Let's raise your company's capital!
Finding partners, investors, or qualifying for a financial aid plan to build your capital can be a difficult task, so you must be well prepared and organized. Demonstrate that your proposal has the potential to become a profitable business and achieve your first business success with these simple steps:
1. Develop a value proposition
To receive the money you're asking for, you must first offer something in return. Therefore, before venturing into seeking financial support, prepare a presentation with your value proposition. This proposition should state why you want the money (explain what your business is about) and specify in detail how you will invest it to generate profit.
2. Prepare a convincing speech
Having a compelling proposal isn't enough; you also need to know how to sell it. In this regard, you may need help structuring your pitch and knowing how to communicate it, as it's imperative to be persuasive enough to achieve your goal.
To properly explain a project, it's better to explain its objective rather than simply stating what it is. You should also provide reasons for supporting you and your project, including briefly mentioning your achievements and experiences.
Remember that getting the yes you want will depend on this statement of purpose, so when preparing your pitch, consider the following:
Be brief: This way you will avoid losing the attention of your interlocutors
State what problem you solve: For your proposed product or service to be compelling or significant, it must represent a solution to a problem.
Use simple and understandable terms: Avoid technical terms so that all types of interlocutors can understand you.
Highlight the benefits of what you offer: The benefits and advantages of our product or service tend to attract more attention than its features.
3. Contact several investors with different profiles
In this particular case, we can say that more is better. What do we mean by this? You should talk to many investors at the same time and try to get them from different profiles. Don't limit yourself to a small group of options; this way, you'll have a better chance of getting a visionary to say yes!
4. Look for other alternatives
Don't limit yourself to seeking support from private partners and investors. There are multiple options available to raise capital, including the following:
- Supportive financing from the government and other public institutions: In Chile, there are several support programs promoted by the public sector, such as the Yo Emprendo programs of FOSIS, Capital Abeja Emprende and Capital Semilla Emprende programs of Sercotec, or Par Impulsa and PRAE programs of Corfo.
- Financing from private organizations and institutions: Private organizations and companies have also developed alternatives to help new entrepreneurs, such as the Brain Chile program , promoted australia phone number database the UC Anacleto Angelini Innovation Center, the School of Engineering and the Directorate of Transfer and Development of the Catholic University, and Banco Santander.
Another Banco Santander initiative, through Santander Universities, consists of a university entrepreneurship competition, Ideas X, aimed at the entire university community in the country. The objective is toteams to gain knowledge and develop skills, while strengthening their ties with companies, thus increasing the possibility of developing their initiatives with a focus on specialization and financing.
- Support from a sponsor investor or local investor: These are typically individuals dedicated to investing who are willing to help entrepreneurs with capital contributions in exchange for an equity stake. These differ from other types of investors in that they make the contribution on their own behalf and not through a company they own.
- Investment funds and banking institutions: You can also seek support from an investment fund or traditional loans offered by various banks. In these cases, we recommend carefully analyzing the facilities, benefits, and interest rates involved.
You might be interested in: Seed Capital: What is it and how can I apply to receive it?
5. Set standards to be as transparent as possible
When it comes to money, it's best to keep your accounts straight. So, when communicating with potential investors, it's advisable to detail the timeframe for when you'll need the capital, the interest rates involved, and, of course, the estimated timeframe for seeing the benefits of that investment. Being decisive, resolute, and convinced is a plus when negotiating. Just be sure to set reasonable deadlines to fulfill your promises.