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.
4) INVEST IN YOUR OWN BUSINESS FIRST.
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?