How to attract financing for your business idea

(NC) If you have ambitions of leaving your current career behind to fuel your entrepreneurial spirit, you’ll likely need some help funding your next move. To get investors on your side and show them you mean business, follow these steps:

1. Create a business plan. You have an amazing idea, but to turn it into something more, you’ll need to do your research and create a business plan that includes a realistic budget and intellectual property (IP) strategy. You’ll also want to do some research on your target audience and projected revenue and expenses based on market conditions. Some great sources for information are government stats, industry associations and local chambers of commerce.
2. Protect your idea. Before you start promoting your innovation to anyone who will listen, take steps to legally protect it from potential competitors. Speak with an intellectual property (IP) professional about getting relevant IP protection for your brand, invention or other intangible assets to give your business a competitive advantage over other players in the market.
3. Research potential investors. Do your homework on people you are thinking of approaching to invest in your business to make sure you don’t waste their (and your) time. Find out if their interests and beliefs match up with yours so you can propose something that fits. And do some digging to see what kinds of companies and ideas they’ve invested in before, as this can be a good predictor of whether they’ll find your idea attractive.
4. Use social media. In today’s digital world, a strong social media presence is essential for new businesses. You can be sure potential investors — and down the road, potential customers — will want to check you out online to get to know you and your offerings better. Plus, a positive social media presence is a major asset when reaching out to potential investors online, whether it’s through LinkedIn, Facebook or Instagram.
5. Practice your pitch. It can be daunting summarizing your well-thought-out business idea and asking people for money, so craft an engaging elevator pitch that you can deliver in under five minutes and practice it as much as you can. Share it with friends and family so you can feel comfortable and prepared when bringing it to investors.

Find more information on intellectual property protection at canada.ca/ip-for-business.