If you are a beginner entrepreneur or even have an operating and developing company, then you are probably faced with the question of finding investments. Free funds are often required for the development and expansion of a business, no matter what area it belongs to. So, let's start looking for an investor.
It is necessary
Business plan, material support
Instructions
Step 1
Determine what type of investment you need. Any business investment can be divided into direct investment, debt investment and mixed investment. In the first case, the investor receives a share in the business in exchange for an injection of funds. When investing in debt, the investor lends funds on certain and pre-agreed terms. Blended investment involves a combination of the two mentioned types.
Step 2
Bear in mind that there are three main types of investment institutions today. Firstly, these are banking organizations or credit cooperatives. Secondly, specialized investment funds. The third group of investors are individuals, including the so-called "business angels". Most likely, you should try your luck in all three categories.
Step 3
Assess the prospects for obtaining investment in the banking sector. Since banks, as a rule, have the most stringent lending conditions, they are ready to invest in fairly large enterprises with real collateral. Having applied to a bank for a loan, be prepared for the fact that they will carefully check your solvency, the types of collateral that you can offer, as well as the financial transparency of your business.
Step 4
Some credit cooperatives have targeted small business support programs, but in order to receive funds for business development, you must be a shareholder of such a credit union and have a part of your own funds in a savings account or in the form of a paid share. As a rule, the amounts that credit unions are able to invest in enterprises are not very large, but the interest rate on a loan is quite often below the bank rate.
Step 5
Sometimes an entrepreneur manages to secure financial support from private investors. Usually, the procedure for investing among private investors is quite simple, but it requires informal guarantees from third parties with authority. As a guarantee of the return of funds, real property or the introduction of an investor into the company's founders may be required. Consider this issue carefully, because in the event of unforeseen circumstances, you can partially or even completely lose control over your company.
Step 6
The next category of investors you need to explore is investment funds. This form greatly simplifies the search for a potential investor. To attract funds from funds, first study a few of these specialized organizations, having familiarized yourself with the investment conditions. It's easier to start with a search in open information networks, after which you should visit the selected fund and get full information first-hand.
Step 7
Regardless of which method of obtaining investment you choose, take care of drawing up a solid and detailed business plan. The decision of a potential investor to invest in your company will largely depend on the quality of the preparation of this document.
