How to find investors for your business ?

Home / Business Lifestyle / How to find investors for your business ?

Most entrepreneurs who have big ideas simply don’t have access to the kind of money it takes to realise their business dreams. Most of us would advise to enter in the professional investor community. But, in order to get investors to open up their checkbooks, you’ll need to convince them that your idea is worthy and also be willing to subject yourself to increased scrutiny and give up a percentage of your company.

That’s why it’s a good idea to first ask yourself whether you really need a professional investor at all. If you decide your business can’t move on to the next level without the aid of a professional investor you will need to define some steps where to do and where to look for them.

First of all, before you even start looking for investors you need to write a good business plan. Investors need to see that you’ve carefully thought about your idea and that you have realistic goals.

Your business plan should present your business in detail, including a full description of your company and how it fits into the market now and in the future. Additionally, you need to present your finances through your business plan, including how much money you need and how you plan to repay it.

Next step is networking. Getting to know others in your field will help you to locate investors that might be interested in your business. Small business owners may be a good place to start, but contacting professional and trade associations for your particular sector will lead to a greater chance of locating interested investors.

One of the great things that entrepreneurs often oversight is joining websites where investors can find you. These websites are a relativity something new and you have all kind of them, you just need to look for your target market. However, the best ones allow entrepreneurs to post funding requests and allow investors to contact those requests that match their investment goals.

At the end I would suggest that you explore venture capital firms. If you have demonstrated success in business and have an idea for either a new business or a change to an existing one that is likely to generate large returns, this can be a good option. Many of these firms are looking for investments that can create 5-15x return. Often, they are more interested in small businesses that can blossom into IPOs or that may be attractive buyouts for larger companies.

Also if you want to share your experience and tips for finding suitable investors please write them in the comment below.

 

If you want to stay in touch please sign up for our newsletter.

Related Posts