Convincing investors, maybe it's time

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You need money to get customers

You need customers to get money

A catch-22 this may be, but it’s worth making an effort to acquire customers or users before you approach an investor, rather than seeking funds first and customers second. “Make a plan to get your first customer that doesn’t depend on huge outside investment,” says John Rood of Next Step Test Preparation.

Why is this so important? “Particularly if you are a first-time entrepreneur, it will be much easier to get investments on good terms (particularly from non-institutional investors) if you have some traction first,” he explains.

Investors want proof that your idea is going to work, and nothing proves this better than having real, paying customers.

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