In most cases, people who want to do business do not have enough start-up capital for this, so the question automatically arises of how to find an investor willing to invest their own funds.
Of course, there are many other ways to get money, for example, ask for loans from friends or apply for a loan at a commercial bank. But not everyone has friends who have a large sum of money, and credit institutions require a substantial security deposit that would serve as a guarantee of the return of the debt. That is why the search for investors is a rational way out of this situation. In addition, with long-term cooperation, he will be able to free you from temporary financial difficulties that periodically arise in each production.
Before you find an investor, you should develop a business plan for the project, and it should be drawn up in such a way as to interest the potential investor as much as possible. In many countries, the formation of associations has begun to unite investors of various interests and fields of activity. In the presence of such organizations, the search process is greatly simplified, because with the support of associations seminars, forums and other events are regularly held at which novice businessmen can share their ideas.
It is necessary not only to understand how to find an investor, but also to be able to interest and keep him. First of all, it is worth knowing what investors are paying attention to. In addition to the main advantages of the project and the degree of their own benefit, they focus on the personal characteristics of the businessman, for example, his ambitions, leadership qualities, level of professionalism and desire for growth. In addition, it is important to correctly present the idea, because the better you present your project, the more money you will receive in the future. That is why maximum efforts should be made to create a presentation of the project, which will present it as unique and unparalleled.
If you do not have the opportunity to attend special events, and the question of how to find an investor remains unresolved, then do not despair. And remember the simple, but most important rule: do not be afraid to knock on closed doors, at least one of them will certainly open to you. Try to find out which of the successful people in your city are interested or working in the intended area. Further, the task is simplified, you need to make an appointment and personally submit your project. In this case, it all depends on you. If a person is confident in himself and in the success of the business, and besides, he brings significant arguments in favor of the project, then he can count on a significant amount of investment.
No less important for the investor is information on the payback period of the project, as it receives a share of the profit or other privileges. Do not promise the “golden mountains”, all calculations should be based on real facts. After all, business people are used to believing in numbers and reasonable indicators. Typically, the average return on investment is about five years.
Before starting your own business, you need to carefully consider where to get money for the business. Searching for an investor is a rather laborious and complicated process. Some novice businessmen try their hand at special forums. However, not all investors have a real opportunity to invest. Therefore, before presenting your own project, you should clarify how serious a particular partner is, for example, you can find out if he has made this kind of investment before or evaluate the success and profitability of his own business. If everything is in order, you can safely enter the struggle for the implementation of your idea.
Many novice entrepreneurs make a huge mistake omitting facts that seem natural. In fact, they are sometimes crucial, so do not neglect any advantage that distinguishes your project from other analogues.