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How to get investors to fund your business

businessmeeting26668412.jpgOne option you have for financing your business is to use investors. Investors, whether they are angel investors or venture capitalists, will provide you with the funding that your business needs to get started. While there are plenty of investors around that are interested in investing in businesses, the chances of finding an investor without doing anything is slim to none. As a business owner if you want to use an investor to help your business gets started, you are going to need to do a few things to attract them to your business.

Here are the steps you will need to follow in order to attract investors to your business.

Step one:
You will need to have a business plan ready for the investors to look at. When it comes to looking at a business plan investors are going to want to see an actual plan that is written up rather than just hear about what you have in mind for your business. The reason for this is that when you have a business plan in writing the chances of following the business plan are higher because you have committed to it in writing. If you just have ideas in your head it is easier to change course, when only thinking about business plans things can change at a moment's notice, nothing seems to be concrete.

Step two
To create a great business plan you are going to need to do some research, the more time you put into your business plan the better it will be. The thing about creating a great business plan is that your business plan is going to be a roadmap for your business to follow; it is going to dictate what steps your business is going to take to accomplish the goals you have in mind. For example, your business plan is going to discuss your marketing goals, and the type of marketing strategies you plans to use to get there.

Step three:
You will need to keep a record of how your business is currently growing, if you plan to attract investors to help expand your business. If you are trying to attract investors to get your business started, you will need to include in your business plan how you expect your business to grow. When tracking how your business is growing you are showing the investors that you are able to meet the goals that you have set for your business. Keeping track with written records shows proof to your investors about what you are doing.

Step four:
You will need to have financial statements for your investors to look at. If you have been in business for a while, you can use actual financial statements for your business, if your business hasn't gotten started yet you will want to have estimated financial statements for your business. The financial statements will show your investors further proof that your business is growing. These statements will also show what your business is going to be capable of achieving. When showing your investors your financial statements you want to have healthy financial statements for them to look at because investors are more likely to invest in healthy companies rather than companies that are in a financial crisis.

Step five:
Once you have gotten the investors interested in your business you will want to show them a written agreement. The written agreement is going to dictate the terms of the investment and an exit strategy that will detail the process that is needed for the investment. A written agreement is important because it shows your investors that you are serious about the investment, and that you are prepared to take the steps required to prepare for it.

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