Running a small business may not seem like rocket science. However, there are a lot of risks connected to it. In this article, we have compiled a list of the top 10 ways to find investors for your small business.
It may not even seem necessary for many people to consider getting an investor to invest in their business. However, it must be kept in mind that investors can play a very crucial role in helping a business succeed.
These ways can be more than fruitful if you want to find investors for your small business!
Family And Friends Can Be The First Investors In Your Small Business
Your friends and family play a big role in helping you and your small business grow. Hence, they should also be the first people that you ask for help if you want your business to grow. Growing one’s business is never easy without people supporting you. Even better when the support is given to you financially.
Although there is some risk to asking your friends and family for an investment in your business, it is always better to have them know what you are up to if you ever get an investment from them.
You can ask them in various ways:
- Be direct and make them sure of your motive.
- Make sure they are comfortable in investing for your business, don’t be too forceful!
Either way, it is suggested that you keep a track of everything and present what may be necessary to the investors. This might also help your relationship in not souring if your business ever fails.
Private Investors Can Be Great Investors For Your Small Business
When you are looking for investors for your small business, it is suggested that you go for private investors. Many people choose to go to private investors when it comes to finding the best possible investors.
Private investors, otherwise known as “Angel Investors” and “Venture Capitalists” will surely help you in getting closer to your goals. However, you might have to give them a certain sum of money in the long run.
Either way, these investors are likely to lend you an amazing support system.
Crowdfunding Platforms Can Be Great In Helping You Find The Right Investors
This is one of the most common types of investment that people may prefer over most other types of investors. Through a website that focuses on the specific kind of money required, a crowdfunding platform enables an individual or business to obtain funds online.
Crowdfunding can either be reward-based or donation based. In reward-based crowdfunding, the investors are asked for a small sum of money. In return, the investors are likely to get a reward. Donation-based funding helps people to find the right amount of investors to help them start a new business. Other types of crowdfunding would be peer-to-peer funding and equity funding. These types of crowdfunding are just as preferable among new business owners.
However, for a small business, it is always suggested to use reward-based funding.
Reach Out To Companies Or Institutions In Your Field Of Work
To network, you might need to make a lot of calls or even go to professional gatherings. But if you keep looking, you might come across that one person who likes your product or company concept enough to invest in it.
This is when you become successful. There is nothing better than having to find the right institution or company that is interested in investing in your small business. If your company aligns with the needs of those prospective companies, it is more than likely for them to try and invest in your business.
Try To Get Investors From Small Business Administration (SBA)
SBAs have been great investment prospects for a very long time now. People choose to go to small business administrations and have them invest in their businesses.
More than half the population of small business owners are likely to choose their investors from SBA. The investors facilitate small business owners as per their necessity which makes this source of investment all the better than any other options if you are a small business owner.
Social Networking Sites Are Always Great Options
In this day and time, social networking sites have the most popularity. These sites also have a high level of engagement. There are many social networking sites besides just LinkedIn that is going to help you find the best possible investors.
A lot of these social networking sites for professionals also let you contact foreign investors that want to take part in the global economy and frequently introduce your product or service to their region of the planet.
Market Yourself To Find The Best Possible Small Business Investors
It is not always possible to find investors. Sadly enough for you, they never come walking to you unless you have a big name in your industry.
However, it is never too late to ask for help. And by the help we mean, you can market yourself. At this point, you are not only asking for help but looking to find people who are likely to help your business grow through investment. There are many social sites you can market from like conversations on Quora, guest pieces on well-known blogs and personal blog posts, and traditional media channels.
Try To Attract Incubators And Accelerators
There are many incubators and accelerators that will surely invest in your business. Investing in a small business isn’t always an issue for those incubators and accelerators who find your small business and the concept of your organization attractive.
Incubation associations are a great place for you to grow and learn more about whatever might help you in your small business journey. It is always amazing to have these associations or accelerators find value in your business and invest in it.
Try To Get Investors From Online Lending Platforms
These lending platforms are here to provide small businesses and business owners to profit from the lending. It is surely not easy to find the right investors but it surely will lead to something fruitful in the long run.
Private Equity Firms
There are many private equity firms you can choose from that will invest in your business. Private equity firms provide access to investments ranging from a few thousand to millions, primarily to start-ups that are thought to have high development potential across a variety of industries and are still in the early stages.
If you are a small business, you might as well choose a smaller amount to be invested in your business. And, these private equity firms will surely help you in finding the right types of investors!
It is important that when you are running a small business, you are also getting a source of investment from somewhere. When this happens, you can always make sure to build your business into something bigger and better with time. All the aforementioned sources of investors will help you reach your goals quicker and you will surely benefit from the investors. Keep in mind, as a small business owner, that having investors is always a good option than not having any.