How do I find investors for my small business?
As a Canadian small business owner looking to startup or to grow your business you most likely need funding.
Funding can come from various sources and in this case we will focus on how you can find investor for your small business.
Private investors are not always the sharks that you see on tv and in the movies. Not always do they want to take advantage of unsuspecting business owners in return for the biggest equity cut. Instead, many private investors simply rely on small interest payments you make and hope for growth of your business.
I want to find investors for my small business!
To find investors for your small business there are 3 things that you need to have:
1. An understanding of what your funding needs are (specifics)
2. An idea of how much money you need for each of your needs
While private investors may be everywhere, be sure to know your investor before you decide to borrow the money need for your business.
Knowing your funding needs
Your funding needs are something you should know very well. Your business plan will actually tell you what your funding needs are. Perhaps it’s the need to cover your startup costs, to pay for marketing/advertising, to hire and train your staff or to buy the necessary tools and equipment? Whatever your needs are, it is important that you are aware of them. Being aware of your needs will ensure you seek funding from a private investor for exactly that!
NOTE: Do not over borrow from private investors. Only borrow what you need.
Knowing how much you need
When you find a private investor for your small business they will ask you, how much do you need?
You should be ready to answer the question.
It is important to borrow only the money that you need. Since over borrowing or under borrowing could result in a mess for your business, follow your business plan to understand your funding needs.
Developing your business plan
As a small business owner you just want the money – but you can’t get the money unless you have a properly developed business plan.
Your business plan should outline your business model, how you will make money, how much you will make, what you need funds for, how much and how the investor can benefit.
Have your business plan created before you start your search for private investors. A recommendation is to use our Business Plan Builder Tool.
Once you’ve got your business plan done, your funding needs figured out and you’re ready to start your search for a private investor – be sure to contact CanadaStartups.org as our Funding Database will direct you to over 1,500 sources of funding which you can use for you’re small business (including private investors).
To learn more about funding your small business give us a call at 1-800-288-9691.
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