How to choose investors that are right for your business
Searching for investors is not an easy task. Many entrepreneurs anticipate that they will require some type of outside capital for their business at some point, especially in the early stages. Word of mouth can be the initial way to find that investor who is just as excited about your vision as you are.
1. Keep it in the family
Those who are closest to you, love you and believe in you. Family and friends can be the best investors since they probably know all about your business already. In most situations there are no interest fees and a high level of trust. If you are both passionate about your concept and there’s extra money for a piece of the pie, why not keep it in the family? Of course it has its downfalls and yes, if things don’t work out there is a chance of relationship breakdown. Be careful when choosing the people you approach. Maybe pick a family member or friend who has invested in businesses before and understands the pros and cons.
2. Linked In
Connecting with other business owners that understand what you have to offer and have observed your brand through social media can be time well spent. LinkedIn is a site that allows everyone in the workforce to showcase their skills. Imagine thousands of connections at a touch of a button. It’s a valuable resource that you won’t want to miss out on. Other social media sites like Facebook, Twitter and Instagram can also be valuable in your search for an investor. You never know who will be interested in what you have to say.
3. Angel investors
Ever wonder why these type of investors are called Angels? It was a term dubbed when wealthy people invested in theater shows on Broadway. The idea has spread to all categories of business and is mainly for start ups or expansions. If you’ve watched the show “Shark Tank” you will have an idea of what a more aggressive Angel would be like. However as strong, independent women it is necessary to point our arrow towards what is essential for growth and make the decisions that are right for the company.
4. Venture Capitalist
An angel investor is usually a single individual whereas a venture capitalist is a firm that invests other people’s money into potentially successful, yet high risk businesses. They usually want a higher ROI (return on investment) as well as a large portion of the equity.
With these options I encourage you to consider using an investor if duty calls for it. Spend time and effort in networking with other driven entrepreneurs, especially women who can support you through the hard times too.