Business investors are typically looking closely at prospective investments for certain milestones and characteristics. These criteria can often provide a glimpse into the future potential and growth of the opportunity in question. Before you begin the search for business investors, consider and complete these three milestones:

Validate the Need

This is a phase that will require some legwork and sweat equity. You need to determine what the market is for the product, service, or project you are proposing. This includes getting out and finding rival companies that offer similar things, or businesses that provide the same services. Find out if there is a need for what you are trying to gain investors for.

Confirm that there is an unmet need- and offer a solution or alternative to meet that need. Instead of putting all your attention on the product that you are selling, focus on solving the unmet need of the buyer. This is what will help your brand develop, grow, and succeed- which will be very appealing to potential investors.

Develop your Niche

Now that you have established what the issue or unmet need is, put your efforts into streamlining and finetuning your offerings. Create a viable product or demonstration for prospective investors, so they can see your plan in action. Have you heard of a prototype? This is where creating or crafting a prototype comes in; don’t go to investor meetups empty handed.

Once you have samples of what you plan to produce or offer, take them to the customers that are most likely to need, want, and buy it. Ask for feedback; what would they do differently? This is market research, and it is integral to the process. Plus, investors want to see this research and hear what consumers have to say.

Set Realistic Goals

Don’t be unrealistic about the returns expected on investments. Some businesses are not going to be venture-scale operations for some time- if ever. That does not mean that you cannot make a decent living off your ideas, but it may be that it is not prudent for investors to risk. Don’t be dismayed; you have other options for funding your business, brand, or company- you just need to meet with and talk to a professional about alternative financial resources.

If you are looking for funding sources for your small business or project, talk to the team at Rustwood Capital. They are in touch with alternative lenders and know where to look to help you finance your endeavors. Call or visit today.