How to Find Investors for a Business Concept
A good concept for a business is the starting point for becoming your own boss and being in control of your financial future, but a concept needs to be developed and brought to fruition. Turning a business concept into a business reality takes money. What happens when you have the ideas but not the funding to bring your business concept to life? You need to pitch your concept to someone who has the money to back your business. Plenty of people and organizations are willing to invest capital in a promising business venture. Learn how you can find investors to help turn your business concept into a profit-earning reality.
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Instructions
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Outline your business concept. Whatever your business concept is, write up a business plan that includes start-up costs, the potential customer base and the long-term goals. You will need this information when you approach potential investors.
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Draw up a contract that states what your investors will get out of the business for their money. Are you offering a partnership, by which the investor will receive a higher percentage of the profits, or are you offering a percentage of return on the investment? If you're offering a percentage of return on investment, be sure to outline a time frame for the return on investment.
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Show that you have the potential to operate the business you are pitching. Investors want to know that you can make the business concept work and that you will be responsible for the operations side. Since investors are simply there to provide the money, you will need to display the ability to hold up your end of the deal. A strong resume detailing any experience you have related to your business idea is a good way to do this.
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Look for business-appropriate investors. If you have a concept for a medical business, you might consider approaching medical doctors with your idea. If you feel strongly that your business can be successful and you can convince someone with money who happens to be in a related field, you stand a good chance of finding a potential investor there.
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Consider using online resources that specialize in partnering start-up business owners with investors (see Resources below). These organizations offer you a platform to present your concepts to individuals and organizations that have the money to back your business concept.
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