Finding financing for a company is one of the main concerns of entrepreneurs when they start a new business project. Therefore, if you are an entrepreneur and want to find investors to create a company, keep reading this post where we provide you with the keys to getting an injection of capital. Pay attention, because we explain how to get investors to open a business.
To begin with, if you are going to look for investors for entrepreneurs, you should be clear that they look above all at who is behind the business idea, at the idea in question and, above all, when they will begin to enjoy the return on their investment. investment.
So, when you go on the hunt for financing, do your best to prepare an attractive presentation of the idea you are selling and generate expectations. In addition, it is essential that you have very studied the figures: how much you need, for what, for how long and when will it start to bear fruit. That is, create a seamless business plan that generates confidence in potential investors.
How to find investors to create a company
If you are looking for investors for a startup, we suggest that you first try to have your own resources, develop the idea and the business as much as you can according to those resources and from there, when the idea begins to become a reality, take the initial steps to start a first round of attracting investment.
Currently, there is no longer only the option of resorting to private investors for business projects, since thanks to new technologies, mainly the internet and social networks, it is easier to launch a crowdfunding campaign with which to raise money.
Keys to get investors
To launch yourself in search of investors, the first thing you have to do is show initiative, know very well what you offer, what you intend and who to contact in each phase of development of your project.
In an initial phase, it is convenient to resort to three types of investors: those who respond to the ‘3F’ categorization (family, friends and fools); business angels and crowdfunding platforms.
You can also go to private investors for business projectors, such as business angels, who are individuals who invest a fraction of their capital in starting up a project. Their contributions do not usually exceed 50,000 euros and they intend to achieve a very high return. They actively participate in the development of the project, either by providing contacts, knowledge or experience.
To finance yourself through crowdfunding, you must present your project to a digital platform in which investors choose which projects to finance through shares, participations or income.
In a more advanced stage of development of the project, you can go to business incubators or public financing. If you choose to go to an accelerator, check that it is specialized in your sector, so that it can advise and train you, and can redirect you to another suitable and feasible source of financing.
In a growth phase, that is, when your project is a successful reality, it is best to try to approach professional investors such as family offices, which are companies that manage the investment of large fortunes by participating in the startup to achieve a high-cost effectiveness.
Also, at this point you can go to a venture capital, which operates more with risk capital that invests in exchange for a percentage of the company. Normally, they usually impose being present in decision-making or boards of directors.
Whether you are looking for private investors, or you plan to use family, friends or public financing, you must be clear that the main thing is to address one or the other depending on the stage of development in which your company is . For this, it is necessary that you carry out a study of all the options available to you and choose the most convenient through a financing plan that, in addition, explains what are the ways to repay the borrowed financing.