Do you need investors to finance your business ideas or expand your business? Finding investors is the way of doing it.
In my last article, why you need investors in your business, I’ve outlined the three important things investors can add to your business. Investors can either invest in an existing business or a business in the idea stage.
The question in the mind of most entrepreneurs is how to find investors for their business? Keep reading and you’ll find how. Finding investors can really be a matter of networking and may take some time to achieve it.
Intelligent Investors don’t just invest in a business unless they’re convinced beyond doubt that the business has fundamentals and strategy for success in the future. Investors need to see a certain thing in your business plan for them to invest in your business.
Three ways to find investors for your business
If you have an idea of a business or have an existing business and require investors to invest in it, I offer the three ways to find investors for your business.
1. Family and friends
Probably the first point of call. Who will listen to you if not your family and friends? Family and friends might give you money or working capital irrespective of knowing how the business will work or the business fundamentals.
They probably will provide the working capital with no string attach. For instance, you can only pay back the money without any interest or percentage share of the business. Families and friends mostly want to support your dream business.
2. Equity financing
Equity financing is essentially the sale of ownership interest to raise funds for the business. In other words, you raise capital in exchange for a certain percentage ownership of the business.
Depending on the business, the money can be raised publicly on the stock exchange or use private individuals who can be friends, business investors or even family members.
3. Joint venture
Many successful businesses begin as a joint venture business. This joint venture brings in two things.
You have money and as well as fresh ideas. A business investor can decide to be your partner by providing the money in exchange to be a part of the business.