How to find investors when starting a business is a question that every single entrepreneur ask himself/herself at one point or another. After all, investors are the ones who, hypothetically, hold all the chips (and cash) when it comes to funding your venture. But, remember, there are some alternative ways to find investors outside of the normal route, and, in some cases, they may be more successful.
Since we care about the financial well-being of your soon-to-be startup, we figured it’d be nice of us to share a few tips on how to find investors, giving you resources and other outlets that you can use to get some initial money for your dream business. Remember, when it comes to asking for money, be confident in what you’re selling and, in the words of Tommy Callahan from the movie Tommy Boy, “don’t take no for an answer!”
From well-known websites like Kickstarter, GoFundMe and Indiegogo to Funded.com — which specializes in finding investors — crowdfunding has long been one of the trendiest ways to find money for various projects or campaigns. If you’re unfamiliar with any of these crowdfunding sites, among others, a business receives small donations from regular people who are interested in the company, product or campaign, and, in return, the investors receive some sort of gift; like the first product or a special service, depending on how the business describes different investor levels. It’s a fun way to bring people together and help ideas come to life.
Friends And Family
Having a difficult time trying to find investors? The answer to get some momentum might be right in front of you — and in your blood, literally! Friends and family are the people who know and trust you the most, so it makes sense to reach out to them and ask for a small donation to your business idea. After all, if they’ve dealt with your wild imagination for years and encouraged you to follow your dreams, now is the time for them to follow through with a financial contribution. Depending on your business and how you market it to your friends and family, there could be a solid chunk of change coming from the people who care about you most.
Sign-Up For Angel List
Unfamiliar with Angel List? If you’re a soon-to-be business owner, finding an investor may never be easier — but it’s not going to happen overnight. The website’s motto literally states that it’s a place “where the world meets startups,” meaning you’ve got a great resource to connect with some of the world’s most innovative and successful entrepreneurs. It’s a niche market on Angel List, so take advantage of the wealth of knowledge and experience the site has to (hopefully) find the right investor.
Small Business Administration
Yes, for some business — important to note — the Small Business Administration (SBA) may be a great resource in helping to find an investor, using theSmall Business Investment Company (SBIC) program to answer their question of how to find investors. But, before taking time to try and get your foot in the door with the SBA, understand that there are rules. For instance, generally speaking, to receive consideration for the SBIC program, a company typically has a net income of $6 million or less and an overall net worth less of than $18 million, with some business completely prohibited from the SBIC program. It’s a great idea to help companies, but angled more for established business looking to expand, not necessarily the young entrepreneur just opening a new concept.
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