Many entrepreneurs are afraid to seek investors because they believe an investor will stifle their business journey, but in reality without an investor, entrepreneurs will struggle to enter the marketplace and it will be difficult to move through the business life cycle.

An investor is any person or other entity, who commits capital with the expectation of receiving financial returns. Investors utilize investments in order to grow money.

Having an investor increases the legitimacy and credibility of your business. Investors also have the ability to assist with improving your business plan and pitch. It is a good idea to work closely with an investor while planning, in an effort to attract more investors.

Investor responsibilities combine finance, communication, and marketing to effectively control the flow of information between a company, its investors, and its stakeholders. As it relates to that fact, it is important for companies to maintain strong, transparent relationships with investors.

In more simple, plain, terms it’s because the investor believes they can make money with your business. Professional investors, whether they be angels, an individual or with a group, or venture capital firm, have a very simple objective: to get a minimum targeted return over a specific period of time, while assisting your process/progress! Maintaining such a relationship will ensure that you get from points A to Z more expeditiously.

Below are some quick steps/tips:
  • Do the thing you say you’re going to do.
  • Start small — small enough to track your growth— and then build up.
  • There are levels to this: Make three people love you. Then ten. Then 100.
  • Ask for advice, not money.
  • Be authentic.
  • Consider an equity crowdfunding campaign when the time is right.