Where to find an investor for a business

Where to find an investor for a business Business plans won’t automatically convince investors that they should fund your business.

It’s true. About 90 percent of startups fail, which means only 10 percent survive. There are many factors that will tran...
24/11/2021

It’s true. About 90 percent of startups fail, which means only 10 percent survive. There are many factors that will transform your startup idea into the business you’ve always envisioned. You need a fantastic idea that is unique in your specific industry, not to mention investors for your startup. You need a business AND marketing plan. And, most importantly – you need knowledge on how to raise capital and find investors.

An investment means family or friends would hold a stake in your company, and share the risks with you. However, with an...
24/11/2021

An investment means family or friends would hold a stake in your company, and share the risks with you. However, with an investment, you might be able to get more money upfront, and unlike a loan, you will not be paying it back in installments. Investors will get money only if your business becomes profitable.

But don’t be too casual about the way you approach this with family or friends, or assume that it’s a done deal just because you know these people. Do a proper pitch (using your business plan) and let them know when they can expect to make their money back. If they’re investors, explain the risks.

There is a downside to family and friends who become investors, as you are mixing business with pleasure. If the business fails, and their money is lost, the relationship may be strained, forever.

Develop or refine your business planI’m not saying you shouldn’t have a business plan. You should.Your business plan is ...
03/11/2021

Develop or refine your business plan
I’m not saying you shouldn’t have a business plan. You should.

Your business plan is an essential piece of the funding puzzle, explaining exactly how much money you need, and where it’s going to go, and how long it will take you to earn it back.

Investors will look first to a summary, and then a pitch; but if you get through that screening, they’ll want to see a business plan for the process of due diligence. And even before that, during the early stages, they’ll expect you to have a business plan in the background, for your own use.

Most commercial banks require a business plan as part of a loan application. A plan is also required for applying for a business loan guaranteed by the Small Business Administration (SBA).

Business plans sell investorsBusiness plans won’t automatically convince investors that they should fund your business.Y...
03/11/2021

Business plans sell investors
Business plans won’t automatically convince investors that they should fund your business.

Yes, a well-written and convincing business plan (and pitch) present your business to investors in detail; but they are investing in your business, not just a plan. Normally you have to have a team in place, have made progress toward idea validation, or—better still—traction (paying customers). So you’ll need to do a lot of work before you get investors.

Nobody invests in ideas or plans. There are rare exceptions, in which investors know an entrepreneur well and are ready to invest in them at an early stage. In that case, they are investing in the entrepreneur, not the plan.

Develop or refine your business planI’m not saying you shouldn’t have a business plan. You should.Your business plan is ...
03/11/2021

Develop or refine your business plan
I’m not saying you shouldn’t have a business plan. You should.

Your business plan is an essential piece of the funding puzzle, explaining exactly how much money you need, and where it’s going to go, and how long it will take you to earn it back.

Investors will look first to a summary, and then a pitch; but if you get through that screening, they’ll want to see a business plan for the process of due diligence. And even before that, during the early stages, they’ll expect you to have a business plan in the background, for your own use.

Most commercial banks require a business plan as part of a loan application. A plan is also required for applyin

Bank loans are the most likely option for funding a new businessActually, banks don’t finance business startups. Banks a...
03/11/2021

Bank loans are the most likely option for funding a new business
Actually, banks don’t finance business startups. Banks aren’t supposed to invest depositors’ money in new businesses, due to the potential risk involved. We’ll talk more about that in a bit, but more often than not you need some sort of monetary traction to acquire a bank loan.

Business plans sell investors
Business plans won’t automatically convince investors that they should fund your business.

Yes, a well-written and convincing business plan (and pitch) present your business to investors in detail; but they are investing in your business, not just a plan. Normally you have to have a team in place, have made progress toward idea validation, or—better still—traction (paying customers). So you’ll need to do a lot of work before you get investors.

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