Every entrepreneur who is interested in finding and obtaining financing for the development of their own business, first of all, should be able to realistically assess the risk profile, including for investors, creditors, banks, venture capitalists, and to the extent possible to try to minimize the associated risks. To get started, you can use the following methods:
1. Create an Advisory Board
The Advisory Board usually consists of product specialists and experts in other specific areas who contribute to the development of the business through their practical advice and the necessary connections. To stimulate the work of the Advisory Board, it is enough to provide its members with a stock option. By creating an Advisory Board, you demonstrate to investors that many successful and professional people believe in the success of your business.
2. Appreciate Beta Consumers
Beta consumers are a group of consumers who are offered free of charge to use a particular product or service in order to check their quality and availability of demand because basically such consumers do not want to waste time trying something that they do not need and that is of no interest to them. Beta consumers will directly report the advantages and disadvantages of your product or service, which will allow you to make the necessary improvements in a timely manner.
Conducting such market research will give your potential investors additional confirmation of the relevance of your business project.
3. Encourage Collaboration
Having partnerships with manufacturers and distributors will not only help you position yourself as a successful businessman, but also strengthen the reliability of your business to investors.
4. Keep in Touch with the Media
The media pay attention to a particular business enterprise only if they are sure that the information provided will be of interest to the public. Following this logic, it can be argued that the coverage of your business in the media will also indicate the presence of interest among potential customers.
5. Generate Income
Only the fact that the goods or services you offer are successfully sold on the market can be an unconditional confirmation of the presence of customer demand.