In the era of private business and self-employment, those wishing to start something of their own great variety. Many have ideas for their startup, but often there is no money to implement such ambitious plans. Then the main question arises in my head: "Where to find investors for business?" In such an active search is approximately 80% of all aspiring entrepreneurs in the world. So, how to find an investor for a startup?
Preparatory stage
Before embarking on a search, one should probe the soil and find sources of funds.
First you need to arm yourself with a pen and paper and write out all kinds of banks that are ready to finance budding entrepreneurs.
If the option with a bank is not suitable, you need to seriously think about how to find an investor for the project. To do this, you need to clearly understand at what stage of development the business is (from creation to expansion). This will help turn to the right person.
If the project is only at the development stage, then, unfortunately, it is unlikely to be able to get any financing from reputable investors. It just so happened that large business sharks and experienced professionals do not really like spending money on imaginary numbers and plans.
Things are much simpler at the stage of formation. If the project is already starting to generate income, but has not yet reached the level of self-sufficiency, then you can raise funds from venture funds.
At the moment when the company begins to generate small income and gradually takes its place in the market, it becomes a tidbit for investors who are willing to invest their money in its development.
This process can be described for a long time, but the meaning will remain the same: the more the company has done, the easier it is to find a sponsor. But what to do at the very beginning of the journey?
Small scale investors
Many people know the 3F rule, which in the original reads: Family, Friends & Fools “Which in Russian means“ family, friends and fools. ”It really doesn’t matter from whom to get money. If you can’t figure out how to find an investor for a small business, close people can apply for its role, and they can very well help if it’s not about incredible amounts.
But there is one “but”: these kinds of debts often create a rather tense situation during further communication with your “savior”.
Banking
Few people approve of this approach. It is possible that they are afraid to fall into the trap of bankers who will not only not allow them to earn, but will take away everything that is. Sometimes you can find good financing options that the bank offers. To do this, you need to carefully study all the proposals that are in this area.
If you did not find direct financing, then in this case you can take a loan. At least, this will allow you to independently start the project, and possibly in the future and develop it.
How to find an investor for business
If you need to find a sponsor, do not sit still. Need to move in his direction! First you need to develop a business plan. It should contain information about the services or products that your company offers, general information about the market area and analysis of competitors in this industry. You will also need a financial statement for the last year. It would be nice to make a visual presentation, while placing emphasis on the benefits that an investor can get for himself if he works with you.
If you prefer to save your time and want to know in advance the sponsor's opinion about your project, then you can contact him remotely.Before writing him a letter, you need to write a short summary. It should be well-built and have a selling character, in general, by all the rules of the advertising genre. It is best to send it immediately with a well-designed investment proposal.
It’s better not to follow the path of all inexperienced entrepreneurs. You should not send an offer to only one investor and, like Hachiko, wait for an answer. It is better to make a few "bets" and send out presentations to potential sponsors, best known for their projects in this field. After a few days, it makes sense to call the selected recipients and find out if your offer has caused interest.
What investors want to know
It often turns out that people are not ready for what they are so diligently looking for. The entrepreneur is so preoccupied with the question "how to find an investor for business" that he completely forgets everything else. For example, about what information you need to have with you. Do not think that your CV about the company will always be enough. You must clearly own your business idea, know all the intricacies of your project, and, of course, clearly understand the size of the required amount. One must be prepared to answer the obvious question of the investor about the first estimated profit. He must be sure that he can make money on you.
Information about the project participants decides a lot: their work experience, professional qualities, motivation, etc.
Where to find investors for business
On your difficult path, you are faced with another question: "Where to find investors for a startup?" To achieve success, you should not act trite and follow the path of thousands of predecessors. Be a little savvy:
- Look for various competitive programs that provide funding. Even if this project does not give real money, then at least you can declare yourself and attract the right attention.
- Try to contact businessmen who could find financing. If they are lucky, they can share information on how to find an investor for a business, and perhaps introduce them to their own.
- Attend business events and conferences where you can find a sponsor and interest him in your project.
- The easiest way will be to conclude a contract with a special law firm that deals with raising funds. But this option hits hard in my own pocket.
Searches in Moscow
There are many beginning entrepreneurs, and in the capital it’s a dime a dozen. But, unfortunately, few of them know how to find an investor for business in Moscow. A lot of money is spinning in such a big city, but who is willing to share it? It’s not so easy to find such volunteers: who will risk in a zone of enormous competition? To interest the investor in Moscow, you have to try.
The business plan should be perfectly worked out to the smallest detail, here the miscalculation is unacceptable in any case. After this, the entrepreneur will have long walks in various forums and congresses: this will help not only find an investor, but also expand the circle of acquaintances with various people who can help find the right person.
In addition to this option, you can look for sponsors on various investment sites where different people are willing to invest their money in worthwhile projects.
Business in Russia and Ukraine
Finding an investor in the post-Soviet countries is not so simple. Our people do not really like to share money. But every year it’s easier and easier to find sponsors. For example, in Ukraine, the Association of Private Investors is actively operating, and in Russia there is Invest-Fund LLC. Such organizations often organize special congresses and forums so that aspiring ambitious entrepreneurs can present their projects and find sponsors.
Without a doubt, the most famous event of this kind is Investor Day Central and Eastern Europe, which is held annually in Ukraine. It is aimed exclusively at the development of IT-technologies.
The most promising areas of financing
If you are at the very beginning of the road and are thinking about which industry to direct your efforts to, then you should study the most popular trends at the moment. If you do not think about this issue in time, you will find even greater difficulties in finding a sponsor. After all, how to find an investor for a business that does not bode much profit?
All projects are considered from two points of view:
- Payback - how quickly you can get a good profit.
- Long-term - how long and stable the income will go.
The ideal option for any investment is a minimum payback period and the appearance of a good business development prospect for five years in advance. Today, the following industries are leading among such superprojects:
- Medicine, pharmacology, healthcare.
- Ecology.
- Tourism, restaurant and hotel business.
- IT technology.
- Advertising and marketing.
- Alternative methods of generating energy.
- Building bussiness.
- Household appliance manufacturing.
