Right Investor for the Right Business
We often asked ourselves how and where to find the right investors for our new business. Choosing the right investors is like looking for your perfect mate, finding the right financial adviser can be tricky, especially if you lack experience. It helps if you know what you’re looking for: Finding an adviser you trust and respect is critical, experts say, so don’t just sign on with the first person you meet. But how do you really know the right investor for your business. The first investor that you will consider is your family member; however at some point it’s not always a good idea. Money matters are a very serious subject, and that is one you want to avoid if you want to have a good relationship with your family. Put your relationships first and look elsewhere for business investments. So, who do you look for? Here are some people or group of people you may want to consider.
Lending Clubs, this is the easiest way of getting financial support. Lending clubs are made up of a bunch of investors that loan out money to people and businesses with good credit. They are a great resource and should be the first place you look.
Commercial Banks, if you are putting up a new business you may want to consider asking for a bank loan. Before doing so you will need to have put together a solid business plan before you ever hope to get financing.
Partnership, if you are having a hard time looking for a private investor to finance you, you may want to consider looking for a partner. You may encounter a silent type partner whom they let you run your business or an active partner, who is very much involved in running your business. The best place to look for a partner is at chamber of commerce or you may want to join an organization or group of business minded individuals.
Angel Investors, One of the most common people that you will encounter if you are starting up a business. Angel investors are wiling to invest on small businesses. Angel investors will provide you with funding however; they will be in close contact with you to make sure that their investment is going in the right direction.
Venture Capital, most venture capitalist usually invests on established businesses but if you are able to convince them to invest then you should consider yourself lucky. However, if they say no, these people will able to refer with other private investors that are willing to invest on small start up business.
Remember that in order to find the right investor, you should have a very detailed business plan to present. Investors will provide funds and expertise, but they will not advise you on how to write a good business plan. The key is, don’t be timid or afraid to ask. People will help you if you just ask and if you ask enough people you won’t have any problems finding a private investor for your startup small business.
More detailed information and useful advice can be found at http://www.funded.com/ Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need access to investors and funding providers, please do check out http://www.funded.com/.