By Finding an investor for your business provides you with the seed money you will need to start the business. In exchange for purchasing your business, most investors receive a percentage of the sales or company stock. Finding an investor for your business might be harder than it sounds, but there are several ways to start locating and convincing investors to buy your business.
Write a business plan. Before searching for investors write a business plan. A business plan is a published guide of your business including the purpose, the startup costs, expenses, sales forecasts and other information to get the interest of investors.
Make a listing of possible investors. Add people you realize to the list who’ve money to invest and might be willing to have a risk with your business startup Mr Asif Ali Gohar. Friends, nearest and dearest and business owners of related businesses are the best places to start. For instance, if your business involves a computer software product, then other software companies may be interested in purchasing your company.
Locate business investors on investor websites. Dozens of investor websites exist, where business startups can seek out investors (see resources), which may be called angel networks. If you do not have someone you realize personally that can spend money on your business startup idea, you can typically find possible investors through these networks.
Develop an investor presentation. Compile a speech or pitch to present the business enterprise idea for convincing investors to buy your startup. Include information in your presentation which includes what the merchandise or service offering for the business enterprise is, the expense associated with starting the business enterprise, what type of demand there is on the market for them and how much the business stands to make in one year, four years and so on.
Contact the possible investors. Schedule a period to meet up with and make your presentation to each investor on your list.
Present your business idea to investors. At the meeting with the investor, pitch your business giving your presentation and providing a copy of your business intend to the investor. Answer any questions the investor has concerning the startup and tell the investor what is in for them such as for example shares of the business stock or a percentage of the sales.
Sign an investor agreement. Once you see an investor, put your agreement in writing. You will find general agreement templates online or make use of a business attorney to assist you set up a legally binding contract for both you as the business enterprise owner and the investor to sign.