5 foolproof ways to attract investors for e-commerce business
In the past year, staying at home has evolved from being a luxury for the weekends to a life-saving necessity. But the daily needs of an average person have only grown in our times. Ecommerce has allowed us to trade from the comfort of our homes. Everything, from clothes to grocery to electronics to blue-chip shares can be bought with a few clicks on a screen.
In this booming sector, carving your own little niche is as simple to set up as it is difficult to run. The key challenge for every new business- finding the right funding. Attracting investors, in very basic terms, is convincing someone to part with their money to help you run your business. To ease your journey, here are 5 foolproof ways to attract investors for e-commerce business:
RESEARCH:
Gaining funding for your e-commerce business can be achieved through multiple avenues in present times. It is essential that you do your research and have a clear vision in mind while approaching potential investors. You should have a clear idea about
- the amount of capital needed
- the percentage share you can part with
- prospective future of the business
Remember, confidence is the key. Use this Market research template to guide your investors through your ideas effortlessly.
Download e-commerce Market Research PPT Template infographic
NETWORK:
For a budding entrepreneur, moving in the local start-up circles is essential. Meeting fellow business people, building relationships in the investor community, participating in the pitch contests, are all good ways to gain an additional level of authenticity with your investor. Remember, business is about people. It is crucial, building trust for oneself. Approaching a potential investor with a strong reference instead of without one is always better.
Without any ado, download this E-commerce Network PPT graphic and establish an unbreakable circle.
PARTNERSHIP:
The best things happen in teams. Have a solid founding team for your business. The co-founders must be skilled, active, and dedicated to the success of your business just as much as you. A strong team pitching an investment idea is a point of confidence for most investors.
PROFITS BRING FUNDING
And vice versa. Show results at a small, self-funded scale to your investor before approaching the scope of expansion. If they know that the project they are putting money in is a profitable venture, convincing them to invest becomes much simpler. This is also a good way to increase your net funding for a smaller share of the equity.
Start small with orders that you can finish without outside funding. Bringing in even a margin of expected profits in the initial stages of your business is a great way to show the potential to an investor.
Pick this benefits of PowerPoint presentation and showcase the profit margins achieved.
Download E-commerce benefits PPT Slideshow to showcase the advantages
KNOW YOUR OPTIONS
There are multiple ways to finance your bidding business in today’s day and age. Each of these comes with their own set of pros and cons. Knowing about all the options available to you will help in making the right choice. From bank loans, angel investors, venture capitalists or going for crowdfunding, there is a sea of choice before every fresh entrepreneur. The detailed knowledge of your financing options allows for a better judgement in choosing your investors. This, in turn, improves your odds of securing the desired funding on the terms of your choice. So, choose carefully after doing your homework!
Elaborate in detail the various funding options available to boost e-commerce by downloading this Business Bridging PPT template.
Nurul Sulistian went to the University of Arkansas and graduated with a degree in business management. Now instead of studying the business he writes about everything and enjoys stirring the pot.
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