answersLogoWhite

0


Best Answer

== == Sources for finding investors

Angel Investors

Venture Capital

Bank and Micro funds

Friends and Family

Government funding

Self-Financing

Business Incubators

International Funding

Community Development Financial Institutions

Finance companies

Private Loan Guarantees

Short-term financing

Public funding sources

Credit unions

Advance against future sales

Pre-Launch Funding

Royalty financing

Have you tried the bank yet? If you go to them with a detailed portfolio and show them that this business will make money, then they will most likely give you a small business loan. A start-up business is among the most difficult to get financed due to the lack of operating history. Therefore, it is in your best interest to try to self-finance the business for as long as possible, until you have established some type of record. The first step is to determine your start-up requirements by identifying all relative expenses that your business will incur during its start-up phase. Some of these expenditures will be one-time costs, such as a security deposit for rent. Other costs will be ongoing such as monthly utilities, insurance, etc. Once you have properly identified your "realistic" start-up costs, you can determine whether or not you have the ability to support the business on your own through the initial start-up period. If not, you do have options. Start by asking your friends and family if they would be interested in investing. Be careful. You don't want to cause any hard feelings or place a financial burden on anyone close to you. Your next option is to take a look at what you own (personal assets) that could be used as collateral (house, land, rentals, investments, etc.) for financing the business through a traditional bank. Most lenders and investors require a business plan, so be sure to have one available. Typically, bank financing is not available to start-ups unless fully collateralize by deposits/assets from the owner(s) of a business. Even then, the bank will be reluctant unless it has complete confidence in the principal and/or management team. If you are turned down by a traditional bank, you can then approach the Small Business Administration (SBA). If your start-up is capable of supporting a large and growing market, you might be able to win over an angel investor or a group of venture capitalists. This is a tough undertaking and cannot be approached by the lighthearted. At the seed stage, funding usually falls in the range of $50-100k. Networking is the best way to find an investor. Ask you accountant, lawyer and business associates for referrals. Personal recommendations are often the only way to get your foot in the door of an investor. You can also visit after-hours business networking events. Check with your local Chamber of Commerce. They are a great source for all business related information and might be able to point you in the direction of an angel or VC. The internet is yet another option.

I fully agree and would like to add you can also try to find a business partner that has assets they can invest. You do not only get the money but a partner as well to help making it easier to take some of your business hurdles.

User Avatar

Wiki User

โˆ™ 2009-07-11 09:22:26
This answer is:
User Avatar
Study guides

What does ergonomics mean

What are the feasibility study and define each

What are the principles of ergonomics

Who organizes manages and assumes the risk of a business or enterprise

โžก๏ธ
See all cards
4.47
โ˜†โ˜…โ˜†โ˜…โ˜†โ˜…โ˜†โ˜…โ˜†โ˜…
34 Reviews

Add your answer:

Earn +20 pts
Q: How do you find investors for a start-up business?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Where can one find Business Startup Financing online?

One can find Business Startup Financing at a website source called Entrepreneur and Entrepreneurs (not to be confused with the first website name). Both sources give information on Business Startup Financing.


What should the equity be for a small business?

Raising money through equity investors allows you to use your cash to pay business startup expenses rather than large loan payments.


What is startup business?

starting it


What is the Importance of investors in a firm?

Investors provides the funds (business capital) which the company uses to operate. With no investors there is no business.


Where can someone go to find business investors for a business start up?

Inn order to locate business investors for a business start up, you first must find people who are interested in your product and who have the money. You can, if lucky, go on Shark Tank, on television, or place an ad in a business magazine.


How do you start a business with no money?

By finding investors. Where are these investors


What role do investors play in your business?

Investors monitor the running of a business and protect their money


Where can one find business names ideas?

One can find in depth information on choosing a business name as well as tips and name generators on sites such as Entrepreneur, Startup Donut, Name Find and Small Business.


What would I requirements would I need to receive business startup loans?

What website does not charge for services? can you help find grants for women in business


What is the business owned by investors also known as stockholders?

A business that is owned by investors who are also known as stockholders, is a corporation.


What is a business owned by investors?

A corporation


People who put money into a business are?

Investors and Business Owners.

People also asked