How to Find Investors for a Business Startup

If you are an entrepreneur and want to start a business of your own but lack the necessary funds, note that there are several options available. There are various types of investors available, what you need to do is find the one that suits you best. An investor can be a bank, any lending institution or an individual, who has the necessary funding.

With the passage of time, there has been a considerable increase in the individuals who are prepared to invest their money for others. Of course, they are not here for free, nothing is for free. For this, they will charge a certain percentage that depends from case to case and primarily on what kind of investor you are looking for. If you have a million dollar idea but do not have adequate resources, the best way is to present your idea to these people and prove that the return on their money is guaranteed.

Most individuals set a percentage on the amount loaned while some prefer taking a substantial share of your profits. Remember that, it is hard to attract investor just on the basis of your idea as investors do not like just putting their money on risk.

Instructions

  • 1

    You should get started by getting your idea register so no one steals it otherwise it will not be safe telling strangers about your idea. Investors will not be ready to invest if you are not putting your money at risk. They want to be sure that you are their equal participant in risk sharing.

  • 2

    Choose a name for your business and register it with your State Department. It is important that you choose a suitable and catchy name for your business and fulfil all the legal requirements. You would have to pay a certain amount of money for registration.

  • 3

    Make a feasible business plan and present it to the investors.

  • 4

    You cannot memorise all of your potential investors, so it is better that you make a list of them. After the list is complete, you should contact them one by one and cut the names who are not interested.

  • 5

    They just do not believe in ideas but the implementation of the idea. Work hard on your idea and do not forget to show them your progress. Remember that, not showing them the progress after equal intervals will give room to frustrations.

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