How to find a small business investor
Novice businessmen are often faced with the problem of lack of financial resources, which are so necessary in order to bring a business idea to life. It is in such cases that the option of investment loans for small businesses is just right. So, an entrepreneur should start looking for an investor who would invest his money in a future business. This procedure is quite difficult and you need to make every effort not only to find an investor, but also to convince him of the prospects of the business.
In this article we will dwell in detail on the question of how to find an investor for a small business.
Why and for what purpose they are looking for an investor
Regardless of what type of entrepreneurial activity a person is engaged in, there is still a need for financial resources, otherwise the business will not develop properly. In this situation, the business will simply close at the initial stage.
It is necessary to understand: in order for the business to start developing successfully, the most important thing is not to hesitate. It is for this reason that entrepreneurs do not have the opportunity to save money. There is a certain risk that while the person is engaged in fundraising, the moment will simply be missed. Only active and enterprising businessmen conquer the modern market.
Aspiring entrepreneurs do not need to worry about the fact that their start-up capital is not large, because even eminent companies used loans at the dawn of their careers.
For young firms, the prospect of successful development is often limited by a lack of finance, but most often they have a large number of ideas that need to be implemented immediately.
At this time, the question of how to attract investment in small businesses and find an investor is not so difficult. For this purpose, foundations and companies are specially established that provide financial resources to start-up entrepreneurs.
Along with this, you need to understand that not every novice businessman can receive money from the fund. Before this person needs to convince the investor to invest in his business. Basically, all professional investors have significant investment experience, so they can easily and easily recognize potentially promising projects.
At the same time, entrepreneurs should understand that investors do not work on a charitable basis, therefore, in the end, their expectations boil down to the fact that the business will bring great profits.
No company can operate without investment, and very often start-up entrepreneurs have a great idea, but no funds to implement it. In this article we will talk about where to find an investor for your business and we will analyze 14 important things that you should definitely know before starting your search for an investor.
We are looking for entrepreneurs in need of investment! We are looking for entrepreneurs who want to open their own business and need investment! Our base numbers over 10,000 investors around the world who regularly invest in new projects.
All you need to do is describe your idea and leave your contact details. We will send you a mailing on our base of investors and if someone is interested in your project, we will contact you in 2-3 days.
We have already found more than 800 investors for small businesses and this figure continues to grow every day. Send your ideas, regardless of whether you want to open a regular hairdresser or a tech IT startup.
It doesn't matter what stage your project is at. Even if it is too crude and is only in the planning stage, then write anyway, we will help you create a financial plan and find an investor.
Thank you for leaving your application!
If one of 10,000 investors is interested in your idea, we will contact you shortly.
Important things to find an investor
First, we want to analyze the 14 most important things you must know about in order to find an investor for your business. Without knowing these fundamentals, any method of finding third-party investments won't work for you, so be sure to check them out.
I have a brilliant idea and I won't tell anyone about it!
A very common mistake made by very green entrepreneurs is hiding their ideas. They think that they have come up with a brilliant idea that will bring millions of rubles and do not tell it to anyone, because they are afraid that someone will steal it and implement it faster.
Both beginners and experienced entrepreneurs often think about how to find an investor to attract additional capital to develop their business. Even in a difficult 2021, you can find profitable investments and reach a new level. Let's analyze real methods and suggestions.
the best ways to find investors of the year
Finding money to start a business or funds to maintain it even in difficult times is a feasible task. There are many ways to deal with it. The search for an investor with a competent approach will bring the expected effect, and the planned project will be implemented in a timely manner.
The process should not be approached from the position of a petitioner - you are offering another person to receive passive income from his available funds. Present the information as a worthy investment in a successful venture with a promising future. Not a single business person will refuse the opportunity to participate in such a business.
You can attract business investments in the following ways:
Method - Relatives
You can start your search for an investor by contacting relatives who will not refuse a loved one. Parents, uncles and aunts, brothers and sisters will consider such assistance to be a matter of duty and conscience.
Another advantage of this method is that relatives lend money, usually without interest. Which means the opportunity to significantly save on payments.
Way - Friends
Not everyone is ready to apply for money to relatives. The solution will be to borrow from friends who know a person's personal qualities and believe in his successful future. In the circle of loved ones, there are often people who have savings. They are rarely willing to lend large sums to strangers, but it is sacred to support a good friend with a positive reputation.
Posted by Natali Killer Published March 9, 2021 Updated May 15, 2021
How to find a small business investor from scratch? This question is often asked by young and beginning entrepreneurs who have their own project and idea, but do not have money. Seeking help in obtaining money is a difficult step, however, you can find your investor, setting yourself the goal of realizing your project. How to attract investors to small business?
Brief content of the article
Searching for investors to implement an idea in small business
How to get investments for small businesses? When looking for sources of funding for a project, consider the following rules:
- do not delay the deadlines;
- gather as much information as possible about a potential investor in order to avoid misunderstandings in the future;
- carefully calculate the amount of necessary investments; <
- concentrate on specific goals;
- Be honest and open when negotiating with an investor, do not hide important facts.
How to get investments for small businesses from the state?
Today the state of the Russian Federation offers a wide range of ways to promote the development of small business:
- allocation of state subsidies for the purchase of premises and fixed assets in the amount of up to 60 thousand rubles;
- grants for novice businessmen in the amount of up to 60,000 rubles; li >
- compensation for previously received bank loans for business development;
- a subsidy from the Employment Center up to 25 thousand rubles;
- assistance from Small Business Support Funds;
- subsidy for entrepreneurs aimed at developing innovative technologies (maximum 60 thousand rubles).
How to find a private investor to borrow money?
- Fundico is a joint lending service;
- Nimfamoney is a closed platform for investors and startups (loan amount from 100,000 to 1 million rubles); li >
- business. otok. igital - private lending to entrepreneurs;
- vdolg. u - loans up to 500 thousand rubles to a bank card;
- loanberry. u - online loan service for up to half a million rubles.;
- townmoney. u is a P2P lending service that brings together the interests of borrowers and investors.
In order not to waste time and money, it is better not to rush.
Founder and CEO of Skipp automated recruitment platform for product teams, co-founder of Lingualeo.
It happens that a potential entrepreneur immediately starts implementing an idea: he is looking for premises, suppliers, hires developers, rents an office. After a few months, the product is ready, and then a meeting with reality takes place: users are not happy, there is no budget for marketing, no stream of new registrations or sales is expected. The entrepreneur gives up, thinks that the market is not yet ripe, and returns to office affairs.
In order not to find yourself in such a situation, the project should be started not with the code, but with the verification of the idea: to study the market and competitors, to communicate with clients, to assess the commercial potential. And only after that, proceed to launch. Let's figure out why this is important and how to test ideas in general.
What may be wrong with the idea
Not all ideas are doomed to success - some will not make a profitable business. Let's say you feel like busy managers don't have enough time to keep track of their health. To help them, you decide to launch a telemedicine marketplace. Here's what could go wrong:
- The problem you are thinking does not exist. Let's say you think busy managers don't have time to see a doctor all the time. But you judge only by yourself and a few close friends. It may turn out that you are an exception to the rule, while the rest of the difficulties do not arise.
- There is a problem, but the solution does not work. Let's say it turned out that managers really do not have time to monitor their health. But is telemedicine right for them? Maybe they are not ready to trust "doctors on the Internet" and the service with a specialist call at home will be much more in demand?
- The market is too narrow. If there is a problem and your solution fits, it still does not mean that the idea will help you make good money. Perhaps there are only a few hundred of such managers in Russia and they visit doctors every six months. A thousand not very high checks a year is hardly what you are after.
- It's too expensive to get customers. Okay, even if there are many potential customers. Will you be able to attract them to your service and earn? It may turn out that acquiring a new consumer of services will cost you 5,000 rubles, and you will earn only 3,000 rubles on it. As a result, you will only lose 2,000 rubles on each client.
Why test an idea
As you can see, there are many pitfalls, and preliminary checking will help to partially avoid them. This is why before launching a product or service, you must first make sure that the idea works:
- To eliminate the influence of one's own cognitive biases. It happens that managers want to start a business in an area in which they are well versed. They are asked for advice, they conduct training, they are followed on social networks. In such conditions it may seem that there is no need to test the idea: "I know the industry very well." Unfortunately, even years of experience does not always help. The market may still be too small and the economy negative.
- In order not to waste time and money. If you immediately create a full-fledged service, then you can easily spend several months and hundreds of thousands of rubles. At the same time, at the output, get what users do not need at all.
- To make a product in demand. It can be the other way around: while testing an idea, you will understand where to focus resources in order to launch a useful service faster and start earning.
How to test an idea
This task is worth two weeks full-time. If you can only set aside half a day, then the check will take about a month. If a couple of hours a day - two months. During this time, it will be possible to go through all the steps and decide whether to develop the idea or not. But there is no need to rush - premature conclusions can be statistically incorrect and dangerous.
Step State the problem you want to solve