Where to look for investors for your business

For many small business owners one of the most daunting challenges is trying to attract investors for their business.This is especially true in the start-up phase when most people need extensive capital to get their business up and running.After owners have exhausted their own resources (and often that of their family and friends) they look for additional financing from outside investors. But if can be difficult to determine exactly where to find investors for your business. You should be prepared to expend some time and effort to find investors for your business.Here is a guide that show some places where to look for investors for your business-

• Begin by talking with the executives at your bank.These are the people who deal with all matters involving money. They may be the most familiar with who is a potential investor. Do not hesitate to ask (even though you are not looking for a loan at this time) because part of their job is to know financial professionals in the community. The chances are quite good that if there is a network of potential investors in or near your community, they will know a contact person. You should also check with your bank officials for contact information for an investor group.
• Ask your accountant and your attorney- Do not underestimate your accountant and your attorney as valuable resources. It is there job (that you are paying them for) to advise you in all business matters. Because they are professionals in the community, they may know of networks of investors. At the very least, they may just know of others to refer you to that may be able to get you in touch with potential investors.
• Visit your local Chamber of commerce.They are very likely to have a list of local investor associations or venture capital networks that you can contact. Chambers of Commerce can be a wealth of information for start-up small businesses.
• Look for a Business Incubator in your local area-Most likely your Chamber of Commerce or a local college or university can tell you if your town has any business incubator associations that are operating in your area. If you have one nearby, they undoubtedly have access to networks of potential investors as that is one way they help the firms in their incubators attract financing. Contact the association of business incubators and go talk to them and let them help you make contact with the potential investors they know.
• Check out the universities in or near your area-This can be a very valuable source for finding potential investors. First, this is because the university may have a program in entrepreneurship or small business management. If it does it may produce high levels of new businesses and have affiliated investors. It is worth a visit to talk to the people at the university and they can possibly hook you up with a potential investor. The Small Business Development Centers, (which are located at local universities), are another valuable source of information about potential investors. Make sure that you talk with the Director of the local Small Business Development Center and you may be able to get in touch with the local group of investors.
• Check with the regional and state economic development agencies-You will want to gain as much information as you can from your regional and state economic development agencies. They can have a wealth of information because their jobs are to increase small business development activity. There is a very good chance that they know the networks of investors and venture capitalists in your local area and state.