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Getting Investors And Really Basic Business Basics

By Jeffery Wood | September 14, 2009

First let me start of with, “I don’t have a list of investors”. I was helping someone who is in the beginning stages of setting up their own business and due to a misunderstanding, we ended up on this topic.

I have looked into both getting investors, selling ideas, and investing (though not investing directly into start-ups) so I have some ideas and know a few things to look for.

If you are trying to get funding for a product you’ve thought of, then here’s what you need: a prototype and a sales pitch which emphasizes the benefits to them (your potential investors). There are angel investors around, I used to have their websites, but you’ll need to do some research with your favorite search engine.

Here’s what to keep in mind: it’s 90% on you and only 10% on them. More specifically their 10% involves a few things such as: Do they currently have funds and is your business compatible with their investing goals (for example, approaching a real estate investment group about clothing lines will be much less successful).

You need to both be genuine AND appear genuine and trustworthy. Forget what you’ve heard about the “but he seemed so honest” scammers and think more about the “honest person who didn’t come across that way”.

You need a good sales pitch, because you are trying to sell them on investing in your business. There’s a couple of things to keep in mind, PT Barnum, the circus guy, was a genius at getting help for his business (he didn’t start running a circus until he was in his 60’s, he was rich and famous long before).

He started out his pitches with “I’ve got something that will increase your exposure” not in those words, but that’s the idea. He started out talking about the benefits they would gain from partnering with him in whatever it was, then went into what it was and what they needed to do to receive those benefits. He also went ruthlessly for a win-win situation.

Something else is a formula called AIDA. Almost every successful sales page follows it. Attention Interest Desire Action. The headline and maybe first paragraph catch their attention, then it moves to creating interest, then create desire for the product or service and then calls them to action (for them to do something ) like join your newsletter, buy the product etc.

Your sales page/pitch should be about just getting one thing done and not complicating things giving them too many things to choose from, just focused on one thing (buy or signup, etc).

Simple and complex stuff all at once.

Be honest, genuine, sincere. Know your stuff. The sales page should prove those things, not be in the place of those things.

- Jeffery

About Jeffery:
Jeffery Wood, author of "Learn How To Set Up Your Own WordPress Blog And Forum" is a Part-Time Internet Marketer.

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Topics: Productivity, Resources, blog, blogging, business, how to | 1 Comment »

One Response to “Getting Investors And Really Basic Business Basics”

  1. angel Says:
    November 25th, 2009 at 02:06

    This would help me for my further hunt for genuine investors and entrepreneurs , and even improve my appearance and approach as per your guidelines.

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