Finding investors for your small business

NATION – If you’re starting a new business or growing an existing one, you may find yourself in a position where you need some outside funding to get to the next level. Read on to learn how to find investors for your business, and some tricks for preparing to meet them.
Angel investors are outside investors who invest a certain amount of cash into your start-up or established business. In return, these investors receive a stake in your company, and can grow their investment as your business grows. There are angel investors who specialize in a range of businesses, from flashy tech start-ups to brick-and-mortar shops. You can consult a directory of angel investors to get more information about individuals who might be interested in working with your brand.
Start-up incubators are ideal for small start-up firms. As the name implied, these unique communities are created to incubate fledgling businesses in their early days. Often, incubators are comprised of multiple small businesses and some mentors or guides who help business owners get through the toughest days of managing their new brands. While they participate in the incubator program, small business owners get a co-working space to work in, and maybe even a little seed money. In return, the incubator leaders receive a share in each of the small businesses.
Traditional banks aren’t usually the first thing that comes to mind when small business owners consider funding. And it’s true that a traditional bank loan isn’t an option for many businesses, especially during the first few years of operation. However, for established businesses that need a little funding to grow or expand, traditional bank loans are a safe, manageable way to get those new funds.
Crowd funding is a relatively new way to approach the business funding puzzle, but can be an ideal option for certain brands. The crowd funding process works by businesses sharing their ideas on online platforms, where viewers can then choose to opt in by donating a certain amount of money to the brand owners. In return, they might receive swag or other exclusive perks. Crowd funding funds are often locked until certain fundraising goals are obtained. If the funding fails, investors get refunded.
While it’s probably not the first funding source you have in mind, friends and family are a viable option for obtaining new business funding. Some business owners see success after family members invest money into their ideas, and other investors do well by soliciting small amounts from their pool of family and friends. This investment method certainly isn’t ideal for everyone, but in some situations might be a good fit.