When the stock & real estate markets are bad many investors look to put their money into small or start up businesses that they believe are poised capitalize on niches markets, emerging technologies and new societal trends.
To a start up business seeking capital these investors represent more than just money. Investors also bring invaluable business expierence, consulting & connections to the table.
Private Equity Firms
Who offer lines of credit to small business owners
Venture Capitalists
Professional investment groups who partner with entrepreneurs to provide funding, leadership, consulting & direction to growing businesses
Angel Investors
Private individuals who offer 'no strings attached' loans to start up business owners
SBA Loans
Government guaranteed business finance programs offered through banks
What Do I Need to Get Capital?
Different investors have different strategies & prefer different industries. However in general the following is very important to investors
Traction
Investors are less concerned with your 1% market share predications than they are with how much money your business has actually made. If your company has sales than that means you have your product or services is something the market demands
Scalable
Investors like to a see a business model that works & is profitable on a small scale. If your business generates a profit on a small scale it’s probably a smart investment.
Niche Market
In the beginning of your businesses life you should target you marketing towards a smaller demographic.
Unique Concept
Investors want to invest in a company that has ‘change the world’ potential. Competition is a healthy part of business but your business model should have some kind of unique advantage.
Experience
Real world experience is invaluable when starting a new business endeavor. Its essential to show that you have some kind of expertise related to your business. It’s important to demonstrate to the investor that you learn from your mistakes & coachable.
Complete Business Plan
If you are serious about your success you will need a professional business plan to present to investors.
Need help with your business plan?