Finding the right investors for your startup

One of the most frustrating things about creating a startup is finding the proper amount of funding you need to get your business off the ground. It doesn’t matter how good your idea is, if you don’t have the money to promote it or create any inventory, then you’re stuck with nothing more than just a good idea. Money may not buy happiness, but it certainly gets you well on the way to building a profitable business. That’s why finding the right investor for your business is a delicate balance of asking for money and demonstrating that their investment will actually produce tangible results. Family and friends If you have family or friends that are able to loan you some principle then your best bet to get started is by asking them. The danger of course is that by involving money in your everyday relationships, the opportunity for tension and drama is possible. So, when asking for money from family or friends, don’t show up looking for a handout, or by promising that your idea/startup will get them rich quick. Demonstrate how you expect to generate a real source of income from their investment and how long it may take for you to pay them back. Treat their money as a serious investment in you and your business, and you’re much more likely to see positive results. Your friends want to help you, give them a good reason to by having a convincing business plan. Local Business Community If family and friends are unable to help, then look towards your local business community. People in business are always on the lookout for prime investing opportunities, and the more you network your idea and business, the more likely it is you’ll find someone willing to invest in you. Looking for people to invest in this category will require much more research on your part. Approach those people within your business community who will be helped most by your new business and who won’t be considered in any way competition. Show how your new business will help their business or make their everyday life more enjoyable. The more information you can present to your investors the better. Bank loans and Angel Investors With bank loans and angel investors, you’ll need to have some proof of concept, demonstrable income and decent volume before they’ll take a look at investing with you. Show the banks and angel investors that your business has the potential to become much more profitable with a scaled up operation. The more you’re able to demonstrate that your product makes money (or will make money), the more likely you’ll find people to invest with you. Finding the right investor means more than just finding someone who will give you money. It also means finding people who will trust you to use that money efficiently. You don’t want to have people constantly nitpicking how you do business just because they loaned you money. It’s just as important that you find the right person to loan you money as it is finding the money in the first place. Keep your eyes open, research constantly and you’ll soon find the perfect investor for your business!
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