How to Attracting Investor Easyly

How to Attracting Investor Easyly.

Identify who to target as investors. You can sell ownership shares in your business to raise money. Begin by identifying who you are targeting. Investors come in different shapes and sizes.

Partners. You might want to bring on a partner. If so, you can convert your sole proprietorship into a partnership. Ideally, your partner should bring skills that you need, such as experience with sales, marketing, or product development.

General public. Public companies sell shares to the general public. If you are interested in this approach, you should meet with a securities lawyer to discuss your options. “Going public” is a lengthy process and requires filing many forms with the Securities and Exchange Commission.

Wealthy individuals. Often called “angel investors,” many wealthy individuals will invest in start-up businesses. In exchange, the investor seeks a place on the business’ board or involvement in the day-to-day affairs.

Venture capital firms. Some investors choose to work through venture capital firms, which research companies and choose which ones to invest in. This is an active form of investment. The firm will want decision-making power in your business in exchange for investing. However, they also work closely to help you grow the business.





Understand the benefits and negatives of raising equity capital. By selling a share of your business, you now have a new owner who is entitled to a share of the profits indefinitely. They will also have access to your books and probably the right to vote on business matters.

Depending on your business, you may have to give up more than 50% of your company, which will cause you to lose control.

However, if your business fails, then you won’t owe them money.

You should carefully compare raising money this way with your other options. For example, if you take out a loan, then you don’t have to worry about a new owner.



Search for investors. It’s not easy to find investors who might be interested in your business. Some investors only pursue opportunities in particular industries, and some require that you have raised six figures on your own before they will look at you. Nevertheless, you can get the ball rolling by searching for potential investors in the following ways.

Look online. Search for “investor” and your industry. Visit their websites to find more about the kinds of companies that they invest in.

Contact your local Chamber of Commerce. Your local business community might have leads they can give you. Also, your local Small Business Development Center might know local investors.

Search the SBIC directory. The SBA runs the Small Business Investment Company program and licenses private investment funds. You can find the directory here: https://www.sba.gov/sbic/financing-your-small-business/directory-sbic-licensees.

Use a business capital broker. These brokers have networks of potential investors they can match you to. You can find a business capital broker by talking to your accountant or lawyer.





Create a winning presentation. Your business plan will be the backbone of your presentation. Investors will want to see that you have an attractive product or service and are well-positioned for growth. However, a compelling presentation will need to go beyond your business plan.

Be sure you can summarize your business in one sentence.[14] This is a challenge, but it will force you to identify what is unique about your business.

Research your investors. Strive to create a personal connection with the investor within the first few minutes.

Show your product or service. If you create products, bring a sample to show the investor. If you provide services, then create a short video that shows what you do. You want to make sure the investor can actually see your business in action.





Go through due diligence. Potential investors thoroughly vet any company they are considering supporting. Accordingly, you’ll go through a due diligence process where the investor will look in detail at your product, services, market, and management team.

If they like what they see, they will create a sheet describing the terms and conditions of their investment.

Depending on the amount of the potential investment, you should consider working with a lawyer during the due diligence process.