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How To Find Investors For My Business/Startup: 5 Simple Tips

If you have a profitable business or business plan for your startup/company, and you know how much funding you need, then the next step is finding investors that work for you. This can be a lot more challenging than you might initially think. Here are 5 simple tips on getting investors into your business.

#1 Trade Show

Source

Online fundraising platforms are a good opportunity but sometimes thereā€™s nothing better than a face-to-face conversation. A trade show will give you just that. Research the B2B fairs focused on your sector and select one featuring a platform/special event which connects young companies and investors. Then sign up and prepare to impress potential investors with your brand and services.

If you wish to take it a step further and really stand out ā€“ especially if you have an innovative product to present ā€“ is to enter a competition. Most trade shows have various competitions meant to highlight fresh ideas and support young businesses. Winning will certainly increase your chances of being noticed and funded.

Contributors: Diana Vicheva from ExpoBeds

#2 Network

In finding investors for your business the first step is knowing your business. You will already have a business plan with your demographics laidĀ out. From there you will need to identify who stands to gain from theĀ success of your business. This differs from your demographic in that yourĀ investors may not have a need for your business, but they may invest in theĀ industry, the property, or the brand.

Don't be afraid to go to competitor'sĀ investors, if you believe in your business and can back it up, network withĀ anyone who will listen. A good investor will be able to identify aĀ profitable investment, but it is your job to sell. What makes your businessĀ bound for success? Identify risks and assets, and approach investors from aĀ realistic but exciting standpoint.

Contributors: Nate Masterson from Maple Holistics

#3 Get Customers To Prepay

The best way to get investors for your business is to get customers thatĀ pre-pay for your products or services.

Many companies have raised capital and gone belly up. The key toĀ successful financing is to accelerate value creation. There's no better wayĀ to validate that you're creating value than to raise funds from yourĀ customers. Customers are the only constituency who can guarantee youā€™llĀ stay in business.

Any funds needed to accelerate growth beyond customer prepayments could beĀ provided through equity such as an angel investor or a venture capitalistĀ or through debt such as a bank loan or a type of bond offering. BeforeĀ raising these funds, itā€™s essential to have plenty of customer funds firstā€”soĀ that you get the best deal. By the best deal, I mean staying in control ofĀ your company.

Contributors: Eisaiah EngelĀ from Founder Friendly Standard LLCĀ 

#4 Rocket Dollar Makes it Easy

Fundraising made easy: 38% of startup founders report raising money fromĀ their friends and family. What would be the obstacles to stop family andĀ friends from investing in you latest venture? Lack of extra liquid assetsĀ to invest.

The simple fix is to encourage potential investors to get aĀ Rocket Dollar account. Rocket Dollar caters to individual do-it-yourselfĀ investors.Ā Rocket Dollar accounts allow those people with multiple IRAs, with oldĀ 401(k)s, to fund either a Self-Directed Solo 401(k) account or aĀ Self-Directed IRA. Once their accounts are open, friends and family willĀ have checkbook control of their retirement money to invest in what mattersĀ to them.

Contributors: Henry Yoshida from Rocket Dollar

#5 Donā€™t find investors

Debt can magnify mistakes however when used wisely it can be a powerful fulcrum. When we launched our business two years ago we had no money and no outside capital to get started with. Like most tech start ups we went on the fundraising circuit talking to angel investors and venture capitalists begging for money to get started. However our vision was just to broad in scope and luckily we got turned down and told no over 40 times. 

Contributors: Zach Hendrix from GreenPal 

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Written by Zak Parker

Journalist, writer, musician, professional procrastinator. I'll add more here later.

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