Entrepreneurs in Georgia must learn how to work with investors. To prevent mistakes that discourage potential funders, it is a good idea to start with tactics to avoid. This knowledge can strengthen a pitch and help secure the investment. Entrepreneur reported on the different things a person might fail to do that could turn away an investor. These things include attempting to start without a solid team, a business plan, or proof that the company can turn a profit. In addition, being unable to produce a unique angle, a solid marketing plan and an understanding of the industry makes a company look weak to lenders.
Business owners must first identify the right type of investor. This person typically operates in the same industry and has expertise in the product or service, which allows him or her to correctly assess the chances the new company will have. An investor is unlikely to sink money into something he or she knows nothing about.
Contacting the wrong people for money can be a time-consuming mistake. However, even when approaching the right type of investors, Forbes notes that it is common for entrepreneurs to receive many denials. To expedite the process, there are resources that are growing in popularity. For example, crowdfunding sites have become a source of success for many business owners. Other options include angel networks, startup launch platforms and professional social network sites. There is also the Small Business Administration, which not only helps with securing funding, but also offers a plethora of other information to assist a new business owner.