Black Owned Business Network


How can I find an investor for my business?  Will you invest in my business?  What can I do to get an investor to invest in my business.  These are questions that many Black Owned Business owners are asking.  But it seems that many business owners ask these questions prematurely.  Business owners must go through the proper preparation before even considering an investor. 

1) Know the risks of having an investor.
Some business owners see having an investor as a way to gain capital fast.  They don't consider the risks involved. 

Inverstors are people who have alot of money that they use to make them more money.  They buy shares or part ownership in a business with the hopes of making a profit within. a defined time period.  When they make their money, their goal is to sell their shares and move on to another investment.  The problem usually comes when the investor doesn't make their money fast enough or they sell.  Investors usually have some say so in how the company is run, including the business owners salary.  Yes, they can put a cap on the owner's salary.  Most importantly, they make decisions regarding the company that the business owner may not always agree with.

2) Have a proper business plan
Investors want to know the ins and outs of your business.  They want to know what your expenses are.  They want to know what your income is.  Most importantly, they want to know what your projected profit is.  Do your research?  If you are lucky enough to get your business in front of an investor, don't waste their time. Be prepared to answer questions about your business.

3) Know how you will use the investors money.
If you get the chance to meet with an investor, have a detailed plan on how you will use their investment.  Be prepared to discuss this with the investor and be open to suggestions.

YOU must invest in your business first.  Yes, you should invest time, but don't forget to invest your own money in your business.
There's the saying that it takes money to make money.  There are many types of business owners out there.  Some ownes start with thousands or millions to invest into their start-up business.  Others only have a couple hundred dollars.  Amongst both type of business owners, there are those that are successful.  For the successful business owners, you will find that they all have something in common.  They all invested money into their business.

Investing in your business means that you find a way to fund part of your business expenses, whether the money comes from savings or if you start small and reinvest your business profits.  Investors want to know that you believe enough in your business to try to make it successful.  Think of it like this, If you won't invest in your business, why should they?

What advice do you have for business owners who want to find investors for their company?

Published in Business Tips
Every successful entrepreneur eventually comes to the point where they have to quit their day job to focus on their own business. Before you decide to take that big leap, make sure that you take steps to prepare yourself for your journey ahead.

  1. Stash some Cash: Have at least six months worth of living expenses saved. This is your backup plan. If you are not making enough in your business, these funds will pay the bills while you work on building your business
  2. Register a domain name: Before you choose a business name, make sure that the domain name is available.  Once you find a domain and business name, register your business. Make sure you can get a domain name that accurately reflects your business name. Once you find a domain name that works best for you, register your business name.
  3. Buy Supplies and Equipment: If you do not already have everything that you need, then purchase your supplies and equipment after you have registered your business.  Remember that the business purchases you make after you have registered your businesscan be written off as tax deductions.
  4. Get a business checking account: Having the ability to accept multiple forms of payment is essential for any thriving business.  Don't limit your clients.  Having a checking account gives you the ability to accept cash, checks, and credit cards.  Most importantly, having a separate business checking account allows you to keep you personal funds separate from you business funds.
  5. Create a website:  Yes, it's good to have a Facebook fanpage, twitter account, and to be active in other social media platforms, but consumers still want to see your website as a way to verify that you are a real business. Get a PROFESSIONAL website before you start spreading the word about your business.  Your starting website should focus on answering two main questions:
    • What do you do
    • How you can be contacted.
    The website is an essential step when launching any business and is a step that should never be skipped.  .  It not only presents your business professionally, but it validates your business.  With the internet being so easily accessible, the first thing consumers do when they hear of a business is to search for it on the internet.

What steps are you taking to prepare yourself to quit your day job?
Published in Business Tips