Are you planning to form starting your new small business? Here are our best 5 ways to find investors for small business, they can invest in your small business.
Kickstarting a small business is an exciting time. However, consider that startup funds don’t have to come from you, the business owner, or through a regular bank loan. Because all business needs sufficient capital to reach the next level and grow.
There are ways to take some of the stress out of your finances, either through investors who make money only when the company turns a profit or by taking out loans with low-interest rates.
Top 8 ways to find investors for small business
Here are listed our easiest ways to find investors for your small business or startup companies.
1. Go Online And Find Investors for Small Business
The virtual world has made us connect for good. The online universe has everything you could possibly ask for. They have startup launch platforms, crowdfunding sites, and are very popular with experienced and verified individual investors, angel investors, and even banks and people willing to put capital in new streams.
Most of these platforms operate in a peer-to-peer lending site fashion, looking to source business loans to donation-based, loan, and equity crowdfunding portals. Popular equity-based crowdfunding platforms are AngelList, StartEngine, SeedInvest, etc. Even LinkedIn, Quora can help you, you just need to get a credible name.
2. Research And Make A List
Go online and make a list of your immediate contacts to network with, and create a list of investors who you think will resonate with your goals and mission. Shortlist 30 to 50 of these and aim to capture their attention. Reach out to them in an informal environment, reveal your ideas, ask for genuine feedback, and always use those suggestions the next time you contact them.
3. Attend Events
Visibility is an important aspect when it comes to getting funding, you need to be the first choice of the investors you are aiming for. You should be on their mind when they make their decision. Prior research about the event’s guests and organizing meetings with potential investors will go a long way.
Attend coding marathons, organized networking functions, industry trade shows, charity fundraisers, sporting events, film festivals, and more.
4. Angel Networks
Member-based networks that provide service based on location are called angel networks. They generally operate from a fund that has been set aside by an investment firm to source deals for the network.
Applications are predefined, angels can remain anonymous, and founders can collect proposals from a hundred investors in one place instead of going from angel to angel.
These angel investors can not only invest in your business but also provide you with full mentorship, share your contacts, and help you build your network. Sites such as Funded.com, and Angel Capital Association can help you with angel investors in looking for opportunities.
5. Believe in Accelerators
Accelerators are incubators for startups, they help startups on the path to success. They open their doors to serious entrepreneurs looking for genuine guidance and mentorship. They’ll be ready to introduce you to other investors and give business advice.
Generally, when applying for accelerator programs, you should do extensive research and check their track record of success.
These investors want to play a big role in turning your idea into a viable business model, most likely looking for a piece of your startup in exchange for funding. So, before collaborating with them, you may need to analyze how much you are willing to sacrifice.
6. Social Media And Networking Sites
Believe it or not, social space can do wonders, being cost-effective, it can be the best way to get discovered. You can post or update about your development or collaborate with influencers to boost you.
The most popular channels that drive attention on social media are:
LinkedIn can be used to get quality introductions to talk about your company or pass social proof.
Facebook maintains cordial contact with the investor after one or two meetings, It helps in trust-building.
Twitter to discover meaningful conversations and what investors share.
Apart from these, there are many professional social sites that bring you in the ring with all kinds of investors in the industry. They can also connect you with the global investor environment.
Some professional social networking sites to consider for investor connections include EFactor, Cofoundr, Xing, and Meetup.
7. Personal Marketing
You need a strategy to prove your worth and raise those funds, then only you can see the growth graph going up. If it seems necessary, let your product go public, and get into the hands of influencers, and customers so that it can get in the eyes of investors.
If you are successful in getting genuine customers, the pressure of getting funds from other sources will automatically reduce.
Use freemium and hybrid business models that can help you market your product at a lower cost, and let it grab the limelight.
8. Use Your Family And Friends
Your family and friends can be your angels in disguise, and convincing them will be no problem as they already trust you and know that you are passionate. Keep remembering that personal and professional relationships are best kept separate. Maintain written records and inform them of any risks involved.
You can also use your friends as a bridge between you and investors by asking your friends in the industry for their recommendations. Climb your way to network many investors specialize in specific markets such as biotech, retail, esports, or mobile app development, so they rely on networks to find the right company.
At this stage of your startup’s development, persistence may be the most important requirement. Don’t be discouraged if funding doesn’t show up at your door after one try or maybe fifty, remember that there are endless opportunities knocking at your door. The best fit for your business model and your needs will be what you are looking for too.
Getting an investor to invest in small business or company is essential to growing your business. You take small steps and network with people through social media channels. Interact with a social media community of like-minded people, and pitch your idea to potential investors or angel investors.
A private investor can be a person or company that has the ability to invest in your company or startup. All these investors have only one goal in mind. The goal of helping a startup or company is to succeed and get a good return on their investment.
Before pitching your idea to investors, you must first consider it. All these investors look for people who are experienced entrepreneurs and have a track record of high performance and leadership in the company’s industry or previous ventures. Most investors will do extensive research on your business, your expertise, the background of your team, and your background in the industry.
Also Read: 5 Smart Tips To Improve The Financial Health Of Your Business