You can go ahead and try to get an investment any time you want, but if you don`t invest a minimum time in preparation you will invest plenty in trying to find an investor and oftentimes with little or no success. Investors think in pretty much the same terms. Sure, there are differences, but they all look for the same basic things. Check these five basic rules before going for any investment.
Have something special
Do you have experience, some good connections or an edge that will differentiate your business and attract customers? If not you might want to reconsider going for an investment just yet. Find that unique thing that you have and others don`t.
Have a business plan
How is an investor supposed to know how the business can work or grow if you don`t have a business plan. Make one and add a formal short pitch that summarizes what the business does.
Have a clear deal in mind
You have to be confident about your request and to know exactly how you are going to use the money that you are asking for. Know what`s in the deal for the investor so you can present the whole deal as an opportunity for him.
Find willing investors
Like in most fields it is a hassle to chase people around and to try to convince them. Try to deal with investors that show an interest in your business. They will be more likely to collaborate and give advice and it will be easier to deal with them in general.
Test your idea
A big mistake is to go to an investor with just a good idea that was not tested. Use the resources you already have to test the idea and get a few clients before pitching it to an investor. You must know if people like what you are selling and how much it costs you to promote it. You must be able to prove that there is a market and that some people are even actively looking for your product.
Information is power and knowing more about your domain and about how the business can work and grow will bring you an immense advantage. Invest more time in getting prepared and taking the idea as far as you can without an investment and then go pitch it to an investor.