Looking for an Investor for your Start Up? 10 Tips to Help You Find Investors

how to find investors for startup businesses

You've got an amazing idea but you need to find investors to make it happen. Unless you've been in the game for a while and already have been networking with people that are looking to invest, it might seem overwhelming when you're trying to get started.

You know your business is going to be successful once you get it off the ground but how are you going to make it happen?

Continue reading this article and we are going to give you tips on how to get investors for a startup.


Investors Are Out There

Before you get started looking for investors, you should know that they are out there looking for you, just like you're looking for them. There are people actively looking for great ideas to put their money behind.

The following tips will help you find them.


1. Be Prepared

You might not know when you're going to meet someone looking for an opportunity. Be prepared before you even plan on looking for investors. You never know when you might meet people like Courtney Sarofim and other well-connected individuals.

Figure out how much capital you need and be able to show investors exactly how you're going to get their money back. If you aren't prepared, you could miss out on a golden opportunity but if you are prepared, you might stumble upon an opportunity of a lifetime.


2. Just Make Progress

If you don't raise all of the money in the first round, that isn't a big deal. Once you get enough capital to get started — get started!

Work on getting your product together right away and sell other investors on being a part of the project by showing them how much progress you've made.


3. Look for Industry Specific Investors

You don't want to work with just anyone. You don't only want money. When you are looking for investors, you should look for people that are experts within your industry.

When you work with industry investors as your partner, not only can their money help you — their expertise can also help you. Finding people that have "been in the game" for a while will help you rocket ahead of any competition that might be going at it without help from someone in the industry.


4. Show Value and Take It Away

When you're looking for investors, you're more likely to get investors if you don't need one. If you know that you have a lot of other options, you can show the value of your company and take it away by nicely letting them know you have other options.


5. Don't Skip the Relationship

Investors want to invest with people they know, like and trust. While you don't have to know someone for years, it is helpful to build a relationship with people before you ask them for money.

Go out, be social and meet the people that can make a big difference in your business.


6. Minimize Risk

Investors don't want to invest with people that aren't sure about their projects and the level of risk. 

Investors want to know that you've minimized risk as much as possible.

Investors' goals are to get as big of a return as possible in the shortest amount of time.


7. Check for Similar Businesses

A simple way to find investors that are willing to put money into your type of business is to see who has done it before. Look at other businesses that are similar to yours and see who put money into those businesses when they were first getting started.

Many of these people already understand how these businesses work and understand the risks. Since they understand the risks and how they work, they are likely to be less worried about getting their return back because they already know how it is likely to go.


8. Understand that Investors Aren't the Only Way

When you know that investors aren't the only way to go, you won't come off desperate when you're talking to potential investors. Investors are one of the most expensive means of funding your startup.

Consider traditional loans and other means of funding before looking for investors.


9. Network, Network, Network

You never know who you know and who the people you know have in their network until you ask. 

Don't be afraid to let people know that you're raising capital. You might even find out that someone of the people are know are looking to put their money into something that is going to bring them a good return.


10. Know Your Stuff

Before you start pitching anyone, make sure you know your stuff. If you don't show how much of an expert you are when you're speaking to the potential investors, they are likely to pass you up. These investors don't want to spend time babysitting you so they can get their money back.

If you don't make a good first impression, they are going to go find someone else that does know what they are doing and put their money into their business.


Find Investors and Make a Difference

Now that you know how to find investors, it's time to make a difference in the world with your new company. Companies that are truly successful make a positive impact on the world and that can be you.

Feel like you need some additional help and information? We have many other articles that can help you on your road to a successful business. Browse our site, find your favorite section, drop a bookmark and come back soon for more great reads.

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