Zebraheard

Helping entrepreneurs turn ideas into a business

How Do I Find Investors?


How to find investors 

If you are not able to go it alone or do not have family, or friends to help then finding investors could be at the top of your list. Often when I am asked this question I am looking at an entrepreneur with the  “deer in the headlights”  look.  It is perfectly understandable. The thought of finding investors and asking for money can be a scary thought.

First and foremost as an entrepreneur you must change your way of thinking.  If you have done your homework and researched your product or service you should have confidence in your plan. You must believe in yourself and your enterprise because as the saying goes, “If you don‟t believe in yourself no one will.”  Investors are smart, savvy people who can smell self-doubt or fear a mile away.  So before you approach anyone to convince them of your idea you must convince yourself first.

I could devote a whole book to this topic, but now let give you three or four places to start.

1.  Look into the local Angel Funding groups in town. Try doing a search on the internet for some Angel groups near you. Tell your story to your friends and family. If they are not interested then ask them if they know of anyone who may be interested.  You probably will get two or three more names from them.  Ask for an introduction or if you can use their name. You then need to contact them and ask to meet them for lunch. If they are not interested ask for two or three names of people they think that might be interested and ask for an introduction. Do you see what is happening? I call this the “Spider Web Effect”. You will need to talk to a lot of people to find investors. You find them by making a “Spider Web‟.

2.  If that does not work call a local business incubator Director and he should have contact information for the local Angel Investor Groups. Your local Chamber of Commerce will have that information as well.

3.  I have put financial institutions last because with the current economy (written in 2010) they have shown reluctance to loan money to small businesses. They will also more than likely require collateral for any loan they provide. If you are fine with that then try for a business loan from your local financial institutions. 

These are just a few of the top places to start. It is hard work and not easy to find investors. One other word of advice …develop thick skin. This process is not for the faint of heart.

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June 2, 2010 - Posted by | Entrepreneur | , , , , , ,

4 Comments »

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