Yes, you want investors and funding. But the wrong investor can result in a major headache, excessive interest, or even disastrous legal matters. Being prepared to say no to a bad investor is really being prepared to say yes to your business. It takes time to find an investor. Even without one, a business credit card is great to have in your financial arsenal.
Business credit cards enable you to spread out purchases and pay over time, extending your existing funds. They also protect your personal funds in the event of fraud, and can help you purchase necessary equipment and other necessities to keep your company going.
The best business credit card allows you to earn rewards for the money you spend, giving you the chance to take your money even further. For example, the Brex 30 Card rewards you for every purchase made, giving you even more points for things like remote technology or food delivery. No two businesses are the same, and neither are any two types of investors. Carefully research each type of investor, noting who's looking for what, and what they're offering in return for their funding.
If you want to retain total control of your company, consider an angel investor and avoid equity financing or venture capitalist looking for partial ownership. Remember that some investors, like incubators and accelerators, only work with businesses at early stages. No matter what type of investor you seek, a business plan and accurate financial records are crucial to help take your company into the next phase. How to find investors that will help your startup soar How to find investors: 8 options for funding Potential funding investors are available in many places.
Here are eight options to get the financial boost you need: 1. Friends and family Many investors come with strings attached: interest rates, partial ownership, or even a role as a board member. Equity financing If your company's still a startup but past the ideation stage, equity financing is a popular route to funding. Venture capitalists Venture capitalists VCs are private investors who use their own money to fund businesses.
Angel investors Angel investors are one of the most sought-after funding options. Incubator If you have a new business idea but have yet to get it completely off the ground, an incubator could be just the thing. Accelerator programs An accelerator program is similar to an incubator in that they provide a wide variety of resources. Crowdfunding platforms Crowdfunding is a type of funding in which people "invest" in your company in exchange for a deliverable. Traditional business loans Last but certainly not least, you can opt for a traditional business loan.
Quick tips for being investor-ready Before you find an investor, your business must check all the right boxes. Make sure you have a business plan Investors want to avoid bad investments. Keep your finances in order Neat and tidy finances are a good thing to have, investor or no investor.
Be ready to say "no" if you have to Not all investors will be genuine or have your best interest at heart. Pad your funds using credit It takes time to find an investor. An inter-city taxi service provider. Chain of fast food restaurants. Zippr solves the very common, pervasive problem of explaining addresses.
For Investors. Global Investible opportunities. Invest with industry leaders. Portfolio with high returns. Shipra Sharma Tattva Spa. For Entrepreneurs. Quick investment raise Active global investors. Meet Our Investors. Ajai Chowdhry. Anand Ladsariya Mr. Harish S. Nagaraja Parkasam. Nitin R. Pradeep Gupta. Priyank S. Garg He started his career as a consultant with Deloitte Consulting in Chicago providing IT solutions to large corporations to solve their business needs.
Bikram Dasgupta. Saurabh Srivastava. Srikant Sastri Srikant has had a long and distinguished career. Sunil Kalra He sits on the boards on several companies and institutes including Innoveda Biological Solutions Cities and small towns are constantly developing business initiatives to get businesses to grow locally. If your nearest city doesn't support the industry you're moving into, spread your search a little at a time until you find one that does.
Depending on your business type, you may have to go to where the money is. Once you have a business concept, a product or service, and a plan, you're ready to start looking for funding. Here are five ideas to help you search for a business investor:.
It's best to move from small to large funding sources as your business grows. This order, while not set in stone, is a good general focus. It's easy to get a general idea of how to find funding, but attracting the right investors and perfecting your business's sales pitch can be extremely difficult.
Before diving in, understand that any investor you work with should be viewed not just as a funder but as a business partner, so it's best to work with like-minded individuals. Especially when equity is on the table, investors with a large enough stake in your company will make sure their voice is valued. These kinds of partnerships can be advantageous, but also very detrimental if they're forged on the wrong values.
When thinking about how to attract investors, keep these main steps in mind. As part of your business plan and general business growth, you need a company mission to build around. Investors want to know your "why" — the reason you think the world needs your product or service. You should be able to communicate what problem your business solves in one or two sentences. If your mission and goals are too complicated, you'll lose investors and customers alike.
You need a simple and clear explanation of your business's value to be successful. One of your most important tasks as a small business owner is building your brand and company voice, which is the most outward-facing aspect of your business. Investors look for brand value, especially when it comes to social media and presence in your local community. By marrying a strong company mission with a distinct, well-developed brand voice, you're halfway to finding the right investors. Finding the right investors means meeting with as many potential investors as possible.
Accept any opportunity to talk. This will not only help you hone your business's sales pitch, but also to read potential investors and decide who would make the best partners. Finding funding is often a process ridden with rejection and judgment. By taking as many meetings as possible, you'll increase your chances of finding funding. Don't get discouraged when potential investors decide not to fund your venture.
Blogging is one of the most underestimated methods of attracting inbound attention, telling your story, progressing potential investors through the thought process of wanting to invest in you, and remaining visible through each series of fundraising. Even without a website or blog of your own yet, you can publish via Medium or LinkedIn.
Moreover, another good option is to go to the blogs of the investors that you are looking to target. They all read their comments and often engage with responses. Leave a thoughtful comment to get noticed and start building the relationship from there. Simple emails have proven to be able to get the attention of notable angel investors and VCs. Popular startup accelerator programs always have an open invitation for applications from serious entrepreneurs.
Just make sure you know the terms and look for a good fit before you apply, or accept the help. Typically Accelerator programs include a demo day. This is when the startups attending the program pitch to a crowd of investors. I listed recently the ones to highly consider in the piece 10 Startup Accelerators Based on Successful Exits. In the event the accelerator that you are considering is outside of the list included in the piece above, I would highly recommend to do extensive research to verify the type of success stories and the track record from such program.
You may be better off using that equity that you intended to allocate to the Accelerator to create instead a very active board of advisors and incentivize them to help with making investor introductions.
Fundraising and growth needs to be strategic to be successful. If you can acquire real customers, you will be under less pressure to seek outside money. When you do, you can achieve better terms, from better investors.
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