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How to tell if your website or business is more likely to attract an investor
Whenever you start a business or website, you may think you will need an investor to come on board and help a few different ways but mainly to give you money so you can speed up your success. Now, most companies who apply or pitch to investors never get called back, and there are a few good reasons for that. Most of the time, the company you're pitching won't be worth the investor's time because you did not do your homework, and there are thousands of others just like yours.
Below are a few things you should think about if you ever want to entice an investor to come on board and help out your business.
Do you have something truly unique?
One of the first things an investor will think about is if your business is truly unique. They want to see if you have patents, something proprietary that can be patented, or if you're in the early stages of something great that has plenty of room to grow.
If you think you're going to set up an SEO business, automotive shop, craft shop, Web design business, etc. and get on an investor's radar, you're wrong. You need to have something that is truly unique or at least something that cracks the mold if you want to catch anyone's attention.
Is your product or service a game-changer?
Like I mentioned above, cracking the mold is something an investor is always intrigued about, and if you have something that could be a game-changer, then you'll get people from all over wanting to invest. I'm not saying you have to reinvent the wheel, but you should have something that not many others do, and you will see investors start contacting you lol.
I'm a big fan of the show Shark Tank, and they always invest in small products that aren't necessarily new but they have slightly different functions than what they were originally created for. One of the investments was for a dish scrubbing sponge that was in the shape of a smiley face. Yes, something that simple was able to grow into a $100,000,000+ company in a relatively short amount of time because they were slightly different and cracked into the market due to a shark investing in them.
Do you already have some sales coming in?
If you only have a proof of concept, something physical that you haven't sold yet, you may not get many investors on board. Now, if you have some sales coming in already and those customers are recurring, you will open up plenty of doors to investors who will be willing to explode your growth.
Can the big name brands crush you easily?
One thing an investor will look into is if a big box store or company can produce their own product like yours and push you out of the market. These companies have hundreds of millions they can spend on production, so a trademark or patent will definitely come into play here. If you have a patent on how your product works, you could do a licensing deal with a big box store and watch your profits roll in, but you can also lock up the market and sue others who try to rip off your idea.
Getting the attention of an investor is the hardest thing you'll have to do, the rest of the work is convincing them their money will safely grow with your business, and then getting them to write you a check lol. You need to have some sort of proof that you can bring in money and grow exponentially if you want to entice an investor to come on board with your company and help it grow.
Thanks for reading!
- Tommy Carey