Ways to Find Investors for your Business
Ask small business groups. You might not know where to begin. It’s probably best to start close to home. Meet with other small business owners or stop into your local Chamber of Commerce. Ask if they know of investors for your business.
Find a local incubator or accelerator. These organizations help start-ups turn their ideas into a real business, and they provide funding as well. You can find an incubator or accelerator near you by using the National Business Incubation Association’s directory listing.
- Generally, incubators help start-ups or new businesses, while accelerators help already-established businesses grow faster.
- Incubators might not provide investments directly. However, they can help connect you to potential investors.
Look at online crowd funding. You can reach investors worldwide by using an online crowd funding site, such as Equity.net. These websites give you access to hundreds of investors who can help you finalize your business plan and grow your business
Remember friends. People who know you might invest in your business, especially since they can see your drive and determination. Remember to approach them as you would any other investor.
- Friends will want some return on their investment, just like other investors. However, you might be more flexible in what you can offer. For example, instead of making them part-owners, you might want to provide them with free goods or services in return.
- You also should think about asking people you know for a loan instead of for an investment. With a loan, you don’t have to give up any ownership in your business. Also, if your business fails, you can wipe out a loan in bankruptcy.