Starting a business can be an exciting opportunity and a potentially rewarding experience, but it can also be extremely challenging. Starting a business may require a lot of resources, both financially and through building relationships. Today, we will discuss some ways you can start building your network as a new founder and find mentors to support you in your new journey.

Building Your Network

Start Small

It can be important to first remember to start small. As a new founder, focusing on your current network may be your biggest asset and can be beneficial when looking for potential investors. Consider talking to your peers in your current network about referrals and introductions to people who may be outside your network. The people closest to you could end up being influential in your journey to funding your startup and scaling your business.

Identify Your Values

Helping to identify your values involves a deep reflection on what drives you and your vision for the company. You can consider your personal beliefs, ethical standards, and long-term goals. Think about what you might want your company culture to look like, how you want to impact your industry, and what principles you are unwilling to compromise on. You could align your values with your business mission to help guide your decision-making processes. Clearly articulating these values can not only help you stay true to your vision but also help attract investors who may share your principles and support your long-term goals.

Research Potential Investors

Consider doing some research to help find potential investors. Utilizing online platforms like LinkedIn, AngelList, and Crunchbase can be helpful in this search to find investors who may take interest in your business, or even other investors who could be interested in diversifying their portfolio.

Research Potential Mentors

Similarly to finding investors for your startup, finding mentors can also be important. Utilizing online platforms such as LinkedIn and finding industry-specific forums can help you identify experienced professionals who have a background relevant to your field. You may want to look for individuals who have a history of mentoring startups or who share insights and advice publicly. By researching their professional histories, areas of expertise, and involvement in mentoring, you may identify potential mentors who align with your startup’s goals and values.

Connect and Communicate

Online platforms and communities can be another tool to build a network of investors by allowing access to a wider and more diverse pool of potential funders. You can use platforms to research and reach out to potential investors who match your criteria and preferences. You can also join communities to learn from other entrepreneurs, get exposure, and find opportunities like partnerships, investments, and mentors. Be active, be respectful, and be genuine.

Evaluate

After initiating conversations with potential investors, it can be crucial to evaluate their fit beyond financial contributions. Assess how their expertise, network, and involvement style may align with your startup’s growth needs. It can be important to have open discussions about expectations, terms, and how they envision their role in your venture.

Maintain Relationships

Securing investment could just be the beginning. Maintaining a healthy, ongoing relationship with your investors can be key. Consider keeping them updated on your progress, challenges, and milestones through regular updates and meetings. This transparency may foster trust and can lead to further support, be it additional funding, mentorship, or networking opportunities. It can also be beneficial for you because you can get constructive criticism from people you have these relationships with. Even if your startup is not a fit for their portfolio and investment goals, their feedback on how to improve for others can be extremely helpful.

Managing Expectations

Setting realistic expectations can be crucial for new founders as they are building their network and seeking investors. Unrealistic expectations could lead to frustration and disappointment, while a grounded approach may foster perseverance and resilience. Here are some things to keep in mind as a new founder to help avoid frustration and disappointment:

• Time Commitment: Building meaningful relationships takes time, so be prepared for a process that could take months or years. Investors and mentors may want to see consistent progress and commitment before making an investment decision.
• Initial Rejections: Rejection is a common part of the process, so consider using each interaction as a learning opportunity to refine your approach. Many founders faced rejection before finding the right fit, so it is okay to keep trying.
• Mentorship Availability: Mentors can be very busy professionals who may not have a lot of availability, so be respectful of their time and learn as much as you can from them.
• Progress Speed: Growth is not always rapid, sometimes it can be slow. It can be important to keep in mind that every business is different. Avoid comparing personal business growth with other companies.
• Investor and Mentor Compatibility: Finding the right mentors can be beneficial to your overall business growth, remember that not every investor will align with your values and mission. Consider prioritizing the mentors and investors who understand and support your long-term goals.

Where Do I Find Mentors?

Cold Outreach

Although it may feel daunting to reach out to people as a new founder, it can be important to remember that cold outreach like cold calls and cold emails can be a great opportunity to make connections with people. These individuals may connect you with potential investors or  financially contribute to your startup themselves, whether now or in the future. Craft a compelling and personalized message that clearly explains who you are, what your startup does, and why you are reaching out to them specifically. Be respectful of their time by keeping the communication brief and to the point, and always include a clear call to action, such as requesting a meeting or asking for advice. Successful cold outreach can open doors to valuable relationships and opportunities that might not have been accessible otherwise.

Networking Events

One effective strategy to help identify investors is to actively participate in industry events and conferences. These settings provide an environment for networking, allowing direct interactions with potential investors. By authentically presenting your startup and its values at these events, you may attract investors who genuinely share or respect your vision.

Accelerator and Incubator Programs

Consider joining a respected entrepreneur group that caters to helping startups get off the ground, from giving your pitch, to necessary services like legal or accounting/bookkeeping. Accelerator and incubator programs can be great for building your own personal and professional confidence and growing your network. These programs can also provide access to capital that you may not have had access to otherwise, whether it be during or after these programs. Making connections with people in these programs can give founders access to different groups of investors and mentors.

Key Considerations

Effective communication and genuine engagement with online platforms and communities can further expand your network, while careful evaluation may provide alignment with investors who share your vision. Maintaining these relationships and continuously seeking mentorship through cold calls, networking events, and accelerator programs can provide ongoing support and guidance. With these strategies, you may be able to navigate the challenges that come your way as a new founder.

Final Thoughts

Starting a business is a multifaceted journey that may demand both strategic planning and the ability to build meaningful relationships. By starting with your immediate network, identifying your values, and conducting thorough research on potential investors, you may be able to create a strong foundation for your startup.

Want to learn more about tips for investing? Check out the following MicroVentures blogs to learn more:

• Securing Support: Mastering Startup Pitching
• The Role of Incubators and Accelerators
• Preparing to Pitch
• Best Startup Events for Entrepreneurs
• Navigating the World of Venture Capital: A Beginner’s Guide

Is your startup ready to raise capital?  Apply today to raise funding with MicroVentures!

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The information presented here is for general informational purposes only and is not intended to be, nor should it be construed or used as, comprehensive offering documentation for any security, investment, tax or legal advice, a recommendation, or an offer to sell, or a solicitation of an offer to buy, an interest, directly or indirectly, in any company. Investing in both early-stage and later-stage companies carries a high degree of risk. A loss of an investor’s entire investment is possible, and no profit may be realized. Investors should be aware that these types of investments are illiquid and should anticipate holding until an exit occurs.