A venture capitalist is a person, or even an organization, that invests money in a business in exchange for a share of the company. Most of you have probably seen the show Shark Tank, where people from all over present their business or idea to the Sharks in hopes that one will invest some money into their business, either to get the business started or to help it expand. In exchange for a monetary investment, and often their connections and knowledge in the industry, the investor will want a percentage of ownership in the business. The Sharks on Shark Tank are not the only venture capitalists out there, there are plenty others looking for a great business or idea to invest their money in. Here are five ways to attract a venture capitalist:
1. Plan. Plan. Plan!
Having a solid plan is crucial to attracting a venture capitalist. Plan, in detail, how you will operate the business, how you will distribute your product or service, how you will manage your finances, and so on. If you already have an established business, even if it seems to be running smoothly, make sure you can clearly articulate how your business operates and your plan for the business, now and in the future, to a potential venture capitalist.
2. Have a strong team.
Make sure all of your employees have defined roles and execute them seamlessly. Nothing will turn away a venture capital faster than a weak team. Your employees, believe it or not, define your business. Many new business owners cannot afford to pay employees and, therefore, family is often tasked with running the business. However, if cousin Johnny is in charge of your finances and aunt