Yesterday I attended MobileMonday Yangon event. There I got chance to hear from an old man, who is investor of Blink Marketing Agency in Myanmar, how to get money from investor. What he said is every simple. Let me share you back.
Don’t write your business plan too long.
He said investors don’t want to read very long paper. Startups and entrepreneurs don’t need to write very long about their business plan. Investor only want to check short-to-the-point facts first. After only they like it, they think of investing. Business angels and most investors are going to take risk. If you can attract them only by a paper, they will take a risk by investing on you.
Don’t have too big expectation on your business
Some startups said their business or products will cover for all population in the country. Their customers must be everybody. Actually the facts are not investors are not exciting about. They don’t believe you can do it. They don’t believe you can make it happen. Just show that you can serve for selected customers. For example, your product may only be for people who live in Yangon or anywhere else. Or your product is for college students. You must have target customers. You cannot sell to everybody. You are a startup. The higher your target, the more money you need. So investors won’t invest on you.
The amount should be about 300,000 USD
The investors won’t spend more than 300,000 USD in initial period. If the initial investment you need to run your business is more than 300,000 USD, investors will not take risk. You business plan must not spend money carelessly. You need to show by exact information where you are going to spend.
Prove for sustainability
Sustainability is one of the facts investors usually check. For example, they will ask you your next target of after three months, of after six months, etc. You cannot say easily you will hire somebody else to do a task. You need to prove them how you will get someone. Your business plan may be one year-long or two years long. You need to show your investors your monthly target or six months target. It is the best if you can show your business timeline. If they see that your business is sustainable for the time you told in the plan, they will like you.
Author: Aung Kham