Finding A Business Investor

Finding a Small Business Investor

Almost all businesses need capital at some or the other stage of development of business. And there would be practically no business owner who do not consider of business investors as an ideal source of the capital that is required. But finding a business investor is not an easy task.

Finding an angel investor is not an easy task, but it will really be worth the effort when you find the business investor who is willing to invest in business. Apart from satisfying the capital business needs, the advice and know-how of an angel investor can play a vital role in giving a shape to the company’s success. Business Investors can be found through the following ways:

Neighbourhood Areas

Usually business investors like to play a dynamic role in the business they invest in, so they try to invest in businesses that are close to home. This gives the investors time and easy accessibility to talk to companies and the set ups. So it is advisable to look for investors closer to home. Business investors may invest completely either on their own or operate as part of an unofficial network or association where they can put together their resources and jointly share the risks. It is advisable to check with the Community Futures Office or Economic Development Centre for an active group of business investors in the neighbourhood community.


In most cases the entrepreneurs would need to be recommended. Investors are not out on the streets waiting to talk to anybody who walks up to them. So to find a business investor it is important for new entrepreneurs to indulge in a lot of networking. This implies engaging in the local business and social community. Intermingling with various business owners and getting in touch with the right kind of people. Meeting the business owners might prove to be helpful since these are the people who might either become investors themselves or further know an interested investor. Joining business and trade organizations and regularly attend the meetings would also be beneficial. Civic and community organizations, trade fairs and a variety fo other events are great ideas for networking


There is a fair possibility of finding a business investor through one of the web sites that provides entrepreneur and business investor matching. The greatest advantage of this is that the business proposal gets a wider audience. There are a number of websites that offer services to bring the investors and the business setup close to each other. Registration at these sites may either be free of cost or can be done at a nominal charge.  However, it must be validated by a local economic development organization.

Academic Institutions

It is helpful to find a nearby college or university. Some of the universities run an entrepreneurship program or a similar degree for their students. These programs attract business investors who are looking for new opportunities that could be create by the university and students. You can get in touch with the director or of the entrepreneurship program, try to fix an appointment and talk to him about the start-up business and request for connections to possible investors

Chamber of Commerce

It is also suggested to join the local chamber of commerce. Chambers of commerce makes sure that the small businesses stay connected with each other and hold local meetings on a regular basis. The chamber of commerce can be also requested for the names of business investor groups or venture capitalists. Networking with other small business owners at chamber meetings can also hugely help in finding business investors.

Steps to Finding a Business Investor

Establishment of a Business Plan

It is extremely difficult to procure finance for a start-up business. The first step is to formulate a business planthat can be presented to the potential investors. It is important to develop an air-tight presentation of your business. This should include all the details of your business plan. Namely what the product is, why there is a huge demand, the cost to make the product and how much you are going to charge for the product. 
To make it further interesting and stimulating, you could add details as to how advertisement of the product. A lot of time and money should be spent to make an impressive package. The business plan should clearly have a section that specifically describes the product, service or invention. There should also be a section that mentions the background, experience and that of the other people in your start-up company. Furthermore the plan should discuss the target market–the people to whom your business is aimed. Also make a section that mentions about the competition you face in the market, a detailed marketing plan and how much financing and capital you need.

Patented Ideas

It is advisable to get the idea of the business plan patented to make sure you are the sole owner of your idea. This is going to tremendously excite the investors. Uniqueness is a major trump card. Once they know that they are the only ones who are in on this amazing idea. If some other company can come in and steal it from under you, then they’ll never see their seed money again. So it would be good to spend the time to get the proper patents.

Stock Offers

The investors could be offered shares of stock. It is important to remember that the money that you are requesting is an investment. So it will be beneficial to offer something in return. You could suggest that when the company is incorporated the investors will get  awarded by shares of stock. The amount is different based on the type of company you set-up. By trading money for shares of stock they are now fully invested. All the technical details should be handled by a business attorney so that there would be no scope for confusions. However, remember not to give away too much of the company as there might be a requirement of additional investors later on.