If you are looking forward to opening a music shop, and you are looking for potential investors, you should go for an investor who doubles up as a partner. Your ideal investor is somebody who stands to benefit directly from the venture. Partnering with a band or a reputable local artist would be a great first step. A musician will be inclined to fund a music shop because it creates an avenue for selling albums. It is easier to find a musician to invest in your music shop because musicians are passionate about the arts. Banking on the sentimental value your shop carries is a great selling point.
Before looking for somebody to invest in your music shop, it is advisable to start the business alone. This will give you ample time to access the viability of your idea and establish whether it is a profitable venture. Investors are more likely to work with an entrepreneur who has practical experience as opposed to an idea on paper. Tracking your progress through keeping a detailed account of all transactions will help in selling your music shop to potential investors. By bringing results in the form of concrete numbers from sales, investors will view your business as a proven idea.
When starting your music shop, you can opt to have a co-owner. Going into business with another person shows your ability to work with other people. Investors are likely to trust an entrepreneur who finds it easy to work with another person. The fact that you are running a business with a co-owner successfully portrays you as a reliable partner that they can trust with their money. Joint ownership offers the assurance that the business will be operational even in your absence. A structured way of operating is a great selling point to hook potential investors.
Approaching investors requires tact to convince them to invest in your music shop. In your pitch, you have to address all their worries to show that you are in touch with reality. Addressing investor concerns shows that the idea is well-thought-out and has been researched in detail. To win your investors over, you have to show them what they stand to make from the investment. By promising a return on investment, investors can view your venture as a potential venture they should invest their money in. Banking on sentiment alone will not work with investors since they require concrete numbers as an assurance of profitability.