America thrives on the entrepreneurial spirit, but most of the time having a great idea is the easiest part of starting a business. It is estimated that over 543,000 businesses are started every month. Of these businesses only 70% will last two years while about half will fold after five years. If you are starting a new business there are several steps you can take to greatly increase your chances of success. Regardless of what your market is you may be able to find an investor to provide monetary support for your new or established business.
The First Steps to Finding Investors
You might be surprised how many private investors are always looking to invest in new business. The first step to finding investors is by making sure that you have a solid narrative and pitch for your business. Your business plan should have realistic financial projections and goals for the next 3-5 years. Researching the current trends in the market is very important when drafting your business plan, so that you make can make accurately predictions about how your products or services will be received. The more tangible your business plan is, the better chance you will attract potential investors.
Where to Find Investors in Your Community
Once you have your plan cemented you can start doing research to find investors. One of the best resources for finding local investors is to interact with your local business community. Talk to business owners that you are friendly with and get in contact with your local chamber of commerce. Another good place to find potential investors are through trade shows and conventions.
Emulate the Professional Investor Relations Industry
Attracting investors is only the beginning. Once you have secured investors, it is time to insure that they remain excited about your business. Even if you run a small business you can take some cues from the larger investor relations industry. Many large companies hire investor relation firms to make sure that the intersection between the business’s interest and investor’s interests meet. While you might not be able to provide the same level of investor relations services as the large investor relations firms you can emulate some of their strategies. The easiest and most universal way to maintain shareholder relations is through email updates. By staying in constant contact with investors you will able to address any concerns as soon as possible.
Leave a Reply