How to Find Small Business Investors
Finding funding for your small business can be a bit more than challenging, especially in rough economic times or if your business venture is nontraditional. However, there are many individuals who enjoy investing in local small businesses where they see opportunity for profit and mentoring of someone who is taking a journey they have already traveled. Knowing how to find small business investors is the key to starting your dream.
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Things You'll Need
- Business plan
- Summary page
- Business organization membership
- Business associates
- Proposal letter
Instructions
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Create a detailed business plan and a one-page summary of the plan that outlines your reasons for requesting investors and terms for paying back the loans. It is essential to have this information in hand before a potential investor crosses your path. This will make you appear professional and inform investors that you have the fortitude to be successful with their backing.
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Seek investors from people you already know. Contact business associates, family members and friends who are familiar with your work. You have a better chance of finding funding from people who know you, especially when your small business venture is nontraditional.
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Network with other successful business owners in your area. Join business organizations and become a regular at meetings. Let it be known that you are starting a small business and seeking investors.
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Pitch your idea to a local investment firm or group. Local investors will be more likely to fund someone whose future success will benefit the community.
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Send a letter to potential investors outlining your business idea and reasons for seeking funding. If you don't know the investor personally, mention that they were referred by someone you both know. This may make them more inclined to take your request seriously.
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References
- Photo Credit investment image by Kit Wai Chan from Fotolia.com
