Seeking Investors for Small Business
There are many places to look for potential investors for your business. One good place to start is a local Angel Investor Group, where you can get valuable advice and develop connections that might refer you to other private investors who could have an interest in your company. Service providers such as start-up consultants, attorneys and accountants are also excellent sources of introductions to potential investors. But before you contact any investors, you should have a fully prepared professional-quality presentation ready to hand out.
- Difficulty:
- Moderately Challenging
Instructions
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Prepare Your Presentation
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1
Write a business plan that fully explains your business model, your product or service, your marketing model, and your financial projections.
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2
Write a two- or three-page executive summary that lists the highlights of your business plan. This is what you will send out to potential investors to solicit their interest in learning more about your company.
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3
Use Power Point to create a presentation explaining investment opportunities to investor groups. Many Angel Investor Groups have preferred formats, so make sure you check those out before you present.
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4
Put together a Due Diligence Book that contains your corporate legal papers, tax returns, all your employee contracts, leases, equipment purchase receipts, bank statements, patent and trademark information, and anything else an investor will want to see prior to deciding to write the check.
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5
Practice your elevator pitch and investor presentation until you can at a moment's notice confidently speak about your company and why it is an excellent investment opportunity.
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1
Tips & Warnings
Remember that all investors are more interested in what the investment in your company will do for them rather than what it will do for you. They may have a business that can benefit from synergistic association with your company, or they may just be looking for a good investment that will provide an attractive rate of return.
Never hype your business or make promises you cannot be sure you will keep, and do not guarantee you will make your investors rich. Always listen carefully to feedback you receive from potential investors, and be willing to accept criticism and to follow advice. Above all, make sure you look and behave like a responsible and reliable professional when you are presenting to potential investors. Their decision depends on what they think of you as much as what they think of your business idea.
