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3 Ways To Attract Investors To Your Small Business

Posted on 2020-12-082021-03-15 By WebEditor No Comments on 3 Ways To Attract Investors To Your Small Business

Setting up a new business is an expensive proposition. Unless you are already independently wealthy, chances are you will need outside investment to grow your business and make it successful. If you are looking for ways to attract investors, follow these tips.

Table of Contents

  • 1. Explore Different Sources for Funding Your Business
  • 2. Show How You Can Grow
  • 3. Have a Co-founder

1. Explore Different Sources for Funding Your Business

You may think that you need to find an angel investor or a venture capitalist to get money to grow your business, but there are a lot more funding opportunities out there in places you might not think to look. Go to a business pitching competition for businesses and investors to meet potential investors. You may be reluctant to talk to friends and family, but if you have a solid plan and can show a real opportunity for returns, they may want to help. Finally, put your business up on crowdfunding websites to attract small investors.

2. Show How You Can Grow

Investors want to know how you plan to grow your business. Come to your meeting with potential clients with a plan to scale up your business with increased investment. Most investors want to make money on their investment, so show them how they will.

3. Have a Co-founder

Investors like to work with businesses that are run by more than one founder. Showing that you can already work as a team proves to the investor that you will be able to work together. Choose a co-founder carefully, someone who shares your passion and ideas for the business.

Once you have found an investor, be clear on what your business plans are and keep them in the loop on all decisions. Since they have contributed money to your business, they have a right to know what’s going on and to give input. Establishing a good business relationship from the beginning should help you for years to come.

 

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