Guest Post: Elena Tahora
Startup companies do not run on just ideas.
There is equipment involved, a place to operate and of course, people to hire. This is where ‘seed funding’ comes into play.
The seed funding is initial capital a company raised to fund the startup. The seed funding can come from the owner’s own pocket but most of the time it comes from outside. In order to raise the money you need, you have to negotiate well with investors.
Raising seed funding can be quite hard so we have gathered a few tips that may help you along the way!
Raising the initial capital for your startup is very important. Why not try and treat it as some sort of a battle? As you know, the best way to raise your odds in winning a battle is to plan ahead.
You can’t just make things up along! It is pretty easy to present your case if you know your business through and through. Try to think of every possible question you might face, the outcomes and the course you want to steer the conversation.
Check the Ego at the Door
There is a huge difference between confidence and ego. You need confidence in order to negotiate well. Ego, on the other hand, must be thrown out of the window in order raise seed funding.
If you allow your ego to take over when you are negotiating to get seed funding, you are lowering your chances of closing the deal.
Remember Body Language
When someone tells you that the way you act is almost just as important as the things you say, that someone is not kidding. Your potential investors will watch you carefully just as well as they will listen to you. So it’s very important to make sure that your body language is positive.
There are certain things that you can do to exude a positive body language, like minding your posture, paying attention, maintaining eye contact, smiling and nodding at the right moment and keeping any negative emotions in check.
Not all of the investors you will talk with will come to a decision in a snap of your fingers. Sure, you are done with your presentations and you have answered their questions. Sometimes though, they would want to think about it more.
That does not always equate to rejection. Be open to future meeting with them and don’t panic yet!
Desperation is not your friend
It might sound contradictory to the previous one, but it’s actually not. Look at the way the people you’re meeting with are acting. Do they look like they’re not interested at all? Then it’s time to move on. Don’t push for more meetings if they did not seem interested at all.
Analyze and Revise
If this is your first time raising seed funding, there is a big chance that you will make a mistake here and there. Do not beat yourself up when you do that. If you fail, look back at everything that happened and analyze it. Once you see where it might have gone wrong, correct it and do better the next time.
Pitch to LOTS of Investors
Raising the seed funding is the next step after you have solidified your business idea. Without it, you can’t turn your ideas into something tangible. That is why you can never put all of your hopes in a single investor.
Pitch to as many investors as you can. Sure, it will take more time and effort but you can also treat it as a way to make your negotiating skills better!
About the Author:
Elena has always been passionate about helping others get the most out of their life and reach their fullest potential. Elena is the digital marketing manager at Greenr Cabs. When she’s not writing, Elena enjoys travelling to exotic places around the world.