How to Find an Investor for Your Business
Finding an investor for your business offers you the chance to seed more money that you need to run a business. As a return for investing into your business, most investors obtain a percentage on the stock or sale of the company.
Even though finding investor for business may sound a bit difficult, there are some effective means on how you can convince and locate the investors to invest in your company.
Before you look for prospect investors, it is very important to write an effective business plan first. As you know, business plan is a guide that can help you formulate important aspects of business like starting cost, sales forecast, expenses as well as other data that can attract the investor to invest in your business.
List of Investor
After making your business plan, the next thing to do is to create a list or potential investors. Include the names of people whom you know who have money for investing and willing to take risk to help you start your business. Family members, friends, colleagues or business owners of similar business are the best areas for you to start. For an instance, if your business is all about computer software then you can include other software companies that may be attracted to invest to your bubbling business.
The next thing that you need to do is to locate business investors on their website. There is wide-array of websites like this, wherein business owners can able to reach an investor via the internet. They can be called as angel networks. This is the best option in case you don’t have some people you know personally that could invest. These networks are the best means to find investors online.
Make a Presentation
In order for your possible investor to be interested with your business, it is very important to make an impressive presentation. Make a pitch or speech that explains your business completely. Make sure to include the presentation that include the services or product that your business offers. It is also important to include the cost that is associated in your new business. In this presentation you must include all the important aspects of a business. In this even you need to contact them and set a schedule for meeting.
During the meeting, you need to present all your ideas. Aside from the presentation, prepare some copies of your presentation, so that they can read it and decide whether they will approve it or not. Make sure to answer their question effectively, which means you need to know everything about your business for you to be articulate in front of them.
After agreeing the terms and conditions of investing on your business, there should be a paper or document that will able to support that agreement. Make a contract that both of your and your investor clearly understand and signed.