If you have developed a business plan that you are confident will succeed, the only thing that may be standing in your way is securing the finances to put the plan in action. If you know how much funding you need and can identify what each dollar will be used, you can consider the benefits of looking for an investor to help with your startup. The benefits of working with professional investors can be a good idea if you know who the investment advisor is as a person. The age-old saying is that actions speak louder than words, and when it comes to trusting someone with your business or your plan, you need to have someone in your corner that has experience and is credible.
If you are in the market for an investor and aren’t sure where to start, here are some ideas for narrowing down your options. Remember that it might take a while before you get the right one, so have your end in order for when the times comes.
1. Look Into Start-up Launch Platforms
There are some companies that have specific platforms established to provide the information, research, and assistance that may be needed to help launch a business. These platforms usually have access to necessary forms, provide legal advice contacts, but they also include ways to reach out to potential investors. The website Startups.co, has over 13 million members, giving it the title of the largest start-up community in the world.
2. Look for an Angel
If you have some connections within the business world or the industry where you are attempting to infiltrate, you could look for an angel investor. These are individuals that are willing to financially invest in your idea, but they are also good mentors, offering advice and sharing their own list of contacts. Joining with an angel investor almost instantly expands your network, as you are usually introduced and welcomed by others working with the investor.
3. Look for Public Support
There are a lot of individuals looking to be a part of something bigger than themselves, and many of these giving individuals help would-be entrepreneurs through crowdfunding sites. With this option, you can take your business directly to the public or the philanthropists who are looking to help someone achieve their dream.
4. Look at Accelerators and Incubators
In its early days, your business is fragile and needs extra support in order to thrive. With incubators or accelerators, the investors are looking for a way to have a bigger role in the overall plan, helping to move your idea to a viable business operation. Within this process, they provide funding and expertise to help your business flourish. There is a website devoted to helping entrepreneurs find the right business incubator.
5. Look at the Government
Although some might shy away from turning to the government for help, the Small Business Administration is a good financial resource. The last few years have seen an increase in the programs that have been developed to help small business owners, and support usually comes from low-interest loans and grants. The benefit of using this option is the control you get to maintain over your business. There is no interference or staking a claim in your profits or success.
6. Look at Private Equity Firms
One of the more traditional paths toward investor funding is through an equity firm. These can offer resources from a few thousand dollars up to millions for your business. These firms look for opportunities that have great potential for growth and sell their stake a few years down the road at a significant profit.
Without adequate financing, it might be difficult to watch your business get off the ground. If you have the right investor, it can make your journey to success easier.