According to a Fortune.com report from 2014, nine out of ten start-ups fail. As a result, 90 percent of new companies fail to leap from the drawing board to the real world. According to the same report, a shortage of adequate resources is second only too inadequate (or worse, non-existent) consumer demand as one of the most important reasons for these failures. In reality, a lack of cash accounts for nearly 30% of start-up failures, demonstrating that capital is the company's lifeblood.
A new type of business investor is emerging in today's business world, searching for lucrative investment opportunities not just in their own country but also in other countries. With this demand in mind, it is advantageous for entrepreneurs to keep an eye on global markets and investors to find new funding opportunities for their company. How to get foreign investors for your company is the most critical question? It is not a cakewalk thing. It takes time, commitment, a strong belief in your business, and the ability to handle rejection. However, with the right tools and planning, you can be well on your way to breaking into a foreign market with the backing of a global investor.
Now let's look upon some of the steps on how to get foreign investors.
1. Start with a confident and robust business model.
Every good business decision is based on a solid and well-thought-out business model, a blueprint for your company's success. It determines the sales streams, customer base, and financial information.
2. Create A Minimum Viable Product (MVP)
A minimum viable product (MVP) is a product built from the ground up with only enough functionality to satisfy the needs of the first few customers. After considering feedback from the MVP's initial users, it is the final product, with its complete set of features designed and built. When investors can see a concrete representation of what they're investing in, they're more likely to do so. Creating a working MVP – or at the very least a prototype – and showing it to potential investors can be the difference between success and failure.
3. Build an international market
If your business model is the pillar, networking is the engine that propels it forward. Without a strong network, it's challenging for any business to get off the ground, but it's even more difficult for a company trying to expand internationally.
4. Use available resources
Consider your network to be one of the most valuable assets, which is why putting in the effort to create a strong one is critical. You can use your network to make trustworthy introductions to investors or investment groups and provide advice and guidance when problems arise.
There are several online services available to small business owners seeking investors.
To get foreign investors for your business is not an easy thing, but it is also not impossible. With proper strategies and implementations, you can conquer this quest too.