When starting a business, the first factor is deciding if an external investment is necessary. Check your metrics, projections, industry size, and the actual market opportunity for your company. Once you complete this analysis, if you determine it is necessary, ensure you know exactly how much you need and under what terms you will be willing to accept this investment. Please do not make the mistake of assuming any amount without knowing the fund from which it comes. In some cases, due to lack of experience, we give up too much shareholding, which could be a wrong economic decision for you.
An investment round requires an approximate time of six months, during which you will look for investors who want to participate, make presentations, have several negotiations, and finally manage to raise the necessary capital. Think that during those six months, at minimum, your company should be able to support itself. Otherwise, what can happen is that you start the investment round. 
Still, before you can even close negotiations with a first investor, your company is in bankruptcy, forcing you to complete. If you manage to survive those first six months, your first round of investment should be able to keep you for six more months. This term, you should get sustained growth of 3 years, and after this time, you will reach an equilibrium point from which your company can have a higher income than expenses, and then you will have growth possibilities.
Now that you know exactly how much capital you need for your business, we share these five steps.
Approach Investment Funds
These companies are dedicated to injecting capital into new companies in search of new business options. Once you choose a fund, it won’t be easy to convince them to invest if you don’t have a well-developed business plan that shows them the growth options and goals you are targeting. An important detail is choosing a fund that may be interested in your company’s turn. How to know: Enter their website and meet other projects they have invested in.
It will also help you connect with other entrepreneurs who have received investments from that fund, with whom you can talk about the benefits they received. Another option is online investment funds, which have other services to better approach your search. Or, for example, you can look for crowdfunding options such as Kickstarter or Fondeadora, through which users invest a small amount that when added, achieves the capital you need.
Prepare Your Material
Collect all the information and data you think can help you make a compelling business presentation. Perform an in-depth analysis of your company’s current finances, organized and audited by an accountant, which allows you to present the current situation and generate realistic projections. Do market research that will enable you to explain to investors why your business is a good investment option, which will have optimal results in the short, medium, and long term.
Leave a Good Impression
Once you have chosen the fund you want to approach, plan how you will present your business. You only have one chance to leave a good impression that captivates them and gives them reasons to believe in you and your company. Ideally, create a short presentation that explains through a story the problem, the existing market opportunity, the solution you propose, and why you are the best solution available. Establish the competitive advantages that your company offers, what you have achieved so far, and future objectives. Remember that investors will invest in you in new business, so communicate as clearly and effectively as possible. Explain your investment needs and the share percentage you are willing to assign.
Be Patient
Resolutions on this type of investment are not overnight. Allow investors to evaluate your proposal and give you an answer on time. Once received, review the options offered and negotiate the points you disagree with. Remember that the business is yours at the end of the day, and you mustn’t risk your motivation and push to get an investment that is not necessarily what you need.
Get to Work
Once the capital is received, please do not use it to pay your salary or your partners. This investment must be for the growth of the business. I intend to achieve the results proposed to your investors in the shortest possible time so that you present yourself as a case of success and be subject to the second round of investment if necessary.
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