Generally startup isn’t business yet, it’s a pre-business model which one day becomes a profitable uninterrupted process. As soon as you decide to become an entrepreneur, there apperas question - “where can I get money?”. One of the working idea is to find private investors for startup. In this case you need to negotiate with people who have a lot of money or with businessmen, some of them will definitely invest money. It’s important to remember one thing: do not involve investors who don't understand startups at all.
Nowadays it’s much easier to find an investor than years before. Particularly the process of searching the investor is simpler and more various than years ago. According to opinion of some experienced people in this area, it is not the same as starting a new business. This process is very hard, challenging and the most risky among the others.
So what is the startup, actually? Some people define startup as “an organization formed to search for a repeatable and scalable business model". The others think, “a startup is a human institution designed to deliver a new product or service under conditions of extreme uncertainty.” One of the most famous news websites has an article where interviewer referred to a seven-year-old airline company as a startup. So it becomes a little bit confusing. But to make this definition clear, we can say that startup is both risk and innovation in one project but arguably it may become a very successful business. It is more than an idea or product, it is the whole process from tech to product on the market. When this product starts to function on the market stably, or even just to function on market making profit - it is not startup anymore. To really understand what startup is, lets look at the word startup - “start” and “up”. When the business model is developed to produce innovative and profitable product for the market, it is possible to call business a startup during this period. Startup has to have innovation and plan of getting profit. Startup is foundation of innovative business.
What makes difference between traditional business and startup is possibility to plan, during startups preliminary. If you are not doing any totally new and innovative business - it’s not going to be a startup.
We’ve mentioned above that one of the ways to find money is private investors' sponsorship, also there are many ventures, investment companies, business incubators which provide money and necessary conditions for lots of interesting projects. Make research on the Internet about them and find reviews about their activity. Moreover there are many of themed events where people who are working on the startups can talk with experts and acquire useful contacts for the future. All you need to do with your startup team is to search for such companies and events, make appointments and go ahead to make presentation. Some of people address to the commercial banks. Banks finance startups rarely, it is unlikely that you get positive answer, still you should try.
Finally, when you are ready to present your startup, make a small test: take 10 people from the segment of the market you are counting on, tell simply, accessibly and briefly about your project. If most people get your idea, crave to get this product/app, you’ll see in their eyes “Wow! I want it”. If they can explain why do they need it, it means you are on the right way! The next step is to represent startup to the investor.
First of all you need to examine the market, even more - you need to know the market. Presentation of your startup project has to be very short and show the conception of this new innovation. Besides, you need to show the investor when and what kind of profit you are planning to earn. Of course, the preliminary planning is not for startup activity as we mentioned above, that’s why we recommend not to involve investors who don't understand startups at all. Your laconic presentation has to contain marketing plan and information about the amount of money needed to realize your startup. Also do not forget to say about team who will work on this project with you.
In addition, please mention that the main problem can be wrong evaluation of your own idea or product. Generally startups will always be the type of business which is quite difficult to predict. But perhaps exactly this fact is the reason why startups attract people's attention and interest.