Coming up with a new invention is almost impossible. Nothing is new, but most of them are improvements of the existing innovations. Approximately 700, 000 graduates join the job market every year yet the available job opportunities keep shrinking per year with the current unemployment rate at 11.50%. Therefore, entrepreneurship is a venture that will help youths, and more so graduates earn a living. Forging an idea is not hard, but the real struggle is sourcing funds to implement it.
Though there are numerous sources of money to start investing, getting to convince an investor that the idea is good, and workable is not easy. Given the number of people looking for venture capitalists for their inventions, projects or business ideas, no one has time to listen to a youth whose proposal is not well defined. For a fresh graduate with a project, acquiring a loan can be a real hustle since there is no income. Hence, the bank might not be ready to give a loan to such a person with the fear he/she might not be able to repay it.
Seeking sponsors becomes the easier option but if these graduates are not well versed with what it takes to convince a financier to support one’s proposal, this will equally be a tough task. With the following few tips, a young inventor looking for finances might be able to get a kitty from a stakeholder, and implement the plan. An innovator must be able to answer these four questions to a guarantor without struggle.
The first question is what do you have to offer or what is the idea? Most investors don’t have a lot of time so do not give them stories. Summarize your idea and say it in one minute at most. Be clear and precise so that the sponsor will not have to ask cut you short and ask for clarifications. If it is a business proposal, name it and give a brief explanation so that in case the lender has never heard of it, at least he/she has an idea of what it is about.
The second question, who is your target market? If you have a project that needs implementation, it must have the target market or audience. As the originator of the scheme, you need to have thought this through before approaching any financier. For you to be asked this question, they want to know if your idea is necessary. Therefore, clearly identify your market so that any contributor will have confidence in putting his/her money in your project.
The third question could be, what problem are you trying to solve, or which market gap do you want to fill? Investing in a common business can be risky for a business because competition might cause a fall of the proposition. A banker will want to know the problem being solved because that means no one has done it therefore there is no stiff competition. As a young developer, brainstorming concerning the market will help you know if your invention will see light of day.
Shareholders also want to understand your objectives as the deviser. They want to know your motives and decide whether they agree with them and would like to be associated with them. The worst thing for any inventor is not comprehending the objectives. If you don’t know why you are doing something, no one will trust you with their money. Thus any innovator should have all the above information when approaching a financier since they want to see the value of their money if they sponsor the idea.
Investors don’t have time to listen to you if your house is not in order and you don’t have everything figured out. Therefore, as a creator think through your idea and have everything in check before looking for funds. You have to be the best to get anyone’s attention in this era. Ask yourself, what is the difference between your idea and others? If you can convince people why your idea is the best and unique, you can as well succeed in getting capital.