Whether you are interested in starting a cryptocurrency exchange or becoming a blockchain consultant, finding investment for a new blockchain business is not the easiest of tasks. Entrepreneurs all across the world can have the greatest ground-breaking idea, but without adequate funding, they have no chance of getting their idea up and running.
There are many ways to go about finding investors in a new business, all of which require careful and diligent planning and preparation. Asking your friends and family to invest in you is no exception.
You must be professional
Even though you are asking for investment from people you know, it’s essential to understand that it does not make it any less of a business transaction. Lay some ground rules to easily separate this business deal from your personal relationship with them. Make sure that they know when it is appropriate to talk business and when it is appropriate not to.
You must choose your investors with care
No matter how long you have known them for or how much they believe in you and your blockchain business, do not accept investment from people who are not financially stable enough to give it. There is plenty of other places in which you can obtain funding, from bank loans to bad credit loans to fundraising. Don’t take from people who cannot afford it.
That being said, people in your life will want to offer their advice, it could range from logo design to how to host your office Christmas party. Everyone has advice to offer and at the start of a business, any advice freely given should be gratefully accepted. If you have someone wanting to invest who you know cannot afford to do so, be sure to find another place in the company where they are able to offer assistance that is not going to affect them financially.
You must not hide your intentions
You wouldn’t show up to an investor meeting and not tell them everything about the company they are investing in. So, it is crucial that you do not do that with your friends and family either. Full transparency and honesty are how you can successfully build business relationship, according to smallbiztrends.com. If you believe that your friend will not understand the business you are starting; if you explain the whole inner workings of it, perhaps then they are not the investors you are looking for. Find funding elsewhere.
You must allow them to say no
Just because they are your friends and family does not mean that they are going to willingly sign you over a chunk of money for your new business venture. No matter how well you present your idea, or how successful you predict your business will be, your investors are allowed to say no. This can be a devastating blow to your business and personal relationship if you let it. To make sure that this doesn’t happen, get them to explain their reasoning behind the no. A lot of the time their reasoning is perfectly valid and doesn’t mean that they don’t believe in you but that it is simply not the right time for them to invest.