When you are starting or expanding a new business, it is more than likely you will need to find some investors. This can be a daunting prospect at first, but with planning and preparation, it can be easily managed. In many cases, finding investors is not a difficult task. But settling on ones that are reliable and well suited to a particular business is a greater challenge. This calls for a careful review of all the possible options.
All businesses need at least one website. Now that website builders are more developed and accessible, building your own website is a task that can be easily maintained internally.
Family and friends
The first port of call for many business founders will be those closest to them. This makes perfect sense in that these are the relationships that can be the most trusted. Friends and family are more likely to believe in your projects and will have a personal interest in contributing to your success. However, this could pose a potential strain on the family if the business fails.
Professional social networks
The social networking sites that help businesses to connect with investors should not be underestimated. These can be specific to business fields and industry specializations, and they can source investors in other parts of the world. This could be a way of introducing your product to different markets. These social networks include LinkedIn, Meetup, Startup Nation, Cofoundr, Xing, or Plaxo.
The idea of angel investors is that they invest in a business, but also offer advice, mentorship, and provide access to useful networks. Angel investors can be found at platforms such as Angel Investment Network or Angel Capital Association, where information is listed on angel investors and the type of investments they are interested in.
Small business administration
In the United States, the Small Business Administration (SBA) is aimed at helping small businesses avast pro antivirus review. The SBA helps businesses find pre-approved investors, and it also guarantees loans with low-interest rates and generous terms of repayment. In addition to this, the agency offers help to launch and grow new businesses.
Venture capital or private equity can be an option to receive significant investments, but this is usually limited to new businesses with high growth potential. This accounts for a low proportion of businesses, which are most typically tech startups. Also, many VC investors will expect not only equity in the company value, but also a significant role in decision making.
Incubators and accelerators
This is an option that offers not just funding but also the advice, networks, and physical space that enable new businesses to grow and succeed. When entrepreneurs are working in the same space, they have the chance to exchange ideas and build a community. Popular accelerator programs include Techstars and Y Combinator, while listings of incubators can be found with the National Business Incubation Association (NBIA).
Now that there is a wide range of crowdfunding platforms to choose from, new businesses are able to search for those in their particular field. Some platforms are focused on projects with social causes, such as StartSomeGood. Others offer business loans, such as Lending Club. Each site has a different focus, so these should be carefully researched. Crowdfunding is the quickest way to connect with the highest number of investors.
There are a variety of options for small businesses that are looking for investors in their new projects. The next step is to determine which investors will offer the right type of relationship, terms of agreement, and additional assistance to accompany the investment.