The most familiar ways of funding a start-up livelihood, are Frequently referred to as the 3 F's: Family, Friends and Fools! Actually, those are the blessing ways to receive initial investors for a start-up career. They are folks who understand you and be cognizant your capabilities and Testament hope you to convenience the beans wisely to make a reimburse on their investment. Whether they are not an alternative, or whether you carry already used their aboriginal round of income, you necessitate to bargain other investors.
Write a professional business plan, including your target customer base, marketing strategy and five-year financial projections. You should also have a one-page summary of the proposal that you can use to receive initial interest without people having to read the whole proposal.3. Look for potential investors in the network of people you know.
It is easier to enjoin for a larger bigness the fundamental day than to repay and quiz for expanded. Not onliest does the latter inevitably raise the question of what you did with the money, but it also calls into question your ability to budget and keep to a plan. You also need to decide how you are going to repay investors: Are the funds to be loans with an interest rate proportionate to the risk (10% to 25%) or will you give an equity stake in the business?
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Instructions
Find Investors for a Start Up Business
1. Endeavor gone how all the more you occasion and be realistic in your assessment.Not just friends and colleagues, but people you come into contact with in the course of your everyday life: dentists, attorneys, doctors--these people in high-paying professions often act as angel investors to new companies. Remember that most angel investors get local companies--they want to be able to monitor progress.
4. Talk to your banker and CPA and ask if they have anyone they can recommend for you to near. If you are a member of the local Chamber of Commerce, Rotary Club or other association, make sure you tell everyone there about your venture and ask them to spread the word. Have business cards ready to distibute out and have an elevator speech ready--this is 30-second explanation of your proposal that will tell people what you intend do, how you will do it and the benefits of investing.
5. Do an Internet search for phrases such as "angel investors" and "start up funding" and check out sites such as Prosper.com that act as a clearing house for investors and businesses needing funds.
6. Persevere in your efforts--you will probably get turned down scores, if not hundreds, of times in your search for investors. Ask everyone who does turn you down if they know of anyone who might be interested. Above all, don't get disheartened--if your business idea is good enough, someone will recognize that and pay for it.
