Starting up a business might seem quite interesting especially with planning and all. But one of the most important factor that you really have to consider is ‘How do you want to raise funds’?
There are a lot of ways you can raise funds for your startup business either through getting investors to key into your project or getting loans, whichever works fine for you. Here we have highlighted 5 ways to guide you while searching for investors for your startup:
1. Get Financial Support from Family or Friends
Family they say comes first which could be an easy way to get funds for your startup. You can decide to discuss your business ideas and needs with your family requesting for a loan or investment funds (which means they could decide to be stakeholders in your business; share profits and risks with you).
While doing this don’t be too casual in your approach with your family or friends; just like you would approach other investors, do a proper pitch, talk about your business plans/ideas: How you intend to make money back, your marketing strategies and every other thing.
Most importantly, be very honest when doing business with family or friends because any mistake could cost your relationship or leave a lasting effect.
2. Apply for Small Business Loans
Some agencies volunteer to give out loans to small and mid size enterprises (SMEs). Be on a look out for these agencies; prepare your business plan/proposal and do well to apply.
3. Look out for Angel Investors
An angel investor is someone who wouldn’t just invest in your startup but would also literally ‘sit on your shoulder’, give you business advice, offer mentorship and also connects you to their own network of contacts.
4. Personal Efforts
Asides looking around for investors, why not get them to look for you instead? With the help of your personal marketing effort by putting yourself out to where they can find you.
5. Professional Social Networking Sites
Speaking of putting yourself out there, a lot of platforms are accessible that would help connect you with investors across all industries and business segments; where you can also find foreign investors that would want to work internationally, which takes your product or services to different parts of the world. So why wait? Get connected to networking sites such as LinkedIn, Cofoundr and other social networks.
You can also sign up to our network and connect with investors from different fields.