How Can I Find Investors for My Business?
Find investors for your business
Most people think that it’s the toughest part of the work to find investors for their business, but in reality, if you have a great business idea and location, finding an investor is not hard. The real challenge comes with figuring out which investors are a good match for your business. When choosing an investor, you will need someone who either works in the same field or has a deep understanding of how your business works so that they can share their wisdom during the entire period that your business will be developing. So, if as a Business Broker, you are wondering, how can I find investors for my business, here are some tips for success.
A Business Broker always has a robust business strategy
There is one thing that every investor is looking for in a startup venture that they decide to put their money into, the feasibility of the business idea. They want to know that the business will not crash within the first six months and leave them with losses to mitigate. When you are setting out your business strategy, you have to think clearly and consider all the things which could possibly go wrong. Integrate solutions into all these possible problems in your business strategy and make sure that you have a long-term plan for the success of the business. If you are venturing into a field that you haven’t been in before, do thorough research and get all the facts and figures right because there is nothing that leads to investors losing confidence in an investor faster than discovering that you haven’t done your homework.
A Business Broker knows the best places to locate business investors
When you have your business plan and location, the next step is figuring out the best places where you can meet the potential investors. As mentioned, the quality of the investors matters a lot and so, you have to be keen on where you network. Here are a few of the places that you might want to consider looking for investors from:
- Through top-tier business schools: Try and call the closest university to you that has a great business program. These schools usually have very successful business people in their network of alumni. Ask them if they are in a position to point you in the right direction.
- Scrutinize your industry friends: the second place where you will get great leads when it comes to locating investors is through industry friends. When you have social gatherings, speak a little into your business idea and see whether there are some that will take interest. If they cannot personally invest in the business, they could point you in the direction of a person that can.
- Online: this is one of the new best places to locate business investors. The first way that you can find investors is through crowdfunding. When setting up the account describe the business idea in details and then share the vision through social media to see the reaction that it will get. Then, you can directly use social networking sites such as LinkedIn to see whether your business idea will get investors. Other places that you can look include AngelList.
- Angel investor networks: this is another great place to look to find investors for your business. The networks are usually operated from a fund that has been set aside by an investment firm with the aim of getting creative and useful business ideas. When you make an application, it will be screened and when it meets their requirements threshold, you will get investors who retain their anonymity. If the idea is great, you might even find yourself getting more than ten investors.
- Local entrepreneurial community: If you are feeling really strong about the business idea that you have, you need to interact more with like-minded individuals in your community. This means joining regional startup groups through their social networks and even meeting up with them whenever they have events and conferences. As you continue interacting with them, you will learn more about polishing a business idea and eventually share it with them and get the investors you need.
- Accelerator programs: these are designed and run by investment companies, seed firms and universities among other established entities. The programs are located all over the country and are always ready to accept new and innovative business ideas. When you apply to these programs, you will meet other founders and learn a great deal about business ideas and real-world guidance on how to survive the business environment. They will even help you smooth out the areas which may not be ready.
Pitching the business idea properly
The biggest problem that most people have when looking for investors is not poor-quality business ideas but rather, the fact that they are not able to articulate their business vision properly to prospective investors. Before you start going out there to talk to investors, have an internal quality assessment of your pitch and have some people give you honest feedback about it. You can even take it a notch higher and try pitching the business idea to people that you aren’t acquainted with and then see if they understand the business idea and why it is brilliant. It is important to understand that you can be a very good business idea innovator but without the eloquence needed to make others see your business vision. If this is the case, you can get people who are good at the art to speak to your potential investors together with you.
Those are just a few of the important things that you need to know about the process of getting the right people to invest in a business. The most important factor which you need to think in business investment is looking at the business idea from the perspective of the buyer as opposed to your point of view as the seller. When you learn to criticize your own business idea before taking it to any other person, you will have learned how to rectify the loopholes which lead to lack of interested investors.