- Six Ways To Find Reliable Investors Looking To Invest In Small Business
- What Investors Look For In Startups
- Final Thoughts
Do you have a feasible business plan for your start-up or business? If yes, it's time to locate investors. Finding and convincing investors to finance your start-up can be a huge challenge. However, you do not have to knock on hundreds of doors before your business gets funded by reliable investors. In this article, we’ll explain six reliable ways to find investors looking for projects to fund. Since investors aren’t benevolent, we’ve also highlighted signals that’ll persuade investors to part with their money.
Six Ways To Find Reliable Investors Looking To Invest In Small Business
1) Start-up Launch Platforms
Start-up Founders need information and assistance on ways to connect with the right investors. That's what small businesses get from start-up launch platforms. For example, Startups.co offers a convenient channel to locate investors efficiently. With more than 13.9 million members, it stands as the largest start-up community globally. This presents your business with an extraordinary opportunity to find the right investors in your industry without stress.
2) Angel Networks
Looking for angel investors that aren't only interested in investing in your start-up but are also willing to offer mentorship and present you with access to a network of contacts? Start from places like Funded.com, Angel Investment Network, and Angel Capital Association. They are home to thousands of angel investors offering information on investments.
3) Crowdfunding Sites
You can also meet reliable investors on crowdfunding sites, from the general public interested in the “next big project” to philanthropists willing to help others achieve their dream. You can connect with accredited investors searching for unique ideas to fund. Kickstarter, Indiegogo, Pererbackers, RocketHub, and OurCrowd are excellent crowdfunding sites to get started! Since each crowdfunding site has its unique way of incentivizing investors, take time to study them carefully to figure out the website that aligns closely with your goals.
4) Incubators And Accelerators
As the name implies, accelerators accelerate the growth of start-ups and small businesses. While incubators have strong connections to capital sources. Collaborating with incubators and accelerators will connect you with resources that will help your business grow. They will transform your ideas into feasible business models and get you access to funding sources.
To find business incubators in your area, explore the directory listing of the National Business Incubation Association (NBIA). In addition, other start-up accelerators like 500Startups, Ycombinator, and TechStarts offer small seed funding and expose start-ups to other investors via their networks.
5) Small Business Administration
Small Business Administration is a government agency that provides support for small businesses in the United States. There are similar agencies in almost every country. For example, the Polish agency for enterprise development is committed to helping Start-ups grow in Poland.
In recent years, several programs have been designed to stimulate the economy. Small Business Administration offers start-ups grants and loans, and these are available with fair terms.
6) Professional Social Networking Sites
LinkedIn is an excellent networking site to find investors. Also, several professional networking sites are launched to connect ventures with investors. Interestingly, they’ll connect you with investors looking to participate in the global business environment, exposing your products and services to their region. Professional social networking sites to search for investors’ connections include Cofoundr, Startup Nation, Meetup, EFactor, Plaxo, and Xing.
What Investors Look For In Startups
When searching for investors, what key areas should start-ups focus on and emphasize? Explore signals that will help investors invest in your business.
1) Passionate Founders
Investors are looking for passionate founders. Problem-solving founders that believe in the products and services they offer. Your passion must be deep. Regardless of the challenges you face, you must be willing to say “no” repeatedly and keep forging ahead. What is more? Investors are searching for entrepreneurs ready to invest their money too. This demonstrates belief in the products and services they are offering.
Investors want start-up founders to demonstrate that they have marketable products and services. Why not start working on your business idea and try to attract investors later? Demonstrate your ability to sell. Make it evident to prospective investors that you are ready to grow your start-up, and you'll make an excellent entrepreneur. In fact, a "proof of concept" must be shown to investors.
3) Significant Market Size
Not every product will have a global market like the iPhone. Nevertheless, to attract investors, start-ups need a significant market size. With a significant market size, you'll convince prospective investors that there will be favourable market for your products or services. Many investors will associate the value of your start-up with your market size.
4) Product Differentiation
Investors need to know what sets your business apart. If you are entering the market with an entirely new product or service, you would not have to worry about product differentiation. However, if you are going into an existing marketplace, then you need to be unique. If other products offer quality but are expensive, your start-up might offer affordable prices with value! The uniqueness might also be in your product's design.
5) Team Member And Delegation
Investors want to know that your start-up has enough trained employees handling key areas. Your start-up must have experts in the market you are entering. In addition, investors are interested in start-up operation control. They want to know if a start-up has established operating policies to control the business and sustain the investment.
By implementing the suggestions outlined in this article, you can quickly locate reliable investors looking for projects to fund. Take small but impactful steps. Skillfully pitch ideas to potential investors. As you work to find your dream investor, keep in mind that your investor is searching for an experienced entrepreneur with a track record of leadership and high performance. They'll do thorough research on your start-up and background. So, before you meet one, prove that you are indeed ready!