If you’re starting a business, or if your business is starting an ambitious new project, then there’s one thing you need. Well, okay, there’s more than one thing. You need great ideas, you need the right people helping you, you need effective marketing campaigns. But the chances are you didn’t think of any of those things first. Chances are the first thing that came to mind was money. Capital. After all, you’ve gotta spend money to make money!
But if you don’t already have that capital, then trying to get your hands on it can make your head spin. The most obvious solution for many is to get a business loan. But what if you couldn’t get yourself approved for a loan? Or if you simply don’t want to involve banks and other official creditors in this process? Then you need to start looking seriously at investors.
This can be quite a daunting task, but it is achievable. If you’re feeling a little lost at the moment, don’t worry. Here’s a quick guide to the best way to find investors.
In all likelihood, this one is only really useful to very small businesses. As in, the kind of business that was only started a few days ago and probably hasn’t left the owner’s bedroom or garage just yet. It isn’t a common practise for businesses that have already evolved into office-based enterprises.
But if you’re just starting out, then this could be a viable option. Of course, it does rely a great deal on your personality, as well as the wealth of your friends. If you want to explore this option, you must take steps to ensure this won’t affect your friendship. Women In Business has a great article about asking friends and family for investments.
This is one of the more traditional ways of fishing for investors. One of the benefits to this route is that you’re going directly to an arena which is filled largely with people looking to spend money. Your typical trade show is crawling with investors who are looking for the next hot property they can get a piece of through their finances.
Of the three suggestions in this article, this is the one that can cost the most, initially. But it’s also the one that is most likely to pay off, if you play your cards right. Make sure you have an eye-catching display from somewhere like Infinity Displays. And make sure you have the trade show strategy to go with it!
This is by far the most postmodern method of getting investments. It also works as a great middle finger to investors that have turned you down previously, if you’re so inclined to react that way.
Crowdfunding lets you take your project proposal directly to the end consumer. If they’re interested, they can put some money in, usually in exchange for rewards. If your business is working on a creative project, then this could be the best method of investment hunting for you. Look how well it’s worked for Tim Schafer! But if your project doesn’t quite have that creative catch, that doesn’t mean you shouldn’t try crowdfunding. There are more business-oriented alternatives to Kickstarter you should explore.