|
|
Like this article? PLEASE +1 it! |  |
|
Entrepreneurs – Looking For Investors In Your Business – Here’s Where To Find Them
Written by: Lee ListerArticle Overview: You’ve got the great business idea, you are all set to start your new business – all you need now is some finance. So where do you find those elusive investors – or better still some no strings money?
 |
Free Download - What Type of Business Should I Start? By Lee Lister |
Entrepreneurs – Looking For Investors In Your Business – Here’s Where To Find Them
When looking for investors in a new business first seek out any grants or government assistance that your state, county or country offer – as this money is often subsidized and easier to obtain for a new business.
Your next stop would be the bank. They will be seeking to lend you money that is secured on some kind of collateral. A business loan is more usually for 2 – 5 years. I think that you are maybe thinking of an overdraft facility when you state repayment within a few months – but I have never had the pleasure of visiting Barbados – so it may be different there. A bank will not generally want to get involved with your business – just some confirmation that they will get their money back with interest.
The next port of call is an investor. Now these people are totally different to banks – in that that are actually investing in you and your business and they often want to get involved with your business as well. So let’s analyze this a little more.
What are investors looking for?
* In your business: They want a sound business or business idea with some kind of unique concept that they believe will rapidly move to profitability. They want a well thought out and credible business plan with realistic financials.
* In you: They want a hard working entrepreneur with good experience in the business area. They will look at your personality, your abilities and your past resume to see if your are the kind of person that can make a success of this type of business. Similarly they will want to feel that they can work with you – because they will be.
* From the loan: Investors will only want to invest in your business for a few years, often a low as one year. They expect to be able to obtain a good rate of return on what they see as a risky investment. They will also often require a share of your business as their security. If you are seeking a large loan – they will often request a seat on the board of your company so that they can exercise some kind of control on the business activities.
What they will bring to your company:
* Experience and Guidance: Investors often invest in areas that they know a lot about. They are obviously keen for your business to be a success as their return on their investment is dependent upon this factor. This means that they will often offer guidance and help to you as part of the package.
* Cash Injection and Cash Flow: Sometimes you can request a staged investment from an investor, subject to you reaching agreed deadlines. This not only concentrates the mind in your business development, but also ensures that money is available when you need it. Suffice it to say that cash is always welcome in a business.
Your business plan is very important. You need to prove that you meet all the requirements above, but you also have to include what is called an Exit Strategy. This basically answers and lays out in detail, the four questions that every investor will ask:
* What’s in it for me?
* How soon do I get my money back?
* How risky is it?
* How much will I make from this investment?
One last suggestion for you – if you have no actual experience of the customer side of a restaurant such as cooking or serving, then I would consider bringing such a person onto your team. Good luck with your new business.
How To Find An Angel Investor
Angels? Sure. VCs? Sure. But Not Both.
Who Are Angel Investors
Giving Up Salary for Equity After VC Funding
Entrepreneurs, VCs, and Peeing on a Burning Bush
|
About the Author: Lee Lister RSS for Lee's articles - Visit Lee's website  From an early age she began an unparalleled journey through business consulting that continues to span across the UK, USA, Europe and Asia. She has consulted for a considerable number of companies all over the world. Specialising in business change management, start up consultancy and trouble shooting. Lee's experience in marketing and internet marketing is also keenly sought after. She is a prolific published writer of books, ebooks and articles and can easily be found on major search engine and Amazon. Her books include: FastTrack Bid Management, Proposal Writing For Smaller Businesses, How Much Does It Cost To Start A Business, Entrepreneur's Apprentice and a series of Start My New Business books that do as they say in the title! Her major web sites are: Click here to visit Lee's website   Three Reasons to Write Articles and the Fourth Most Important One Autoresponders Heres Some More Unusual Uses For Them Show Me The Money What Your Business Plan Must Include What Do You Need To Do Before Tendering For Business What Type of Business Should I Start |
Related Forum Posts
New Small Business Topic
- Hello everyone,
I'm on the lookout for new topics to add to my site. We just launched a Franchising section and are planning Human Resources section. Do you have any thoughts for a new section?
Here's a list of what we currently have:
Angel Investors
Branding
Bank Loans
Business Coaching
Business Plan
Franchises (New)
Insurance
Legal
Marketing
Public Relations
Sales
Small Biz Loans
Venture Capital
Hi to all
- Hi there - have just joined.I am a serial entrepreneur at am really pleased to have found a place where like minded people get together - nice to find a forum on a topic I am passionate about with so many people contributing. Heres to our future success!
Paul
My entry
- 1. The Best Business Books Ever: The 100 Most Influential Business Books You'll Never Have Time to Read
- this is a fascinating book about the history of Business theory, and I'd recommend it to anybody.
2. The Big Book of Small Business: You Don't Have to Run Your Business by the Seat of Your Pants, by Tom Gegax. Ditto.
3. PADI: The Business of Diving Book
Okay, so this book won't be of use to anyone who doesn't want to start a scuba store, but I did, and this book was of course invaluable to me in reaching that goal.
Elevator Pitch in 10 Words
- "Winning Business Design For Aspiring Entrepreneurs Based On Their Idea"
A ton of Great Women
- You might want to profile Teresa Cascioli of LakePort Brewery. She has an amazing story! I met her at at the celebratory luncheon for the Profit/Chatelaine Top 100 Women Business Owners. The Top 100 list is also a great resource for inspirational stories of Women Entrepreneurs.
Share this article with your friends. Fund someone's dream.
Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.
by: 
Lesson #3: “Tell ‘em quick and tell ‘em often”
Searching for the Stars: How Yang and Filo Took Their Business to New Heights
Salesperson Wimp-Out: I Need Help 
February 2012 Top 100 Leadership Experts to Follow on Twitter
Please Stop Calling it Coaching!
Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
Why Marketing Outsourcing is Growing So Quickly
Resolving A Conflict Between Two Sales Staffs
Four Reasons Why Entrepreneurs Should Blog
Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.