The vast majority of entrepreneur projects face a common problem: getting finances.

Attracting capital is one of the most complicated tasks because even though the ideas themselves can be attractive and offer great possibilities for commercial success, convincing the venture capital firms of this is a great challenge that many cannot overcome. I had the chance to speak with Pranav Arora, a reputable venture capitalist, has been working as the Chairman of Just Funky Foundation for several years. He is also the Chairman of the BoD of JMTD Holdings, an private equity firm focusing in acquiring and investing in ecommerce businesses. Having invested in several businesses, Pranav knows just what entrepreneurs need to attract capital to their company.

Here are a few basic tips that can make the process of attracting capital to your venture less complicated. With these tips, you can eliminate very simple errors that most companies make when pitching their idea to venture capitalists.

Investigate investors and similar ventures

One of the basic tips is to know which company, investment fund or even financial institution may be interested in the project. This is basic, since not all those who can contribute seed capital are betting on the specific sector and might not even be interested in your venture.

Thus, the ideal is to make an analysis of what type of investor would be interested in the project, know how many venture capital funds are supporting similar work with the specific characteristics that are being contemplated and focus on presenting initial proposals as well as you can.

Another point to attract capital to your venture is to know if the investor has already supported a similar project and if it is a direct competition of the ones you are developing.

Eliminate all doubt and negative response for investors

Another very useful advice is to make a very detailed analysis of the project and determine the strengths and weaknesses that can become allies or enemies when it comes to presenting the business plan.

The project will go through many exhaustive reviews, with very intense controls and any doubt that may arise for investors who do not find solid and convincing answers will be factors that play against the project.

For many experts, the basic questions planted by investors are: Will it work? Can I make a profit? And is it worth it? However, you must take care of these details, however minimal it may seem and eliminate all traces of doubt, so you must be prepared to answer any type of question, from the questions about the product or service to the market projections.

This streamlines processes, increases investor confidence and finally gives added value to the product, since not only is a solid project being presented, but it also speaks of the degree of commitment and the high level of professionalism of the people who make it.

At the end of the day, it’s all about presenting something that helps solve a problem. If you offer quality products to an investor, they are going to pounce on it!