1. Research, research, research
You need to understand the market you're planning to launch into. This means scoping out your competitors and any hurdles that might need to be overcome.
In essence, think about doing a SWOT analysis of your idea. Going through this process is essential because you'll most definitely be quizzed about these sorts of business fundamentals as you progress from the idea stage through to funding.
And don't think investors will go easy on you just because you've never been through the process before. Investors will certainly have lost money before and they'll be mustard keen to avoid doing so again.
2. Get thinking straight
An idea doesn't have any value, no matter how good it is. It is the execution of the idea that creates value. So, don't get hung up on your initial concept.
Rather, think and talk about the business that you're building around the idea. You should also be able to explain your business succinctly, maybe in just one sentence. Be sure you can explain the problem you're looking to solve and how your business will solve it.
If an investor doesn't understand your business – even if it's amazing – they'll pass it by.
Your business's reasons for being – its mission statement - should be echoed consistently across all communication channels at all times.
3. Planning and milestones
Taking a project from an idea to a fully-fledged business can seem very daunting. For this reason, Tim Davies – investment director of Seedrs – writes about giving yourself a series of achievable goals.
Beyond providing you with both encouragement and direction, having a solid plan also looks good to investors. You might, for example, raise capital so you can achieve phase one, and then return to the funding market and ask for cash to begin phase two.
If the first chapter of your business story was a success and your investors are happy, you should find it easier to entice a second wave.
4. Raise just what you need
Spending other people's money is fun, but you'll have to pay it back. So, it pays to work out exactly how much money your business is going to need. This means you will have to pay less back and, also, it will serve to convince prospective investors.
Anyone looking to invest their own money in a project is much more likely to trust somebody who can show that they're serious about cash management. So, get your calculator out, fire up Excel and then work out the exact sum of money your business needs to work, and – at this stage – no more.
5. Make a video
The most potent way to tell your business's story to prospective investors is to make a video. You don't need to make an epic – consider three minutes the maximum length of time you have to convince people.
When you're planning your video, ensure you communicate your business's key pledges and the problems you're looking to solve very clearly. It also helps to have a logo at this point, too, because it conveys permanence and solidity.
6. Don't go live just yet
Veequo founder Matt Warren – writing on his firm's blog – offers a great tip. Before you launch your funding campaign, talk with your friends and family, and persuade them to promise some small contributions. When your campaign does go live, their financial support will give your project an instant lift.
This is beneficial because investors don't generally like to be the first to pledge money. Rather, they prefer to see a project that's already generating some momentum and is already going somewhere. So, don't hurry into going live as soon as you can.
It pays to get some early, pre-backers primed and ready first.
7. Embrace social media
When your campaign is up and running, you need to be able to create a real buzz around it. Just sending out a press release is probably not going to be enough. You need to be fanning the flames with social media.
There is, of course, a huge number of platforms to choose from. If you have limited resources, you need to focus your attention on the ones that investment professionals are likely to use: LinkedIn and Twitter. Get your team involved, too.
The key is to have a constant output of messages. Don't splurge and then go quiet. And don't view social media as a one-way street. Talk with people who take the time to message you.
8. Don't forget offline, too
It's easy to rely purely on digital promotion to promote digital products. There is, however, no substitute for getting out and meeting prospective investors face to face. There are lots of meet-ups where new businesses can network with professional investors.
To find out about such gatherings near you, try visiting Lanyrd. It's a site that chronicles a huge number of professional events that happen around the world. In many regards, it's the ultimate diary. Alternatively, look up Silicon Roundabout on Meetup.com] The point is, don't just sit back and expect investors to find you – there's a dizzying array of projects vying for their attention.
