Using the power of influenza A in order to entice investors to venture capital to invest in your business

Most investors prefer to keep their money trust their money to someone else so what does it take to convince an investor to invest?

Based on the fact that investors from a position of No when asked to invest what you can do to influence this decision (assuming that all the business basics stack up)?

You can use the 6 universal principles of influence. They are:

First: Reciprocity. People give you the kind of treatment they received from you.

Treating the potential investor with respect. Do some research on them, find out what they like, what they have previously invested in, what causes the support and, if possible, what are their values.

Second, scarcity. People will try to seize the opportunities presented to them that are rare or decrease in availability.

You could have a position available for an investor on the board properly. Maybe you are looking for a small number of investors and you only have one or two places to the left.

Third Authority. People will be more convinced when they see you as having knowledge and credibility on the subject.

Preparation is the key. You must know the product. Your market. The competition - yes, you will always have competition - if you think that you have not done your market research well enough.

Fourth: Commitment. People feel the need to accommodate your request if it is consistent with what we have publicly committed in your presence.

Remember that the presentation of an investor is no different than making a sale of the product to a potential customer. You must identify the investor is looking for, ask them if they are willing to invest if all of these concerns are met, then show how your business or investment opportunity meets or exceeds each of the elements identified. If you can do to have eliminated all of their concerns regarding the investment for your business, so it comes down to the fifth point.

Fifth: sympathy. People prefer to say yes to the request to the extent that they know and like you.

Remember the golden rule. Investors invest in people more specifically to investors to invest in the team. Venture Capitalists have been quoted as saying they would rather invest in a product class B and class management team to a Class A product with a management team of class B.

As an investor to invest is like a courtship. We are planning to have a long term relationship with this person so it is important to understand what they are looking for and that is important for you to communicate your plans to them. Not necessarily at the first meeting, but certainly before the actual investment is made.

Accordingly, you should begin to meet potential investors, business angels and venture capitalists long before you actually need for investment. So get networking.

Finally: Consensus. People will probably say yes to the request if you give them proof that people like them have said yes to it.

It 's easier to get the second investor than the first. Funding the second round is usually easier to fill the first round of funding. This means that you need to identify other businesses and / or investments that are similar to yours, maybe in another market or geographic location, which have received investment financing.

Alternatively or in addition to the above is necessary to have a strong card. If investors see that you were able to attract a strong council then these people are making an investment of time, energy, commitment and knowledge that meets the requirement of consent, even if the contribution is in a different form.

It is often easier to convince people to become members of the board in the early stages of what is to obtain financing, so it pays to focus on that in the early stages. This has the effect of preparing your company to be attractive to investors at a later stage, to expand the network of companies will meet the fifth, showing that you and others are demonstrating commitment - on the requirement.

Where to start? Begin applying the principles in daily life, your business and then when you get to interact with these investors will come naturally to you, thereby positioning you and your company or investment opportunity is its best possible light for and entice investors to invest .......