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 would find that how much funds you get and how quickly you find an investor is attached to how many people you know because many a time, the circle of network you build is your first go-to.
As an entrepreneur, you don’t just woo an investor, get what you need and then run off to make your dream a reality.
The relationship between an investor and an entrepreneur is such that never truly ends, it is sort of marriage without soul ties.
This is because you will always need them, be it now or later. They are always there to carry you when a fall is looming, connect you to other projects and partnerships, as well as offer advises that can always get your business back on the right track.
An entrepreneur is therefore saddled with the responsibility of keeping up with investors in order to position their startups for success and growth in the future.
How then do you build this relationship and make it a solid one, at that? The following are ways to build a solid relationship with investors.
Be Value Adding
No one likes to keep a relationship that does not add value to them. It is true that the relationship between an investor and an entrepreneur is based on finances, however, to maintain this relationship the entrepreneur should consider looking beyond finance alone.
Consider how you can also add value to investors, by adding value to others you build a good network of people and it will further pave the road for more successes. One way to add value is to be a source of knowledge to others.
Be Open-minded
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. Always be open and encourage dialogues with your investor.
Yes, it is your business and ideas, but they have seen many ideas, both failures, and successes, why not consider listening to them too? 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.
Integrity
Difficult to build, yet easy to destroy. Integrity in all things is a prerequisite for building a solid relationship with investors.
Apart from building relationships, it will also expose an entrepreneur to more opportunities and help build trust within the network you have built over time.
Know where you are going and what you are cut out for
It is not enough to just have an idea, you must know what you want and show investors that you do. Investors want to be sure that they will get a return by investing in your business before going ahead to take such a risk. If you do not know what you want, where you are going, and what you are cut out for, then you might never catch the fancy of any investor at all.
Prove Your Worth
Are you worth the risk? Remember that investors are also investing in you by investing in your business, so they need to know if you are the right person to invest in.
You can start by showing investors that you are an expert in your own field, publish relevant articles that will catch their attention and reach out to help other growing startups as well.
Having a strong online presence is also an indication of how much you are worth. Build your social media accounts; LinkedIn, Meta companies (Facebook and Instagram). When investors notice how strong an online presence you have, they will consider you one to associate with.
Let your expectations be known
There is a need to be on the same page with your investors and for that to be possible, you need to make bare your expectations from the very beginning.
Your vision, mission, growth measurement and possibly exit plans, just in case, need to be communicated so that both ends can be saved from later disappointment and frustration.
Give Updates as they may be Required
Investors may not like to dabble in your company’s daily activities, however, it is important to give them necessary updated information. If there is something they must know, do not keep it from them, they will appreciate it and even drop in one or two advice where necessary.
Authenticity and Respect
To build a solid relationship with investors, authenticity and respect are required. 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. Relating on a personal ground could give room for the relationship to blossom and lead to other future benefits for both parties.
No investor wants to be left in the dark, investing in your startup means more than ‘just fund it and disappear’ to them.
Although there might be times when you arrive at crossroads, which is quite normal with every other relationship, focusing on a brighter end should be the goal. If you don’t get used to challenges now, it might lead to more ills and downfalls in the future.
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