A guide to getting small business investors

There are certain steps that will help make your small business more appealing to investors. Finding the right investors is the key to making your company more successful. Here is an overall guide to getting small business investors-

• Take the time to do your research and know the audience you want to attract-You need to understand that some of the "best" ideas lose their luster between the creation of the idea and getting it to paper. This process can be frustrating and overwhelming.The only way to avoid this is to cover all avenues of research in your business plan. This is so not only do you fully understand what you are getting into, but also so you can answer any questions that may arise. Keep in mind that you want to present your ideas so that potential investors can grasp the concept without over-thinking or speculating. You should also realize that if a similar product to yours, already exists, you should focus on the aspects that make yours different. Be sure that you pinpoint your target demographic, and the level of competition for that audience, and consider your return on investment (ROI). Remember that while the technology (or science, or mechanics), of an idea is important to explain, it is not as important as to whom the idea will be sold, how much it costs, and its competition. You need to be sure that you work on those factors, before you outline 10 pages dedicated to the uniqueness of the highly technical components that will power your invention.
• Understand that the numbers have to be real-While you cannot factor in everything; remember that your potential investors will want to see some real numbers. You need to determine as close as possible as to what future expenses you can expect in your small business. For example, if your small business is a food related business, or a seasonal business, you can expect higher prices at certain times of the year. You will need to take that piece of information, and factor it into your projected plans. You will need to clearly determine if your business a service industry, or an industry that will sell actual products? Decide what the core or basic project of your business will be. What services will be provided? Determine how your business will provide them. You will need to factor in anything in the market that can affect costs. Remember that for all of these numbers you will need supporting documentation. While investors understand about projections, they will be more likely to take you seriously, if you can back up what you are saying.
• Work as a team-You may think as a small business owner that you have to do it all alone. Yet the savvy small business owners, become large business owners by thinking outside the box. One way to do that is to work in a group with other small business owners, when trying to find potential investors. Having a group in on the idea, will allow you to be as creative as possible, while filtering or revamping the loose ends. You should not think of this as profit sharing, but think of it as a group of co-workers acting as a bouncing wall for ideas. In addition you need to remember that the face-to-face meetings, between entrepreneurs and potential investors do not come on day one. If an idea is worth hearing (and luck and timing collide at just the right moment), a well-written, thorough and appealing business plan can catch the eye of just the right person. And if it doesn't, try, and try again.