Beginning entrepreneurs often face a lack of funds, without which it is impossible to implement a promising business idea. In this case, you have to look for an investor who will agree to invest money in your business. This is a difficult process that requires persistence, patience and self-confidence. You will learn how to find an investor from scratch for a small business in this article.

How to attract an investor?

Any investor strives to increase his capital. The interest on deposits offered by banks and other financial institutions does not suit people who want their money to work and make a profit, since such dividends barely cover the level of inflation. Therefore, investors are looking for businesses in which they can invest capital and thereby provide decent passive income. If you are interested in how to find an investor for a small business, first of all you need to perceive him as a potential partner, since you are investing an idea into the business, and the investor is investing his money. Accordingly, this should be beneficial for both parties.

Experts believe that finding an investor for a small business is not difficult. The most important thing is a competent presentation of the idea, which can convince him that this type of investment will significantly increase his capital.

In an investment question, the following questions need to be addressed:

• Demand and uniqueness of the product;
• Investment size;
• Payback period of the enterprise;
• Calculation of future profits and guarantees.

If you can find convincing arguments for all of these positions, the investor will be convinced that your idea will indeed bring good profit and ensure its financing.

Where to start your search?

1. Step #1. Make a clear plan that you will present to potential investors. With its help, you must convince the person that your strategy will allow you to make a good profit. The document must contain a complete description of the company, its prospects, and place in the market. Also, do not forget to attach a calculation of the initial investment and the approximate payback period;
2. Step #2. Decide on the type of investor. For example, you are interested in how to find an investor who will allocate funds to achieve certain goals - to purchase equipment or expand production at a certain interest rate. Or maybe an investor will suit you who will give you money, but will ask for a share in the business in exchange. Choose the most acceptable form of cooperation for you and indicate it in the plan;
3. Step #3. Seek help from experienced businessmen who have been working in your chosen field for a long time. They can give you sound advice on attracting investors to your business;
4. Step #4. Find specialized sites on the Internet where aspiring entrepreneurs are given the opportunity to present their project to business angels. You place your request for financing an enterprise, after which investors contact the author of the idea that interests them.

Where to look?

Before finding an investor for a business, you need to carefully prepare and make a detailed description of the future enterprise. It is advisable to involve experienced economists in this matter who will help you draw up an action plan. It should outline the production technology, the level of competition in the market, marketing research, and markets for finished products. You also need to attach financial calculations and detail the payback period and future profits.

Now let's try to figure out where to find an investor for a small business. There are several options to help you resolve this issue:

• Relatives and friends. Since finding an investor to invest in a business idea is not so easy, try to involve your friends and relatives in this business. This is an ideal option that allows you to minimize all risks. If the implementation of your project does not require large start-up capital, you can invite your friends to invest their savings in the business for a certain percentage of the profit;
• Businessmen. In any city there are experienced entrepreneurs who have made a fortune and want to invest their capital in some profitable business. Try to get a long-term loan from them on favorable terms or offer equity participation in the business. The second option will significantly limit your freedom of action, so think carefully before taking such a step;
• Funds. Another option for finding an investor for a business from scratch is investment funds, as well as funds that assist small businesses. But in order to receive money from such an organization, you need to prove that your project is viable. In addition, an aspiring entrepreneur must have his own start-up capital, which he plans to invest in a new enterprise. This option is more suitable for businessmen who want to find an investor in an existing business. To get a positive answer, you need to draw up an enterprise development plan and conduct a thorough analysis of your company’s work. It is also necessary to constantly monitor the performance of public investment funds. They often hold various competitions that allow them to select the most promising projects;
• Venture investing has become widespread in many developed countries. If you want to find investors for business development in this way, you should remember that these organizations invest money only in promising risky projects in the field of science, innovation or IT technology. Sometimes venture funds finance the service and trade sectors. But at the same time, they expect a share in your business and stable profits. As a rule, such funds finance the enterprise for several years and then sell their share to the owner;
• Business incubators. This is a special platform that is intended for the implementation of various projects. To find an investor for a business in Ukraine in this way, you need to provide a competent plan and pass an interview or win a competition;
• Banks. If you don't know where to find an investor for your business, try getting a loan from a bank. But, unfortunately, getting the required amount is not so easy, since credit institutions usually impose serious requirements on borrowers. You will need a guarantor, collateral and a package of documents. If you do not comply with the bank's requirements, you may not receive a loan. This option is more suitable for implementation.

If you want to find money for your business, be patient. All candidates must be carefully considered and possible risks taken into account. In this case, you can choose a reliable investor who will help you open a profitable enterprise.

Foreign investors

Some entrepreneurs who cannot find money to implement their idea in our country are trying to attract foreign capital to the project. Let's figure out where to find a foreign investor for a small business?

It is pointless to rely on your past victories in various competitions and festivals, since foreign investors are only interested in real financial achievements. You must offer them a project that, with additional funding, will bring in millions in profit, preferably in dollars. It doesn't have to be some kind of technological idea, but if it shows high profitability, you can safely count on the fact that investors will pay special attention to you. Believe me, no one will invest in your ambitions. Therefore, if you are not confident in your abilities, look for interesting ones, the implementation of which does not require large start-up capital. This is an ideal option to start with.

Video on the topic

By franchise

Now let's talk about how to find an investor for a franchise business. This investment tool has been tested by hundreds of entrepreneurs. The main advantages of a franchise are a quick start and entry into the market under the wing of a well-known brand. Borrowed funds for a franchise can be obtained from a bank. This is the only case when banks give money to start a business. In addition, they provide a deferred payment on the loan for 6 months. Thanks to this, the entrepreneur can direct all his efforts to business development and repay the loan from the profits received. To get such a loan, it is enough to have one guarantor.

Help from the state

If you want to implement it, you can try to seek help from the state. There are special programs that allow you to receive a grant to start your own business. This is targeted free assistance, which is quite enough to start a small enterprise. This option is perfect for beginners who are looking for ways to start without starting capital.

It is difficult for a novice entrepreneur to organize his own business, since starting even a small business requires significant financial investments. Where can I get this money? The fastest and most reasonable way is to attract an investor - a person who will contribute his capital in exchange for part of the profit or shares. An investor can become a partner of a company, and often an assistant in development, because he is no less interested in the business generating income than the owner.

Where can a businessman get money to develop his business?

Until the business begins to generate income, not a single day will pass - all this time the entrepreneur spends funds on rent, paperwork, payment of wages, purchase of equipment, consumables, products and for other purposes. You can get start-up capital from several sources:

1. Personal savings is a long, but most reliable way, in which you need to set aside a portion of your income every month;
2. Bank loan – they are reluctant to provide money to start a business, requiring collateral, so more often entrepreneurs take out consumer loans, but the amount is limited;
3. Borrowing money from relatives is a good method if you have a wealthy loved one who is ready to borrow a large amount;
4. Search for an investor - an individual, a company, an association of people, it can also be business angels - specialists in investing in start-up entrepreneurs;
5. Finding a partner - in this case, the business will have to be divided in proportion to the amount of investment; it is better to look for a financially literate person, not a beginner;
6. Starting a related business - for example, if you want to open a car service service, you can start with tire fitting, and when you have profit and experience, expand your business;
7. Receiving a subsidy from the state - provided by the employment center, district administration, business support department, but the amount of injection is small, reporting is required;
8. Crowdfunding is the collection of funds through a special platform from ordinary people, but for this you need to propose an unusual business idea, interest the audience, and conduct an advertising campaign.

Experts and experienced businessmen are sure: borrowing money or resorting to credit is not the best idea for an entrepreneur. It is better to use your savings or attract investors by concluding a cooperation agreement with them.

Step-by-step instructions on how to attract an investor?

Beginner entrepreneurs don’t understand how to find an investor for a small business from scratch? To attract capital to develop your business, you need to draw up a well-thought-out business plan, choose a convenient form of cooperation, find professionals, negotiate and conclude a cooperation agreement.

How to prepare a business project?

A business plan is the business card of an entrepreneur; it is this project that potential investors will study when assessing the attractiveness of financial investments. Please note that the investor is not interested in how original the idea is, what prospects it promises for you personally, he wants to know what profit he can get. The business project must contain:

• a brief and detailed description of the idea and the plan for its implementation;
• calculation of starting capital;
• analysis of real benefits for the investor - also with calculations and reasonable conclusions;
• the payback period during which the income will be received;
• investment prospects.

If a business plan is drawn up by a beginner, he may make typical mistakes due to inexperience, which will scare off investors; sometimes it is better to invite specialists to prepare documents or ask for help from businessmen you know.

How to choose the appropriate form of cooperation?

The form of cooperation is chosen by the businessman together with the investor, but first it is worth calculating the benefits of each model and determining the most effective way of interaction. An investor can earn income in several ways:

• percentage of the deposited amount, as with lending;
• part of the profit from the implementation of the idea;
• share in the business – re-registration of ownership rights will be required;
• finished products or services - relevant for investors involved in a related industry, for example, if a businessman opens a company for the delivery of motor oils, and the investor has his own auto parts store.

During the negotiations, the investor may insist on a different scheme of cooperation; it is often more profitable for the entrepreneur to make concessions than to lose the opportunity to receive funds.

How to turn to experienced businessmen for help?

It is difficult to independently develop your business and look for investors without experience. It is better to ask for help from other businessmen who will provide assistance if cooperation is possible between you on favorable terms in the future. Who to contact? For example:

• if you produce food products, contact store owners;
• if you plan to carry out transportation - to businessmen who rent out cars or need regular cargo delivery;
• if you want to open a flower kiosk, go to flower suppliers;
• you are going to sell farm products to the owners of private household plots.

Experienced businessmen will advise you on the pitfalls and features of the chosen industry, help you study this issue more closely and prepare a detailed business project.

How to negotiate?

The first meeting with an investor is always a presentation of the project, presentation of the business plan and coverage of the main issues that may arise. You need to carefully prepare for the meeting so that the investor understands several points:

• you have financial literacy;
• have excellent command of the topic;
• offer a fresh and interesting idea;
• the investor will be able to make a profitable investment;
• there is no doubt about the honesty of the businessman and the reality of the project;
• what risks exist in this industry.

During negotiations, the emphasis should be placed not on how new the business will be, but on outlining the benefits of investing.

How to conclude a cooperation agreement with an investor?

When an investor is found, the project is presented, consent is obtained, all that remains is to prepare an agreement on the investment of capital. In this matter, it is better to involve a lawyer and check that the document contains the following:

• terms of investment;
• payment method;
• the amount the investor contributes;
• rights and obligations of the parties;
• procedure for action in case of violations.

The money received from the investor must be used only for business development - this is directly stated in the contract.

How to interest investors in a business plan?

• collect information about the investor, eliminating possible misunderstandings;
• carefully calculate the amount of investment that is needed;
• do not delay the implementation of the project;
• outline specific goals;
• analyze the market, competitors, and the situation in the industry so that the investor understands that you have worked on this topic well;
• do not hide important information and facts from the investor.

Of course, a businessman wants to present his project in the most favorable light, so data is often embellished and calculations turn out to be overly optimistic. An experienced investor will definitely ask about the fate of the project in the event of negative developments; you need to be prepared for this question.

Finding an investor is not so easy, because the number of business projects created every day is only growing, and the level of competition for raised funds is increasing. To find an investor, you need to approach your search wisely, following these tips:

1. Start your search as early as possible, as this process can take several months. You need to look for an investor after you have calculated the prospects of the business and assessed the benefits of implementing the idea. The main mistake of newcomers: they use their funds for development, and when the capital runs out, business goes into decline, they begin to look for injections from outside, but such a project most often turns out to be uninteresting for investors;
2. Contact someone who can really help. If the investor is large, it is not worth going to him, offering to invest in a small business, but if it is a small company, then it simply will not have enough capital to invest;
3. Name the specific amount that is needed - there is no need to indicate a range, for example, from 500 to 900 thousand rubles, the number should be accurate, and the spread should be minimal.

An experienced investor knows that it is better to invest in projects with balanced income and risk. The goals of an entrepreneur must be specific, and the idea itself must be relevant, allowing for profit in the future.

How to find an investor - review of specialized sites

In the era of Internet development, it is impossible to imagine searching for investors without the use of remote technologies. For this purpose, there are special platforms where businessmen can “meet” and come to an agreement with potential investors. The following platforms are popular in Russia:

• Boomstarter is a crowdfunding platform focused on raising finance for the implementation of creative projects;
• Planeta.ru – allows you to find an investor and implement socially significant, creative ideas; about 800 thousand people are registered on the portal;
• Nachinanie.ru is a platform for collective financing of projects - religious, educational, socially significant;
• Eastwestgroup – here the investor search services are paid, but the assessment of a business project is carried out free of charge, the company has been professionally attracting investments for over 10 years;
• Start2Up is a message board for investors and aspiring entrepreneurs; projects in the fields of the Internet, education, art, and culture are popular.

Finding an investor to develop your business is not an easy task, but it is a feasible task with the right approach. The main thing is to propose a relevant idea, draw up a well-thought-out business plan, and accurately calculate the benefits of investments. A potential investor will be interested in an honest project with low risks, a sufficient amount of income during the implementation process, and also with a financially literate owner.

In the modern world, more and more interesting business ideas are appearing that require implementation. But to promote any project you need money, which the author of the idea does not always have. Therefore, the question of finding investment to start a business is relevant. However, entrepreneurs and companies starting from scratch risk facing strong competitors in their chosen niche. And in order to implement the idea and find the necessary funds for this, you need to know all the tricks for attracting investors.

We will tell you how to make your project attractive to investors and what needs to be done to achieve this. The one who walks will master the road, but the business is the one who is ready for something new.

Where to look for investors

There are many more opportunities for finding investors than it might seem at first glance. And you can find money by resorting to both long-existing investment methods and modern ones that appeared with the advent of the Internet.

Classic ways to attract investment

You can get money for your business through investment funds, small business assistance funds. This is quite a difficult task. In addition to the fact that a beginning entrepreneur must find serious reasons for receiving investments, he must invest part of the funds himself, but not everyone has the opportunity to do this.

You can ask for help at venture funds, however, it must be taken into account that they provide funds for the development of projects that have prospects. First of all, in the field of innovation and IT technologies.

Another option is a special platform for investing in business projects, a business incubator. But to get money, you need to win the competition and pass an interview.

Successful people can also become potential investors businessmen who would like to have passive income. Finding investors and making them partners is the most acceptable and simple way. And for this you need to be able to present your project well, prove its worth and relevance.

Attracting investment through the mainstream

One of the most popular ways to attract investment is crowdfunding, which is the collection of funds for a business from ordinary people. There are crowdfunding platforms on the Internet designed to allow you to leave proposals to raise funds for a project, or to invest your own money in the project. But to resort to this method, you either need to be a famous person or be able to advertise your idea very well, which, unfortunately, is not done on crowdfunding sites.

You can also try attract investments through cryptocurrencies and electronic payment systems . It should be noted that some popular cryptocurrencies today, for example, Ethereum, were created with user money.

Platforms for finding investors

If you don’t know where to look for investors, then we offer you several large platforms for finding them.

business-platform.ru. Federal business platform. In addition to projects and proposals for the sale of ready-made businesses, you can find an investor base here. The main task of the platform is to connect investors and authors of business projects online.

beboss.ru. The resource provides an opportunity to search for investors for any industry, as well as a catalog of franchises, business plans and business ideas.

napartner.ru. The platform offers various services for startups and investors, such as transaction support. Beginning businessmen will need to describe the nuances of their project so that investors receive as much information as possible.

investclub.ru. The resource offers ample opportunities for finding investments and investors.

rusinvestproject.ru. A platform for searching for investors both in Russia and in the CIS countries.

How to act. Basic rules for attracting investors

There are many people who want to receive investments and the competition is quite strong, so before looking for an investor, you need to learn a few rules.

The more information you provide to investors, the more they will trust you.

If you know how much you can earn, how your project will develop, you can safely go to a conversation with an investor. Calculate exactly how much money you need and for what.

An example is the startup Talkdesk. Its authors proposed the development of cloud technologies that should be used in call centers. Before meeting with a representative of the Silicon Valley venture fund, from which the project team subsequently received $12,000,000, she already had investments from other investors in the amount of $4,000,000 and received $1,000,000 in profit. Investors were captivated by the team’s ability to save money and devote themselves entirely to work. They made all conclusions based on the information provided about the project.

The more you know about an investor, the more opportunities you have to interest him.

What is your preferred communication style? How is business going? How quickly does he make decisions? Any little thing can turn out to be important.

An example is receiving investment for the Glowforge project. Before applying for investments, the author of the project looked at the blogs of the fund’s partners. Studying them, he concluded that when making a presentation, you need to be based not on numbers, but on the product. In total, the project raised $9,000,000 for the production of laser 3-D printers from venture funds Foundry Group and True Ventures in 2015.

The project also set a crowdfunding record, as it was able to attract another $28,000,000 on sites. That is, the author of the project, Dan Shapiro, successfully used the second rule, but most importantly, the third rule.

The more confident you are in your success, the more others will believe in it.

Investors prefer competent and persistent people who know what they want and know how to justify their plans. Prove that you are capable of doing what you propose. Give up the words “I want” and “I wish”, say “I do” and “I act”. Focus on your goals. Correctly set goals will certainly lead to success.

How to make a project attractive: what an investor will pay attention to

According to statistics, out of ten projects only one receives investment. What needs to be done to make your project interesting to investors?

1. You and your team

First of all, any investor will be interested in what kind of people he will have to work with. Both the personal qualities of the author of the project and his motivation and willingness to go to the end are interesting. You must prove that you can move forward despite the difficulties. It is important how you achieve your goal, since any investor values ​​his time and money.

1. Correct calculations

Unfortunately, 95% of aspiring entrepreneurs looking for investors have little idea of ​​what kind of income they can expect. The numbers they present at the presentation sometimes do not correspond to reality. Constantly growing sales and million-dollar profits offered by project authors often have nothing to do with the real state of affairs. Look for how to optimize costs, indicate what exactly you want to receive investments for.

1. Project potential

One of the most important points in communicating with an investor is determining the potential of the project. The investor needs to know when the project will generate income, how you will identify potential clients, and finally, when the project will fully pay off. Preferably within a year, maximum three years.

To identify potential clients, it’s a good idea to run a crowdfunding campaign. If users are interested in your project, you will have a chance to attract interest from investors.

How to prepare to communicate with an investor: from pitch to conclusion of an agreement

There comes a time when the investor believes that he should choose your project. On average, it takes businessmen 3-9 months from meeting an investor to concluding an agreement. It is possible that you will have to prepare more than one version of a business plan and answer many questions for which you are not quite ready. Therefore, carefully prepare not only for the presentation, but even for a short meeting and telephone conversation. Each stage of communication requires its own preparation.

Stage 1. Getting to know each other

It can be either full-time or remote. The main thing here is to interest the investor in your project. To do this, you can use the following methods.

Elevator pitch or an elevator pitch. The short pitch was so named because businessmen and startups would catch potential investors in elevators and present their business idea to them in 30 seconds. Your mini-presentation must include:

• the problem you are solving;
• Product Description;
• monetization method.

The main thing is to attract attention, for which you can use interesting facts or figures. For example, SpaceX's presentation consisted of only three sentences: the cost of launch, which has not been reduced in decades, the possibility of reducing it by 90 percent, and the impressive amount that can be earned.

Elevator pitch can be used at large forums and business competitions.

Correspondence. It is quite possible to establish a connection by corresponding by e-mail. This method works best for individual requests. In addition to the appeal, the letter must include:

• description of the product or services;
• description of consumers;
• business model;
• basis for investment.

Stage 2. Business meeting

Presentation. If a potential investor is interested in an elevator pitch or your letter, he will invite you to a personal meeting, for which you also need to prepare. When going to a meeting, you need to decide what you specifically want from it. If you receive money, you need to say so. This call to action is quite applicable and works.

Now about the presentation itself. It should be short and bright. It's good to follow the 10/20/30 rule. Try not to dwell on the details and keep it to a 20-minute presentation, which consists of 10 slides and is typed in 30 font.

Appearance. The fate of your project will depend not only on a good presentation, but also on your behavior and appearance. That's why:

• don't be late;
• come in a business suit;
• follow the rules of etiquette.

Your ability to carry yourself confidently, your energy and charisma are very important.

Stage 3. Obtaining financing

Finance, finance and once again finance. For an investor, the main thing is making money. This must be remembered above all. Therefore, even if your project is supposed to “save the world”, but does not have a good business plan and financial plan, a potential investor will not be interested in it. A financial model is needed that can be adjusted by the investor himself. It's good to have:

• results of marketing research;
• letters from suppliers.

It is better to prepare three options at once: optimistic, pessimistic and basic. But, in any case, the model must be carefully verified. Only in this situation can we hope to conclude a deal. It is important to show that you know the market well and to convince them of the feasibility of introducing your product. The investor must believe that by investing in your idea, he can not only quickly recoup his investment, but also make good money.

How to prepare a presentation correctly: 5 tips for investors

Presentation is very important, on which the receipt of investment will largely depend. Many entrepreneurs, when preparing for a presentation, do not fully understand the interests of investors and do not know how to properly present their project. What points should the presentation contain?

1. Problem Definition. If it exists, then it needs to be confirmed. Demand confirmation must be determined by real numbers.
2. Solution to the problem. Your decision cannot be the only correct one. But it's your decision, and you need to convince the investor that it works, that people are willing to buy the product. It is best to come to investors already with certain results. To do this, you can take the following steps:

• do product testing;
• notify about changes to the project;
• present the available results.

1. Search for opportunities to sell the product. Willingness to buy does not mean that the product will sell well. Even if a person buys a service or product once, there is no guarantee that he will contact you next time. Therefore, you need to take into account profit and loss per customer, the so-called unit economics, as well as ways to attract and retain customers.
2. Searching for a market and determining a strategy for entering it. We need to look for those markets that are growing and not disappearing, such as the cell phone repair market.

If the presentation shows how your income will grow in 3-5 years, then your financial model will arouse the interest of investors.

1. Determining the investment amount. At the last stage, you must tell the investor what you need the money for and how much you want, as well as how much you are willing to invest yourself.

The right choice of investor, serious preparation for a conversation with him, as well as a good presentation of the project will help you get a chance to invest in your project.

How to make your business proposal attractive and find a private investor? Where and how do you search for investors for startups? Who can help if I'm looking for an investor to open a business in Moscow?

Hello everyone who visited our site! Denis Kuderin is in touch, an investment specialist.

Let's continue the topic of investing. In the new article I will try to answer in detail the question of how to find an investor for business projects, startups and other commercial endeavors.

The publication will be useful for both beginning entrepreneurs and those who already have experience in promoting and developing their own business.

So, let's begin!

1. Why are they looking for an investor?

Any business needs financial support. Without attracting funds, the full development of the project is impossible - it will simply die in its infancy.

Saving money and patiently waiting for the right moment is not an option: in business, time is the most important factor for success. While you save money, your niche will certainly be occupied by agile competitors.

There is nothing wrong with a lack of finances. Even the largest modern companies (for example, Google) at the debut stage developed exclusively at the expense of third-party capital.

Young and promising enterprises almost always feel a shortage of finances: as a rule, this is balanced by an excess of promising ideas. Today, the process of finding investors has been greatly simplified - there are hundreds of funds and companies ready to provide their resources to budding businessmen.

However, these funds do not provide money to every businessman. First, you need to convince your partner to cooperate with you, prove that your project is better, more promising and more interesting than that of your competitors, and provide a competent business plan.

And since most investors are professionals with extensive experience, they are able to almost accurately determine where it is better to invest in order to get a guaranteed profit.

Remember: foundations and private investors are not engaged in charity: they are interested in a full and, as quickly as possible, return on their investments.

Any sources of financing - credit institutions, venture capital companies, business angels - are interested in the return of their assets and do not give out money without sufficient commercial grounds. The exception is organizations that issue grants, but it is even more difficult to win their attention.

Natural questions arise:

• How exactly to attract an investor to your business?
• how to talk to an investor so as not to get rejected?
• where is it better to contact – investment funds, banks, directly to businessmen, friends and acquaintances?

I will try to answer these questions (and some others) in subsequent sections of this publication.

2. What might interest an investor?

Why do some entrepreneurs manage to find money in a matter of days, while others spend years looking for financial support for (at first glance) promising projects?

It’s not a matter of natural charm at all (more precisely, not only of it). Getting an investor interested is a whole science or even an art. First of all, investors need guarantees that their money will work.

Every investor needs to know everything about business participants - their professional and organizational abilities, motivation and goals.

When turning to partners for support, entrepreneurs should prepare in advance:

1. Presentation of your project– an intriguing introduction to the essence and meaning of the upcoming business is half the success.
2. Competent business plan: This document, among other things, must contain specific indicators that the company intends to achieve over a certain period.
3. A realistic plan for spending the funds received– the investor must know where the funds provided to him will go.

Your partners do not need excessive information, but you should have ready-made answers to any possible question from the investor. Excessive optimism will also not inspire confidence: do not try to inflate possible profits and do not remain silent about possible risks.

Try to interest the investor in the originality of your idea, but also remember that too radical innovations may scare away conservative lenders.

Example

A startup developer begins a conversation with an investor with the following phrase: “I want to provide you with a product that has never been on the market before!” It sounds impressive, but an experienced businessman will immediately be wary. He knows that there is usually nothing on the market for which there is no demand.

Even if your product is truly unique, be prepared to prove it to your potential partner with facts. Think in advance about how you will deal with objections and conduct a personal risk analysis.

When starting your search, it is also advisable to immediately determine the circle of people who will be interested in your offer. Your actions must be purposeful. You can search for partners on your own or with the assistance of professional consultants.

3. How to find an investor - step-by-step instructions for beginning businessmen

By acting consistently, competently and, as they say, “according to science,” you will achieve results much faster. The main rule when looking for sources of financing is to take into account the interests of the investor. Remember that the person providing the loan is always guided by commercial considerations.

Your potential partners do not need innovation; they are not concerned at all with your well-being, but with multiplying and preserving their own funds. Many of them are not at all interested in new business ideas, since they are already mortally tired of active commerce.

Investors have already earned money through their own labor and now simply want to receive passive income from their assets. At the same time, they are interested in ways that will bring more money than mutual funds, banks and other traditional investment areas.

Your task is to convince your partners that you will provide them with such income.

Step 1. Create a clear business plan

A business plan is the first thing investors pay attention to. If you do not have a well-designed development strategy, your chances of success in seeking financial support will be minimal.

The plan should contain the following items:

• the essence of the proposed idea;
• the size of the required investments;
• commercial benefit for the investor;
• approximate payback period and first profit;
• prospects for the company's development.

Experts advise paying attention to every detail, right down to the execution of documents: it is recommended to print them on high-quality paper and accompany them with professional graphic design.

Step 2. Decide on a suitable form of cooperation

There are various ways of interaction between the recipient of the investment and the investor. It is necessary to decide in advance which form will be most effective for your company.

Some investors give money at interest, others may demand a share in the business or commissions on future earnings. Having chosen the most acceptable cooperation model for you, be sure to indicate it in the plan.

Remember that a new businessman needs to be flexible: if an investor insists on a particular form of interaction, it may be worth meeting him halfway.

Step 3. We turn to experienced businessmen for help

A beginner will be best understood by experienced entrepreneurs who have been working in your chosen niche for a long time. Many successful businessmen willingly give advice to neophytes if they are planning a mutually beneficial partnership in the future.

Even if the “senior friend”, after listening to the business idea, does not decide to make direct investments, he will certainly provide you with valuable parting words or wishes that will bring success in the future. In addition, he may recommend your candidacy to others.

Step 4. Negotiate

A positive response to an investment proposal often depends on skillfully conducted negotiations.

Even if you have no problems communicating with people, you need to prepare in advance for a conversation with a potential investor. As I already said, you will need answers to possible questions and logical arguments in favor of the viability of your startup.

At the first meeting with a potential partner, you will be expected to make a competent presentation. You will not go wrong if you invite a specialist to participate in the presentation of the project, who will clearly and clearly explain all the nuances of your idea.

Step 5. Conclude an agreement

The culmination of the meeting is the signing of investment documents or a cooperation agreement. I think there is no need to remind you that the contract should be read, not skimmed. It is even better if a professional lawyer gets acquainted with it.

The contract must indicate:

• investment amount;
• terms of interaction;
• rights and obligations of partners.

According to the document, the money is transferred to the customer under certain conditions. The essence of these conditions is that funds are invested specifically in business (production, equipment, creation of an online project).

The investor must be sure that his assets will not be used (even partially) for outside needs - for example, to pay the debts of the head of a startup.

4. Where to find an investor - 5 proven ways

We have come to the next most important question - where to find an investor? The short (albeit banal) answer is as follows: you can find a business investor anywhere.

You just need to look around carefully and you will see how much free money is spinning in the financial space. These funds are just waiting to be “taken into circulation” by energetic and enterprising people, which (I sincerely believe) are our readers.

Let's consider the most popular ways to attract financial resources to your project.

Method 1. Friends and relatives

It is unlikely, of course, that you have heard such a phrase from your friends: “I wish I could become an investor in some promising startup.” However, the inner circle is exactly the area where you should begin your search.

This is especially true for young and novice businessmen, whose number of real contacts in the business world is usually zero. But almost everyone has friends or relatives who have the amounts necessary for an initial deposit.

And often these people do not know where to put their “free” money. Due to the low level of financial literacy, citizens of the Russian Federation sometimes do not even suspect that their existing assets can and should be increased by making smart investments.

However, everyone strives to protect their finances from inflation. Your goal is to convince your friends to become business partners. I agree, the task is not an easy one: in our country, even close people often do not trust each other. But this is no more difficult than borrowing money from a bank or investment fund.

My only advice is to not promise mountains of gold to your friends, uncles, aunts and cousins. Be realistic. Treat your loved ones as official investors: you can even provide them with a full-fledged business plan to dispel any doubts.

Method 2. Experienced entrepreneurs

Even in the smallest city there are people who own successful businesses and have already amassed a substantial fortune. Experienced entrepreneurs understand that money should work, and not lie as a dead weight.

Successful businessmen are always looking for where to invest their capital so that it brings stable profits without much labor. Your task is to make such people believe in your business idea and invest in a new endeavor.

There are two main partnership options:

• take money in the form of a long-term loan;
• offer equity participation in the project.

In the second case, your freedom of action will be significantly limited, but experienced businessmen are more willing to engage in such cooperation.

Read more about this method of searching for investors in the article “”.

Method 3. Investment funds

Such structures often specialize in assisting small and medium-sized businesses. To receive money from an investment fund, you need to prove to its representatives the viability of your project.

This option is more suitable for those who already have an existing business, but do not have enough funds to develop it. For a positive decision on the part of the organization’s management, you, again, will have to carry out thorough preparatory work.

Namely, to analyze the company’s work and draw up a plan for its development or reconstruction.

Method 4. Business incubators

Incubators and technology parks are ways to organize a favorable business environment for aspiring businessmen. In incubators, the development of businessmen occurs quickly and painlessly. Beginners get a chance to realize their own ideas at minimal cost.

Every major city has one or more business incubators. They may be called Entrepreneurship Development Centers or something else, but their essence is the same - to help neophytes create their own business or enterprise.

Technology parks are usually based at universities or research institutions. Their task is to introduce into practice production developments related to hi-tech (high technology). Thanks to technology parks, large industrial companies benefit from the achievements of small, knowledge-intensive businesses.

Most Russian institutions of this type were created with state support.

Method 5. Banks

The most traditional way to find funds for a business. Unfortunately, it is not always possible to get a loan.

Typical requirements of financial organizations for recipients of loans for business activities:

• availability of collateral;
• impeccable credit history;
• reliable guarantors.

In addition, such loans are issued at high interest rates (average rate - 17%).

Sometimes it’s easier to get a consumer loan: simpler, but not cheaper. After all, if things suddenly don’t work out, you’ll have to repay not only the debt, but also the accrued interest.

If this prospect does not scare you, then my advice is to borrow money from companies where you already have an account. Or contact large financial organizations - Sberbank, .

The table shows the most popular loan products for debutants of small and large businesses:

5. Alternative sources of investment - what are they?

It is not always possible to find an investor or a sufficient amount to implement your plans. In such situations, try to get help from alternative sources.

These include:

• state funds to support entrepreneurship;
• grants from private companies;
• companies offering to open a franchise business.

In Moscow and some other cities there are committees and centers for promoting small/medium businesses. These organizations are ready to act as guarantors for loans and sometimes even provide subsidies to pay off interest rates.

Some companies (in particular, " Support of Russia") they themselves are even ready to give money for promising projects. Applicants for subsidies are selected on a competitive basis.

Grant is the most desirable option for young businessmen. The advantage of such assistance is that the grant does not need to be repaid; it is free of charge.

Finance is allocated from budget funds and directed to the development of priority business areas for a particular region or city. Large regional and metropolitan universities often act as intermediaries in issuing free loans.

There are also international organizations of a similar nature - for example, the Scientific Potential Foundation.

There is a separate material on the site.

Self-confidence, creativity and a well-developed business idea: these are the main success factors in finding an investor. The investor must understand that he is not throwing money away, but is investing it in a profitable and worthwhile business.

To help future businessmen, we have collected the most practical advice on attracting third-party subsidies.

Tip 1. Regularly visit places where potential investors gather

Large cities regularly host events to help newcomers meet the right people. Not only investors hang out on such platforms, but also mentors, mentors, experts and other useful people.

The development of information technology greatly simplifies the task of entrepreneurs. There are many intermediary resources online, with the help of which investors look for investment properties and vice versa.

Tip 2. Gather a team of professionals who are passionate about one idea

Teamwork is always more effective than “solo” projects. An example of this is our website “HeatherBeaver”, which works thanks to the coordinated actions of like-minded people.

People who share each other’s views and are passionate about the same idea often make more correct and far-sighted decisions, overcome difficulties more successfully and achieve the desired results faster.

Tip 3: Don't be afraid to pitch your idea to funders

Do not be afraid that you will not be understood, and do not make your project a mystery shrouded in darkness. Openness appeals to investors. If you trust your financial benefactors, they will trust you too.

Tip 4. Don’t set yourself the task of achieving everything at once

This refers to the ability to be patient and flexible. It will be great if you offer the investor several options for business development at once.

Remember also that gradual and systematic movement is more productive than running headlong over rough terrain.

Tip 5. Competently justify the advantages of your startup

If you can clearly and simply explain the advantages and unique properties of your startup, you will gain a competitive advantage over other applicants.

Lack of an original idea and sluggish presentation are the main reasons for failures in finding a source of funding.

And for clarity, a video on the topic of searching for investors with the participation of the famous businessman Vladimir Dovgan.

7. Who can provide professional assistance in finding an investor?

If you find it difficult or impossible to find financial sources for your business, you should seek professional help.

There are platforms on the Internet for those who:

• wishes to invest funds;
• looking for investment;
• wants to find a business partner.

Let's look at the most famous Russian-language resources of this type.

Notice board for investors, startupers, entrepreneurs in need of business partners. The service helps people with finances invest money in profitable projects. And vice versa - budding businessmen can find generous investors here to support their projects.

Advertisements are divided by region and business area. Activities include Internet and IT, Culture and Art, Science, Real Estate, Education and dozens of other promising areas.

Among the participants are hundreds of businessmen and investors from Russia, Belarus and European countries. Placing advertisements is free. Simply register on the site, and your chances of finding investors or business partners will increase many times over.