How Do I Find a Business Partner for My Startup Idea?
How to Find Yourself the Best Business Partners!
To get any new business off the ground a good idea is much more important than money. But the sad reality is that without the required funds, great ideas seldom get to see the light of day. However, when it comes to the application of money in great ideas, its importance cannot be undermined. So the following is going to be some tips on how you can get yourself a reliable partner and the required funds to get your startup business moving in the right direction.
Get Your First Customer
Depending on the type of products or services that you offer, if you have managed to identify and fill an important need of the market, you will immediately be able to secure a customer with your startup business. To find out your chances on winning yourself your first customer, you will need to answer some basic questions, such as, what is your core customer base? When it comes to making a business networking group, who do you think fits the bill? Have you considered a sign-on discount for all those customers who purchase your product or service first? Or have you considered giving them the payment terms which allows them to accept partial payment up-front? This means that you will be able to get yourself those initial dollars.
Partner with Local Colleges
While looking for a business networking group, more and more colleges are now working towards building a corporate relationship with startups who are dealing with some real-world issues. As an entrepreneur, one can investigate new opportunities at their local colleges and universities to find out if there is a way you can offer your small business case study for the students to analyze. This will not only allow you to benefit from the fresh perspectives of the students, but they can also give some recommendations on how you can reach your goals as a startup entrepreneur.
Try Offering Equity
Since equity is always a complex and sensitive issue for startup entrepreneurs to deal with, an entrepreneur should realize what they are getting themselves in to before signing on the dotted line. That being said, startup entrepreneurs are always in the market for good investors. It is important to note that most investors offer to fund a company in return for equity, as in a share in your business. The plus side to this is that you do not only get the funding you need by these individuals, but can also benefit by getting access to their skills, business networking group and ideas that will benefit your startup business.
It is important to think about your partnership as an exchange of skills rather than just an option for getting future money into your startup business. A startup entrepreneur needs to make sure that they have an idea of where they want their startup business to be in the next five to ten years time. Apart from that, it is necessary that they get everything in writing as it will come in handy for raising venture capital in the future.
How to Attract the Right Investors
The following are some straight forward tips on how entrepreneurs can attract new investors towards their business startup.
Again, startup entrepreneurs need to think in terms of partnerships, rather than, thinking in terms of ‘let’s see how much free stuff I can get.’ This attitude will never work, no matter how good your startup business is. You should want your business partners to feel like they are your partners, that is, if you pay someone based on the potential success of the company, you will get their ideas, blood, sweat and tears too. So, go with looking for a business partner, instead of someone who you will get free stuff from.
Have a Great Idea
The truth of the matter is that no one will work with an entrepreneur that has a half baked idea. So, don’t even think of getting a business partner unless you have a rock solid business idea to back you up. This brings us to another valid question. How do you know that you have a solid business idea? Well, for starters, talk to your family and friends, and even include your business networking group. If all these people think that your idea is a winner, then you can go ahead and find yourself a business partner.
Ever gone skinny dipping before? The first person, no doubt, risks the chance that nobody will have the guts to follow, but by the time two or three people readily jump in, all that risk disappears. That is your mission as a startup entrepreneur. You can create the hype when you meet with your potential partners by selling them the fact that you have several other investors already interested in your business idea. The truth is that nobody wants to be first in line, especially if they can lose what they have paid for, so make as a startup entrepreneur, it is up to you to make the investors feel confident about being a part of the business venture.
Establish Credibility and Trust
Again, establishing trust and credibility is very important from the get go. When you are asking a person who has never met you before to invest in your startup business, you will need to establish credibility almost immediately by talking about your past experiences as an entrepreneur, or any prior business success. If you have none, discuss about your professional achievements so that they can see that you are someone who is capable of handling a business during its ups and downs.
Find out if Your Business Partner is Reliable
So, you’ve reeled in the necessary funds, now how do you know whether your new business partner will be around for the long haul. The following are just a few tips that will get you a business partner for your startup that will stick around and help you weather the storm.
Do a Background Check
When getting to know a new business partner or establishing a business networking group, carrying out a full background check should be mandatory, because you should expect them to do the same thing to you. All companies run one before they hire a new employee, and your no different. And while you’re at it, also include, their personal, tax and criminal backgrounds, preferably through a reputable agency.
Why not? Since you have it, why not use it! Your most obvious option would also be one of the easiest ways of checking someone out. By enabling and disabling personalized results on Google, you will be surprised on what can come from a simple search, and all you have to do is use a little creativity.
While establishing a business networking group, a lot of people you wish to include will claim to have credentials on the internet, that more often than not, turn out to be false. To make sure you’re not hiring the wrong stuff, verify their licensing with a well-known and trustworthy database or use a government resource. These are the quickest and easiest ways of finding out whether they really have the licenses they claim to. It is a very quick and simple way to make sure they have the licenses they claim to.
No matter what the business, startup entrepreneurs will need to create the right buzz, in order to attract the attention of investors you can use the tips mentioned above to get the investors that are best for your startup business. For more information on getting the right investors for your startup business log on to associare.com.