Business owners often find themselves in need of additional funding. These funds may be required for expansion, upgrading equipment to more modern versions, developing new products, and so forth.
Some opt to secure a bank loan. However, this can be expensive, and there is always a risk of losing everything if the company fails. A much simpler and more reliable approach is to attract investments from other people. In this case, the investor consciously takes a risk by investing their funds. To protect their money, individuals will study the market, monitor the company’s activities, and even influence them. There is, however, a category of investors who prefer a hands-off approach, observing from the sidelines.
But where can one find an individual willing to invest in a business? And how can one convince them of the enterprise's potential?
These and other questions are addressed by entrepreneur and founder of Oil Resource Group, Sergey Tereshkin. The fruits of his business endeavors can be explored on the website oilresurs.ru.
Features of Attracting Investors
A potential investor can be found anywhere, even in a hotel elevator on the other side of the world. Encounters may be entirely coincidental and can lead to millions in business investment.
Thus, finding an investor is not particularly difficult. The real challenge lies in making them a partner. This requires effort and a significant investment of time.
To ensure that efforts do not go in vain, consider following a set of recommendations from S.I. Tereshkin:
- Develop a business plan. No investor will commit funds to a company whose leader cannot clearly articulate how the money will be utilized and how it will be returned. A business plan can be created personally or commissioned from a specialized firm.
- Create a presentation. To secure significant investments, it is advisable to prepare presentation materials that outline all the investment prospects, discuss profit growth, and visually demonstrate other positive aspects of the project.
- Avoid working with close acquaintances. While an investor can be found among relatives, friends, and acquaintances, this is ill-advised. There is always a risk of failure, and with it, the potential of alienating loved ones. It is often simpler to seek someone external.
It is also essential to define the exact amount required for investment. No investor will consider a project that lacks precise figures. It is better to indicate a sum with a buffer than to find oneself searching for more funds later.
Methods of Finding Investors
There are various ways to find an investor. One can utilize:
- The Russian Business Angels Community;
- domestic forums;
- specialized companies;
- international thematic platforms.
To choose the most suitable option, each of these avenues should be examined in detail.
Russian Business Angels Community
The Russian Business Angels Community is a serious organization that assists in attracting capital from private investors. With its support, one can not only find an individual willing to invest funds but also obtain a wealth of useful information.
Community managers can prepare projects for investment sessions. Simultaneously, the organization imparts knowledge that cannot be found elsewhere, particularly concerning project promotion strategies. Even if the search for an investor proves unsuccessful, the knowledge and new experience can still be leveraged in other avenues.
Forums
There are numerous Russian-language forums where seekers and potential investors post their advertisements. While these platforms do not bear any responsibility, they allow individuals to connect, share information, and directly obtain the needed funds.
When selecting a forum, it is advisable to prefer larger platforms that foster active communication. Posting an advertisement on a neglected site is futile and merely consumes valuable time.
Specialized Companies
Numerous companies can be found online and elsewhere that specialize in investment searches. The managers of such firms work to identify individuals willing to fund businesses. They typically charge a percentage for their services, with higher investment sums yielding greater rewards for the managers. Therefore, they are motivated by larger projects.
However, this does not imply that they shy away from smaller sums. What matters most is that the project is genuinely interesting and promising.
International Thematic Platforms
The investment landscape in Russia is still in its infancy. Many individuals are simply not prepared to entrust their money to others, and the factors of inflation, crisis, and more do not deter them. Eradicating the Soviet mindset is a considerable challenge that may take decades.
Abroad, investments are a commonplace occurrence, with people understanding that money should work for them and generate profits. However, foreign investors will not entrust their savings to just anyone. To secure funding, one must convincingly demonstrate the business's profitability and the likelihood of returning the invested capital with interest.
Many seekers may be intimidated by the lack of foreign language skills. To facilitate negotiations, online translators can be used, or one can enlist the help of a professional who can conduct dialogue competently. It is essential to choose a specialist familiar with the specific technical terms, as this could influence the outcome of the negotiations.
Should a project be rejected by any platform, or if the search for an investor proves unsuccessful, it is vital not to lose hope. Rejection does not necessarily indicate a poor project; it might simply not have resonated with a particular group of investors. Surely, others may find it appealing. Thus, the search should continue.
