Anyone starting a new business will inevitably have to look for money and capital to cover their costs in the initial stages. These resources are usually difficult to access and charge a high price. Only the small ones create, the big ones just choose from the costly and complicated procedures finished created products. The selection process is very simple. Each investor has an imaginary line in their head, this line is different for everyone, but they show similarities for certain groups of investors according to the given order of magnitude. The larger an investor, the higher the level and will only deal with those who have struggled above the line. Only those blades of grass that are beyond its horizon are of interest, so the more serious an investor has to focus on, the fewer blades of grass and thus his choices are narrower but also more promising, only those who have already reached a certain stage on their own.
1. You can't understand everything, no matter how much you want to:
The more potential sources a brainstormer comes into contact with within the initial phase, the more obvious it becomes to him or her that he or she cannot just keep his or her product to himself or herself. In return for support, investors always ask for a big slice of cake. The sentence will sound the same in all cases. Let’s make a joint venture of which 35% is my property, you put your invention into the company, I put my money in it, you work in it, and we distribute the profits in the right way. Of course, for 35%, they are also asked to have a say in the processes, in the best case they may provide professionals to help with the project, but the most important thing is that they only invest in something where they see the determined, unwavering implementation intent.
2. Already looking, you just let them find:
Luckily for me, I had an investor acquaintance with whom I was in close friendship. He told me a lot about the attitude of people like him. Money is looking for the idea said several times and 95% of all businesses have the idea itself. Of course, during the business agreement, each investor will try to downplay the significance of the idea, no matter how aware or real it may be.
3. It’s always more fun to spend your other money:
One can also try to obtain the capital needed for the implementation through a tender, which ensures greater independence. However, you can only do this if you have a good application writer who already has an extra cost and if you have your own mobilizable financial resources because unfortunately this has to be funded and in the vast majority of cases you have to invest to win the application.
4. Read everything on the topic so that you can forget it all later:
At first, of course, I also read, searched, went through a lot of things, tried to understand, learn what I could. It’s become clear that I don’t understand most things, and you guessed it correctly, I don’t even want to understand. I never wanted to be a trader or a marketer because then I would have been. These are independent professions, not everyone can understand them. One of the best tips I’ve got is to look for a professional who is at least as good at economic and commercial life as you are in your field, share your problems with him, and write a success story with half the energy of the two of you. My colleague, Juli helped me with this.
I kept dreaming while she pulled me back to the ground by my feet and has been doing since. The difficulty is that people like her don’t just run around the world, it’s hard to find them and usually, someone has already got them and hires them for very large sums.
5. Even if money doesn't make you happy, but at least you can talk to smart money:
The next source that might come up is smart money. The smart money has the property, as its name suggests, that it is not just about money, but about the lobbying value and expertise that the holder of money makes available along with the material ones. Of course, the smart money is worth far more than money alone. He who only gives money does not want to work, he likes to have someone else work with his capital. Smart money, on the other hand, works and helps.
6. I met the money yesterday, we didn't see each other for a long time, we talked, but he had to run:
A lot of time and energy can be sacrificed to make smart money. It usually turns out that you are smart enough when you are already working with it because it is not very possible to get information before that. And there may come a moment when the limitations of the qualities of the available specialist become apparent, which is unfortunate.
7. This sounds great so far, but I like my own version better:
Keep the possibility of making a mistake and its ode, so let as little say in your business as possible. Listen to the advice, make the decisions yourself, don’t let them decide over your head. When developing a business, campaign, or marketing strategy, try not to stay mediocre! Anything out of the ordinary has a better chance of success than any of the many optimized, routine routes. Don’t be like anyone else, don’t line up! So, you need to look for the type of investor who has smart money and is less involved in the way things go but provides you with the advice you may need in areas you don’t understand.
8. The most important and first criterion for starting a company is to know who you are going to sell the whole company to when the time comes:
The business plan you should develop in this case is to sell your products as quickly and in as many numbers as possible, with as much publicity as possible. If you are lucky and have shown yourself well enough in the world, you have the opportunity for a large investor to buy your whole idea from you, not just your invention or manufactured pieces, but even your patent rights. But first, you have to get to the point where you become one of the blades of grass that have grown tall enough.
After talking to lots and lots of investors, the most promising for me was the community funding interfaces, because these interfaces strike a fairly large amount of publicity around the product in a fairly short time, creating the opportunity to grow a blade of grass quickly in a business space, where it is already worthwhile to start negotiations, where they have little involvement in the activities and rather only provide advice. Also, this way you can access a test interface that you would find very difficult to create with your own funding.
I found only one businessman with whom I would have loved to do this project, but unfortunately, he left in the meantime, he died. So, as a second option, Plan B, I decided on crowdfunding, but I will talk about this in the next chapter.