calendar so that you never miss an appointment. This is especially important for someone who is always on the go or who spends much of their life traveling for business.
Conclusion
If you are the type of person that likes to take risks, starting your own business is a great way to do it. But, if you have never taken on this type of project before, be sure that you understand all of the steps involved in launching your company. Did we miss any important tips? Let us know in the comments! Also be sure to share this post with anyone else who may be interested in starting their own business; everyone has something that they can offer and learning from each other is one of the best ways to do it.
Posted by Jake at 11:45 AM
Jake Smith is a writer for MyPrivateBizClub . His favorite saying is "No risk it, no biscuit.