Once you have chalked out a feasible business strategy for your startup and you have determined how much funding help you would be requiring and how the funds would be allocated, it is time you looked for interested investors to fund your business. You must keep in mind that you might be required to speak to numerous investors before you come across someone who is interested in your startup and who seems just right for your business. We know of many startup owners who are now running successful businesses, actually went through a tough time knocking at several doors before managing to get funding. Here are some effective tips so that your funding process is less difficult and a successful one and you end up identifying the best investor for your dream project.
You could identify an angel investor who would be providing your business with the required funding assistance and at the same time act as your support system offering solid advice, mentorship, and even provide easy access to his network of contacts. You could start looking up Angel Capital Association, Funded.com, and even Angel Investment Network. These networks boast of literally thousands and thousands of investors willing to provide the relevant information on the kind of investments they actually seem to be seeking.
If you are looking for a regional investor near you, you could tap Angel Capital Association that is known to be offering a directory listing as per the platform type and area. Moreover, groups from the City Chamber of Commerce have begun partnering with angel investors for stimulating new business avenues for that city and that would include Chicago, Los Angeles, and New York.
Online Lending Platforms
Today, there are several restrictions related to getting bank loans for your startup so brand new and effective solutions have cropped up in the form of online lending platforms. These may include non-conventional lending sources, peer-to-peer platforms, or large investors who wish to provide financial support to small businesses and gain profits primarily from the lending terms. In this context, since you are starting your own business, you must understand all aspects of debts and efficient debt relief and debt management techniques. You must browse the Internet for debt settlement reviews online to learn more.
Reputed and reliable crowdfunding sites would be providing access to numerous diverse kinds of investors directly from the public in general who are interested in participating in the big campaigns like Pererbackers, Indiegogo, or Kickstarter to the philanthropists with a vision in life to assist others in fulfilling and accomplishing their dream to even the accredited investors looking for novel ideas for funding like OurCrowd. Each crowdfunding site is supposed to be well-focused and has its own techniques of incentivizing and motivating investors. You need to do a thorough research and meticulously assess which one aligns best with your specific aspirations and goals.
Accelerators & Incubators
Your startup is supposed to be your baby. So obviously, you would like the idea of it growing and flourishing. As such, you could work with an accelerator or an incubator that gives you a plethora of investor resources for seeing your business grow, prosper, and succeed eventually. These investors are predominantly keen on taking on a pivotal role in translating your dream idea into a feasible business model and they are ready with the finances to facilitate the process.
The accelerators and incubators are known to even provide a physical space for setting up your office and this facilitates working with you directly. As the space offered to you is part of a building that is shared by some other startups, this could be a wonderful place for exchanging brilliant ideas and growing together. The NBIA or the National Business Incubation Association offers a directory listing for helping you locate any business incubator member near you. They could be wanting a piece of the business in exchange for the funds provided so, you need to take a firm decision about exactly how much you wish to do away with.
Small Business Administration
Conventional sources such as Small Business Administration are supposed to be valuable funding sources as these smart programs have actually been developed recently for stimulating the economy. They predominantly provide small business grants and loans and these could be just right for your requirements. Moreover, they offer fair terms without harboring any expectations that they would be getting a stake in the business. They do not interfere in your business.
Professional Social Networking Sites
Apart from LinkedIn that is still regarded as the best destination for finding investors for your business, several professional social media platforms have come up that could help you in connecting with all kinds of investors across practically all business segments and industry specializations. Some of these professional social networking channels would be helping you to successfully connect with investors from other nations who wish to be a part of the overall global business landscape. Some well-known professional social networking platforms for investor connections are Xing, EFactor, Plaxo, Co-founder, Startup Nation, and Meetup.
Private Equity Firms
Regarded as a conventional source of investor funding, the private equity firms would be providing you with abundant funds in terms of investment basically to all those startup businesses that are in their infancy stage but have huge growth potential across an incredible spectrum of industries. The underlying intention is to sell their stake after some time maybe after just a few years for reaping the profit from providing funds to your startup.
Personal Marketing Endeavor
You may locate some good funding sources through your consistent personal marketing endeavors. This implies placing yourself strategically in such a place that it becomes easier for investors to locate you, including social media platforms, websites, conversations on Quora, traditional media outlets, personal blog posts or even guest posts on certain established blogs.
It could be quite easy to locate a family or friend who is willing to fund your startup because they know you, trust you, and have faith in your capability and authenticity. They are even passionate about seeing you succeed in your mission. However, if you are seeking financial assistance from friends or family please keep business issues separate from your personal relationship. Moreover, do not lose heart if investors are declining your funding requests. It only implies that you still have not come across the right one for your business.
Amy Walsh is an experienced and skilled business consultant and Financial Adviser. She helps clients both personal and professional in long-term wealth building plans. During her spare time, she loves to write on Business, Finance, Marketing, Social Media. she loves to share his knowledge and Experts tips with her readers.