How to Get Investors Interested in Your Company
New business owners launching their companies can finance their initial start-up costs by applying for a private business bank loan or government or community grant. They also can pitch their business plans to potential investors. Typically, new business owners must find venture capitalists willing to invest in their companies in exchange for a share of their profits. The U.S. Small Business Administration (SBA) is a good place to start looking for venture capital groups. Investors typically require formal business plans from new business owners before they can make a decision about investing.
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Instructions
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Draft a business plan. Your business plan should present a comprehensive overview of your business goals, marketing strategies, potential customers, time frame for when your business will break even and become profitable and amount of money you will need before you can generate a profit. Your business plan also should identify your existing competitors.
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Develop your mission statement. Investors need to have an idea of where your company will be in a few years. Related to a mission statement is your company's goals and objectives. Clearly define those, as well.
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Consider locating your business in a low-income area to stimulate the local economy and job market. Investors, such as the New Markets Venture Capital Companies, often are more willing to provide capital to entrepreneurs willing to help local community members.
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Develop a presentation. You do not need to develop a graphic or visual presentation, but you should be able to provide prospective investors with at least a graphic depiction of your business location, since some of them will not be local.
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Draft a speech or oral presentation. Investors typically require more than just a new business owner's business plan and mission statement. They often ask for more details. Those willing to invest a significant sum of money are more comfortable expending capital with a professional presentation, business plan and business speech.
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Tips & Warnings
Venture capital groups are a great way to find initial funding, but business owners also should consider obtaining small business loans to help them start and grow their businesses. The SBA participates in several financing programs to help business owners, including those who are unable to obtain traditional loans. With business loans, although banks charge interest, business owners are not required to split their profits, as they would do normally with venture capitalists.
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As the President and Founder of African Rapid Response Initiative for Sustainable Economy (ARRISE), I demand to see my country Nigeria, and indeed all African people live up to standard in every area of life. we can not countinue in our old system of life, is time to make a change in Africa, and that is my calling, Africa needs sincere and rich investors who would be able to see the opportunities in these virgin continent of ours. yes we can.
