subject: 3 Tips To Get Investors For Your Business [print this page] Making lots of money is simple- you just have to have some money. If you're starting a small business, though, that's exactly the problem that you're probably facing, and that's when finding an investor can become anything from an appealing luxury to a near necessity. While finding an investor, as in making contact with one, isn't much of a challenge, 95% of small businesses seeking investments fail to receive any funding. Luckily, getting an investor is not a just a game of chance: understanding how the investment process works and putting some well placed effort in will greatly increase your chances of getting the investment that will get your small business where you want it to go.
Find the Right Investor for You
The fact is, you can find all kinds of investors that aren't a good fit for you. Investors are people, too, with different personalities, expectations, and goals. Some will want to be highly involved, others won't invest as much time but will want you to report on everything you do. Don't fail to get an investment because you were making your pitch to someone with very different expectations or a completely different vision from you. Find an investor who is compatible with you.
Approach the Investment RIght
There is a relationship that comes with any investment. When you meet with investors, you are looking for someone whose vision and expectations are compatible with your own. Both you and the investor want to feel like you understand the goals you have for the business and that you are not trying to sugar coat things to them. Be enthusiastic, but be realistic and frank with them. They will appreciate it- many investors want to feel more like a partner than a client.
Make a Business Plan That Investors Will Love
That means a clear vision and accountability. Make it absolutely clear what your goals and expectations are, how much will be spent or won't be spent on what, how much growth can be expected, what the obstacles are, etc. Even if you hit it off with a potential investor and they are eager to meet with you, checkbook in hand, if your business plan doesn't scream competence and enthusiasm, it will be hard for investors to sign on with you even if they're interested. After all, they're not in it for you, they're in it for themselves. Your business plan should show them where their money will and won't go, what to expect as a result, and what obstacles are being overcome.
