So your business is growing and you’re thinking about expanding so that you can stay on top of all the work that is coming your way. At this point you probably realize that in order for you to take your business to the next level you’re going to need to find investors to help you out. Now this task can be a difficult one for anyone to accomplish so make sure that you don’t make any of these classic mistakes along the way.
Making Cold Calls – No matter how good your pitch might be it’s best to just avoid making cold calls. These days there is no one out there that enjoys getting a call from a telemarketer or salesperson that they didn’t ask for. From the beginning of the conversation you will be fighting an uphill battle with someone who is only interested in hanging up on you as quickly as possible.
Unannounced Office Visit – It might have been a common practice years ago to “pound the pavement” by going from office building to office building trying to make sales and gain business but we wouldn’t suggest going back to this old trend. Going into an office unannounced and without an appointment is just going to be a recipe for disaster and rejection. When meeting with potential investors you don’t want to appear to be unprofessional (or desperate), so do the right thing and schedule an appointment with them first.
Attending Open Networking Events – Don’t mistake this final point for saying that you should never attend any open networking events; this is not the message we’re trying to send. If you’re hoping that you’ll find your next big investor at a networking event though you might be setting yourself up for disappointment. The serious investors don’t need to attend events like this because they are already surrounded by people who are telling them about great ideas to put their money into. What you want to do is find out who they’re listening to for investing suggestions so that you can make sure your business is put on the list.
If you’re interested in reading more about what you should watch out for when looking for investors be sure to read “3 Worst Ways to Find a Potential Investor” by Under30CEO.com. Also for some tips on where you can find potential investors for your business read “Top 10 Websites to Find Angel Investors” by Adam Hoeksema, Founder & CEO of ExecutivePlan.