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Oct 25, 2011 9:39 AM
Finding an investor to your business provides you with the seed money you'll want to start the business. In return for purchasing your business, most investors be given a percentage of the sales or company stock. Finding a venture capitalist for the business might be harder than it sounds, but there are a few methods to go about locating and convincing investors to purchase your organization.

Write your own business plan. Before looking for investors write your business proposal. Your own business plan is often a written guide of your business such as the purpose, the startup costs, expenses, sales forecasts and also other information to achieve a persons vision of investors.

Make a list of possible investors. Add people you're friends with towards the list who've money to invest and may even be prepared to look at a risk together with your business startup. Friends, family and businesses of related companies are the best places to start. For instance, should your business involves your personal computer software product, then other software companies may be interested in investing in your business.

Locate business investors on investor websites. Many investor websites exist, where business startups can look for investors (see resources), which might be called angel networks. If you do not have somebody you already know personally that may fund your business startup idea, it is possible to typically find possible investors with these networks.

Develop an angel investor presentation. Compile an address or pitch to present the company idea for convincing investors to get your startup. Include information in your presentation that includes exactly what the products or services offering for your clients are, the price involved in starting the business, which kind of demand there's looking for an item and just how much the business stands to generate a single year, 3 years etc.

Contact the possible investors. Plan a time to meet with to make your presentation to each investor on your own list.

Present your company idea to investors. In the selecting the investor, pitch your company by providing your presentation and providing a duplicate of your respective business strategy to the investor. Answer questions the investor has about the startup and tell the investor precisely what is looking for them such as shares from the company stock or even a percentage of the sales.

Sign a venture capitalist agreement. Once you find an angel investor, put your agreement on paper. You will discover general agreement templates online or work with a business attorney to assist you draw up a legally binding contract for both you because the business owner as well as the investor to sign.
Posted by valeriahall677 | Oct 25, 2011 9:39 AM | Add a comment