Finding an investor for your company provides you with the seed money you’ll need to start the business. In exchange for investing in your company, most investors receive a percentage of the sales or company stock. Finding an investor for your company may be harder than it sounds, but there are some ways to start locating and convincing investors to buy your business.
Write a business plan. Before trying to find investors write a business plan. A company plan is a published guide of your company including the point, the startup costs, expenses, sales forecasts and other information to get the interest of investors.
Make a set of possible investors. Add people you understand to the list who have money to invest and may be prepared to have a risk with your company startup Gohar Asif Ali. Friends, family members and business owners of related businesses are the best places to start. As an example, if your company involves a pc software product, then other software companies may be interested in investing in your company.
Locate business investors on investor websites. Lots of investor websites exist, where business startups can seek out investors (see resources), which may be called angel networks. If you do not have someone you understand personally that can invest in your company startup idea, you are able to typically find possible investors through these networks.
Develop an investor presentation. Compile a speech or pitch presenting the business idea for convincing investors to buy your startup. Include information in your presentation which includes what the merchandise or service offering for the business is, the expense involved with starting the business, what sort of demand there is available in the market for the item and just how much the company stands to create in twelve months, 36 months and so on.
Contact the possible investors. Schedule a time to generally meet with and make your presentation to each investor on your own list.
Present your company idea to investors. At the meeting with the investor, pitch your company by providing your presentation and providing a copy of your company plan to the investor. Answer any questions the investor has about the startup and tell the investor what is set for them such as for example shares of the company stock or a percentage of the sales.
Sign an investor agreement. Once you see an investor, put your agreement in writing. You can find general agreement templates online or utilize a business attorney to help you set up a legally binding contract for both you as the business owner and the investor to sign.