Steps for finding investors for your small business

Many small business owners wonder when it is the right time to find investors for their company. If you are a small business owner the bottom line is that finding investors requires some work and effort on your part. This means that you should be taking steps to work with potential investors even before you are going to need the money. The reason for this is that if you have done the right amount of preparation you will be better able to make a successful presentation to a potential investor right when you need to. There are certain steps that can help you in this process. By knowing what these steps are and following them you can increase the chances that you will be successful in obtaining investors for your business. Here are the steps for finding investors for your small business-

- Do the research-The first step to finding investors for your small business is to start with research. You will need to start looking for those investors who are most likely to want to invest in your type of small business. It can be helpful to reread the competition section of your business plan in order to get an overview of your entire market. This step can often stimulate ideas of who may be a potential investor. Once you do know the name of potential investors you may want to consider sending a sample of what your business has to offer in order to get their attention.
- Don't overlook networking-Networking is not just used to find additional customers for your small business. You can also use networking to find potential investors for your business, as well. There are many different networking events that you may want to attend in order to begin the networking process. These can include but are not limited to: industry events, trade shows, and events in the business community. You should also make sure that when you do attend these types of networking events that you have plenty of business cards to hand out to potential investors.
- Do try a blanket mailing-It can also be helpful to try a blanket mailing. There are certain times when investors may consider an unsolicited investment opportunity so you shouldn't hesitate to let potential investors know that you want to talk to them. However, keep in mind that in order for this to work you will need some personal contact information. A business plan that is addressed to "Whom it may concern" won't generate the interest you are hoping to get. This means that you will need to carefully research before you send out your business plan to potential investors.
- Don't get frustrated-The bottom line is that finding an investor for your small business can be a long and time consuming process. Small business owners will need to be patient and willing to put in the time and effort that will be needed in order to obtain investment financing for their company. You should not let setbacks and rejection keep you from continuing on with your investor search. If all options fail consider turning to the internet in order to generate online interest for investment in your small business.
- Do consult with the people that work for you-From your employees to your attorney the people around you may have ideas about where you can find investment money. You should also talk with the business manager at your bank and your accountant. You should not hesitate to consult with everyone around your for ideas and recommendations for small business investors. You may find that your potential investor was actually much closer then you ever thought.