Many businesses around the world have the potential to make drastic changes in World through their business. But one thing that stops most small businesses owner is the lack of cash.
If you are facing the same issue, and you don't know how to fund your small business you are at the right place. Because In this article, we are going about how to get investors for your small business in 2023.
1. Friends and family members
This is one of the easiest steps to fund your small business. Because it is easy to convince whom you already know as compared to the person whom you meet for the first time. But, you have to tell your friends and family members about the stake they will hold in a company when they invest in your business what are the risk and advantages of investing in your business, etc. You have to pitch your business idea to your family or friends in the same way as you will pitch if there is an investor. In this way, the chances to get investment increase to a large extent.
2. Angel investors
Angel investors are private investors who use their cash for investing in a small business venture in exchange for their equity. If they like your business idea and invested $10000 in your business for the equity of 20% and you sold your company after some years at $ 5 million then they will get 20% of it. A single Angel investor can fulfill all the essential cash requirements for your business to grow if he/she is interested in your business.
3. Venture Capital
In venture capital, multiple-person money is invested in a single business. They generally invest their money in a business that is a medium size or has a good revenue. They invest a large amount of capital in a business as compared to angel investors.
Which is good for small businesses Angel investors or venture capital?
Angel investors are good for small businesses one of the main reasons is that they generally invest in small businesses but they want more equity because there is a chance of failure is more. Angel investors are high-risk and high-reward people.
4. Investment from the same field
If you sell T-shirts then it's obvious that you have connections with other people who are also selling T-shirts. You can tell about your business to them in detail to get investment from them or can ask them if they know someone who can invest in your business. You can increase your chances of investment by answering these kinds of questions eg - how are you going to grow this business, how is your business different from other businesses in the market, and how are you going to grow their money? You can also add some of the questions by yourself that you think is necessary to tell them to increase the chances of investment.
5. businesses owner
You can ask other business owners to invest in your company who are using your product or service and generating good revenue. Maybe they want to invest but don't know where to invest. Here you can show your capabilities to them to get investment for your business.
Read also -
8 ways on How small businesses can reduce costs and increase revenue or profit in 2023
6. Online investment
In today's world, you can find almost everything online if it is a job, clothes, food, and many more. There are many websites you can find on the Internet which connect startups and small businesses to investors. For eg -
1. Our crowd
Our crowd is a website that helps individuals and institutions to connect and invest in the business. 192,000 investors have registered on this platform and investors have Deployed capital in 90+ countries. Investments in 322+ companies located in Israel, Canada, the UK, India, Hong Kong, Singapore, Australia the US, and have offices on 5 continents.
Some similar websites like -
Fundersclub, SeedInvest, StartEngine, Wefunder, etc.
7. Crowdfunding
In crowdfunding, multiple individuals' money is invested in a business venture.
It depends upon the individual how much he/she wants to invest. In crowdfunding, people get the opportunity to choose the business in which they want to invest.
You can raise funding through crowdfunding and use that money to grow your business if you take your business to another level through funding. Then you can use this example to raise capital for your business through crowdfunding, angel investing, etc.
8. Advertisement on a social platform
There is almost everyone on the internet. You can make Valuable content for investors and advertise it on Google, Youtube, Facebook, or another social platform. To get their eye and trust on you.
If you don't know how to make content and how to advertise it then, in this case, you can go towards freelancing. In freelancing, you can find multiple people who do mini-work and charge some amount for completing the work. There are many websites where you can find freelancers like - Fiverr, Upwork, PeoplePerHour, etc.
Relative searches:
1. How do I find a local investor for my small business
Through contact with other business owners who are familiar with you. You can find a local investor. By asking them if they know about someone interested to invest in a kind of business that you have.
And another method is to advertise your business in your local area.
2. How do I get an investor with no money
For this, you should have an account on Facebook and have to join multiple groups where you can find investors. You can post content to that group about your business and message personally to group individuals who are investors. This process may take time. So you have to have patience.
3. What do investors look for when they invest money
Each investor has their perspective when comes to investing. Some see how much are you passionate about solving a problem. Some see how are going to 2x their money. Some investors also invest in a business when they relate their life.
4. How do I get connected to investors?
Diana Goodwin who is CEO of MarketBox and also won awards of the Telus $100,000 Small Business Challenge, Emerging Entrepreneur of the Year said “If you’ve been building a great business, getting out and networking within the local startup and investing community can be a great way to meet investors. Most of my meetings with investors developed by being out at an event and mentioning my business.”
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