How to find investors for your business

Many business owners are finding that it is extremely difficult to obtain financing from traditional lenders. This has led more and more business owners to turn to using equity financing for their business. This can be especially beneficial for small business owners who don't have the credit history and financial resources that many lenders are looking for. However, there are certain things that you will need to do in order to attract investors to your business. While there is no one size fits all solution for finding investors these tips can make your business more investor attractive. Here is what you need to know about how to find investors for your business-

- Know what potential investors will be looking for-The first step to attract investors for your business is to keep in mind what they are looking for. Most business owners have an emotional attachment to their business and may need some clarity in order to see it through the eyes of a potential investor. You will need to have a clear idea of what you can offer your investors and why they should put money into your business.
- Make your business attractive to potential lenders-Once you have an idea of what a potential investor will be looking for then now is the time to act on it. Does your business need repairs and some physical maintenance? Do your books need to be caught up? Are short on staff or have other needs within the business? Do you need to work on inventory management? Whatever the issues are now is the time to work on making your business look as attractive as possible for a potential investor. If you take the time to make your business look as attractive as it possibly can you are increasing the chances of getting investment money.
- Write an investor worthy business plan-The bottom line is that there is no substitute for a well researched and well written business plan. No matter how great your business looks a potential investor will pass it on by if you cannot show them a business plan that will make him or her want to invest in your business. Your business plan is the operational instructions for your business. You will need to develop your marketing and sales strategy, identify your target market, and use your business plan to show that you and your management have the experience and expertise to make your business a success.
- Develop a presentation-It won't be enough to just have a business plan. Most investors will want to see a fully developed presentation that shows why they should invest with your business. You will need to take the time to put together this presentation in the most polished and professional way possible. There are many online sites that can help you design a program that will be interesting and attractive to potential investors. This presentation should clearly show how you will use the money, how you intend to make your business successful, and how you will provide the return that the investor is looking to get.
- Be prepared to go the distance-The bottom line is that finding an investor while possible can be a difficult and time consuming challenge. Business owners who are looking for investors find that they need to be both patient and persistent. It is important to understand that you may have to look for awhile before you find the right investor for your business. However, if you do stick with it you can ultimately be successful in getting the investment money that you are looking for to make your business a success.