Few businesses can operate without seeking additional funding. This may come in the form of a bank loan or investments. The latter option is gaining increasing popularity each year. This approach can help avoid numerous complications associated with credit institutions and significantly save on costs.
However, unlike bank loans, finding an investor can take a considerable amount of time. Many are unsure of how to effectively locate a businessman willing to invest their resources. Where is the best place to start?
To address these questions regarding the search for investors, we turn to Sergey Tereshkin, the founder of OILResurs. The entrepreneur regularly invests in various ventures and has garnered significant experience in this area. More relevant information about the businessman and his investment activities can be found on his portal: sergeytereshkin.ru (сергейтерешкин.ру).
Methods for Finding an Investor
Before embarking on the hunt for an investor, it is essential to prepare a business plan, determine the volume of investment needed, and clarify how these funds will be utilized.
It is important to understand that the search for an investor is not a straightforward process. Candidates will inevitably face rejections. However, this is a standard practice, and one should not be discouraged or give up. Active pursuit will likely lead to success and yield the desired outcome. The key is to be patient and thoroughly prepare all necessary documentation.
Potential investors can be found through a variety of methods:
- Business Angels. This is the most common option that has remained relevant for a long time. This method offers many advantages. Investors not only provide funds but also help the business owner make the project profitable. Experienced businessmen share their connections, introduce the entrepreneur to the right people, offer insights, and, if necessary, guide the borrower in the right direction. Business angels can be found on specialized platforms, where networks and individual investors are represented.
- Startup Platforms. For those just beginning their entrepreneurial journey, platforms that provide essential information about investing, research, and direct access to investors are ideal. Some platforms boast millions of users, including applicants and individuals ready to fund new projects. These platforms not only facilitate the search for investors but also offer consulting services. Such websites help raise hundreds of millions for projects of various specializations annually.
- Crowdfunding Platforms. On these sites, one can find investors even for the most outlandish projects. Several platforms are frequently visited by accredited specialists, providing fresh ideas. Others have become havens for philanthropists and wealthy individuals who eagerly contribute funds to various projects, helping people realize their dreams. Each platform has its unique features, so it’s wise to research project reviews and select one that aligns with individual requirements and chosen strategies before registering.
- Incubators. Accelerators and business incubators are also available for new projects. Collaboration with these entities allows entrepreneurs to acquire funding while also finding investors who are willing to actively engage in the company’s operations. Professionals can provide ready-made business models and assist in their implementation. Accelerators often provide office space where the entire team can work on development. Since other entrepreneurs may work in the same space, they can exchange experiences, share advice, and discuss innovative ideas, paving the way for creative, non-standard solutions.
- Social Networks. There are dedicated networks for finding investors, with LinkedIn being a prominent example. This platform allows users to find individuals willing to invest in their project. Other social media platforms targeting these purposes can also be utilized. By using such platforms, one can find investors globally or invest in international projects themselves.
- Direct Investments. Necessary funds can also be obtained through specialized companies that possess substantial sums and readily allocate them for business purposes. This method can provide almost any amount, even if it totals millions of dollars. Subsequently, such firms sell the asset for a significant profit.
It is also important not to overlook government programs available in many civilized countries. These initiatives are aimed at economic development, with governmental bodies providing funds to companies that will subsequently contribute to the tax budget. However, it’s crucial to recognize that government institutions typically do not invest in risky enterprises; funds are most often allocated for the production of various goods.
Additionally, special platforms that offer online credit to entrepreneurs can be utilized. Many of these platforms are ready to assist small businesses.
Funds can also be raised through personal networks, including family members and friends. Among one’s circle, there are likely individuals interested in growing their capital who may be hesitant to entrust substantial sums to strangers. In this situation, it is essential to recognize that borrowing from loved ones comes with double the responsibility. If complications arise, there is a risk of losing friendships.
However, according to Tereshkin S.I., it is not enough to simply find funds. Proactive marketing efforts are necessary. This will greatly reduce expenses, secure the required funding, develop the project, and ensure a stable, good income.
If it proves difficult to find an investor in the initial stages, it is crucial not to lose hope. One should continue working on the project while simultaneously searching for potential funding. Ultimately, persistence will yield results.
