Roping in Investors

By : Growing Business
Published 22nd April 2013 |
Read latest comment - 11th June 2013

How does one go about roping in investors for a business? What's the procedure to follow?

alicemenezes
Comments
Why do you ask?

indizine
indizine

How does one go about roping in investors for a business? What's the procedure to follow?

I will also be interested to hear people's experience of this. I am producing an educational book this year and will need to seek investment at some point.

Paul in China

I will also be interested to hear people's experience of this. I am producing an educational book this year and will need to seek investment at some point.

This day and age, it's never been easier. Have a look at crowd sourcing. If you have a genuinely good proposal, then go to someone like crowdcube.com

Otherwise its the more traditional route of flirting with various angel investors.

Either way, make sure your business plan is first class, the numbers add up, and you can handle the pressure of having outside people having some of your equity. Plus you must have a clearly defined exit strategy, as most investors are looking for a clearly defined return.

But raising money doesn't have to come from investors, why not keep your equity and get a bank loan. If your business plan stacks up, regardless of what the media are saying, banks are lending money.

Another route is crowd funding, similar principle to crowd sourcing, ie the power of the crowd making small investments, but this is a straight forward loan, so no equity loss. Check out fundingcircle.com becoming more and more popular with small businesses.

Steve Richardson
Gaffer of My Local Services
My Local Services | Me on LinkedIn

I think when you have a awsome product or idea, its very easy to find.

There are a lot of people whit a lot of money, but you need a very good idea.

Crowfunding is sure a nice way.

But its hard when its your first project, so you can say : i know what i am doing.

How much money you need ?

Germanguy

If you have a credible business you could try The Funding Circle businesses are lent money from ordinary investors and banks have no involvement. Its good for investors too, providing they spread their risk of investment over several companies, obviously there is a risk involved just as there was by letting Northern Rock look after your life savings...

Thanks,
Barney

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