Many startup’s success is attached to how much funds they can get to encourage the growth of the business and to get funds, investors are the real deal as they enable the business to grow at a stable pace while also being in touch.
You’d be surprised at how quickly and how much money you can get from investors. This is because the number of people you know is often your first network.
As an entrepreneur, you don’t just woo an investor, get what you need and then run off to make your dream a reality.
An investor-entrepreneur relationship is one that is never ending. It is like a marriage without soul ties.
Because you will always need them, no matter what time it is. They can be there to support you during a crisis, help you find other partners and projects, or offer advice to get your business on the right path.
Entrepreneurs must keep up with investors so that their startups can succeed and grow in the future.
How can you make this relationship work and keep it that way? Here are some ways to establish a strong relationship with investors.
It is not a good idea to have a relationship that doesn’t add value. While it is true that the relationship between a investor and an entrepreneur is based on financial resources, the entrepreneur should look beyond finances to maintain the relationship.
Think about how you can add value to investors. If you are able to add value to others you will create a strong network which will lead to more success. Being a source for knowledge is one way to add value.
Do not be too engrossed in your ideas that you don’t give room for other possible ideas or you will miss out on a big game. Encourage dialogues and open communication with your investor.
Although it’s your business and ideas, they have also seen many failures and successes. So why not listen to them as well? Do not close your mind to others’ ideas, thoughts or suggestions.
By being open-minded, you will know more about your investors, a risk they are willing to take and the ones they’d rather not.
Although it is hard to build, it is easy to fall apart. For investors to have a strong relationship, it is important to be honest in all aspects.
This will not only build relationships but also open up new opportunities for entrepreneurs and increase trust in the networks you have created over time.
Know where you’re going and what you have in store for you
It doesn’t suffice to have an idea. Investors need to know what you want. Before taking on a risk, investors want assurance that they will see a return on their investment in your company. Investors might not like you if you do not know your purpose, where you’re going, or what you can do.
Demonstrate your worth
Are you willing to take the risk? Investors are investing in you through your business. They need to decide if you’re worth the risk.
Investors can begin by showing them that you are an expert in their field. You can also publish relevant articles and reach out to other startups that are growing.
Your online presence is a sign of your worth. You should also build your social media accounts, such as LinkedIn, Meta businesses (Facebook) and Instagram. Investors will associate with you when they notice your online presence.
Your expectations should be known
It is important to be on the same page as your investors. You must be clear about your expectations right from the beginning.
To avoid disappointment or frustration later, it is important to communicate your vision, mission, growth measurement, and exit plans.
Keep up-to-date as necessary
Investors may not like to dabble in your company’s daily activities, however, it is important to give them necessary updated information. Do not hide anything they may need to know. Investors will appreciate the information and, if necessary, even offer some advice.
Respect and authenticity
Trustworthiness and respect are key ingredients to building a strong relationship with investors. Don’t restrict your relationship with investors to business levels alone, break out of your shell.
Don’t be afraid to get a little personal with your investors, don’t just abuse the privilege when you are let in. The relationship could blossom if both sides can get to know each other on a personal level.
No investor wants to be left in the dark, investing in your startup means more than ‘just fund it and disappear’ to them.
You might find yourself at crossroads from time to time, but it’s normal. The goal should be to focus on the brighter end. If you don’t get used to challenges now, it might lead to more ills and downfalls in the future.