If you are planning a business start-up and searching for seed funding, you know you are in for a tough call. You need to find people or organizations willing to help. Some enterprising individuals may have high hopes and enthusiasm to go for their dream businesses but there are also those who make mistakes despite the knowledge they can get online.
If you are seeking for seed funding for your business idea, here are some mistakes to avoid:
Not doing enough research about essential things.
There are founders who spend time developing their product or service, the market and the other aspects of starting a business. However, they forget to research on another important thing, the investor. Do not be other entrepreneurs who send emails to potential investor without getting more background information on the investor personally and the organization he or she is affiliated with. To increase your chances of being funded, it is important to share the same advocacy and views with your prospective investor. By doing your research, you can find the right people who will invest.
Not investing time to build a business relationship.
There are young aspiring entrepreneurs who are side-tracked on closing a deal and getting funded during the first meeting with a potential investor. Although this can work, it is still important to build a solid relationship with your investor. Remember that even two entities looking for mutual benefits in closing deals need to establish a business relationship first. Do not forget to ask questions and know about what they think about investing in your business.
Do not try to impress with mere market revenues.
Some entrepreneurs are so eager to explain to their contact person about how much the business is predicted to make without considering that investors will do their own research about the market and make their own evaluations. Knowing the ins and outs of your business is essential so you can prepare your seed funding pitch. It also does not hurt to ask so be assertive.