Source | Entrepreneur : By Yash Sharma
How to Approach an Investor for Your Startup
Entrepreneurs face a numbers of challenges when starting a business. Therefore before hosting the flag to any start-up, you must be aware of the fact that the business world cannot survive without the intake of, “Risk.” It has been said the amount of profit or loss always depend on the level of risk being chased. In other words, higher the risk, larger is the profit or loss.
We all are well aware of the fact that the industries survive on the intake of “Risk.” But we should also not forget that to take the risk and make survival possible, money is what works as a lifeblood for business.
Capital is the most crucial point of concern for every start-up firm. Because no business can flow smoothly without funding, therefore the start-up organization should focus on raising funds. The outside infusion always helps a start-up to grow. Hence for raising money and approaching any investor, you need to do some homework on few important things that are listed below.
Clean Up your Credit
If your business does not have any strong background with credibility, then it is possible that investor might demand proof. They might want to see how responsibly you can manage the money and pay your debts. The personal financial track record usually works as a proof.
The lender or investor will always take a close look of your credit history. The credit report can be collected from three major agencies Equifax, Trans Union and Experian.
If you find any mistake, contact the creditor involved and send an edited copy of the letter to all the three agencies by yourself, because investor might be less concerned with your credit score for a time. But you cannot afford risk here as different entrepreneurs have different aspect of judging.