How to ID Investors for Your Startup Business

“How do I identify investors so I can start my company?”

This is one of the most frequent questions I get from hopeful entrepreneurs. It is often centered on getting VC (venture capital) or angel investments.

Here is my short answer! Don’t.

I have nothing against investors. But, practically speaking, most of investors are not going to invest in ideas. Instead they usually want to invest in a company that is taking action. So if you want investors to be interested in you – start by making money. Trust me. A company that has made some money without spending much up front is very interesting to investors!

So, figure out how to start with nothing or next to nothing. We call this method of funding “bootstrapping.”

How to start with nothing – some practical hints.

• If you need a storefront for your big grand plan, can your start out of the trunk of your car or by selling on the internet? The result would be that you learn what products the customers really like and which they do not. You get to test your assumptions.
• If you need a giant piece of software to solve a problem in industry, can you start by offering consulting for your customer base. By doing so, you learn more about the problem and establish yourself as an expert.
• If you need a nice plush office, forget it. You have the wrong idea anyway. Even Warren Buffett does not do this.

Point is – get started NOW and do something to bring in some money. Forget plans, forget investors (at least for the moment) and just make something happen.

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