women in business 2012

Starting a business and being your

own boss is a dream for many working

men and women. Whether you have a

great idea for a startup business or want to

branch out on your own in your current

line of work, starting a business from

scratch can be a risky, yet rewarding,

undertaking.

One of the biggest concerns for many

startup businesses is finding the money to

get the business off the ground. Finding

investors for a business idea often involves

patience, resolve and a strong belief in

your idea. Few startups can survive

without some investment capital from

outside sources, and the following are a

few tips to help today’s entrepreneurs find

financial backing for their ideas.

• Know what you need. Once you’ve

explained your idea, a potential investor,

whether it’s a venture capitalist, a trusted

friend or even a family member, will want

to know exactly how much money you

need. The more money you need, the more

people you’re likely to have to approach. If

the amount of capital you need is

relatively small, then you can seek the

help of friends and family members. This

might prove especially rewarding should

your business eventually succeed, as you

will have raised investment capital from

the people you trust and rewarded that

trust with a healthy return on their

investments.

Keeping things in the family definitely

has its benefits, but it can also cause

problems, especially if the amount of

capital you need to raise is substantial. In

such instances, seeking the help of a

venture capitalist might be your best bet.

Venture capitalists not only invest in ideas

for a living, but also if you work with a

venture capitalist, your relationships with

family and friends won’t grow strained if

your idea or plan falters and the returns

on investment are less than expected.

• Invest in yourself, but don’t overdo

it. Letting potential investors know you’ve

invested your own money in the project

can help, but you don’t want to overdo it.

Potential investors might hesitate to invest

with someone who sank their entire

savings into an idea. Such hesitation

occurs because investors don’t want

decisions affecting the company to be

made by someone who is concerned about

losing their entire nest egg. Such decisions

are not always rational, and they can affect

how you approach the business. So while

it’s good to invest in yourself and your

idea, don’t overdo it to the point where

potential investors might see your

business as a red flag instead of a

worthwhile investment.

• Develop a detailed plan. Potential

investors will want to see a detailed

business plan that includes how the

business will be run and how their money,

should they ultimately choose to invest,

will be used. Include a forecast of

expenses, which includes materials

needed as well as what you expect to pay

in rent for office and manufacturing space.

This plan should also include an earnings

projection, which can point to when an

investor can reasonably expect to start

seeing some return on his or her

investment. If you have no experience in

developing a business plan, then you

might want to consult a business advisor.

This will cost you money, but it might

make the difference between finding solid

investors or sitting on your idea.

• Be enthusiastic about the future.

Enthusiasm is important when seeking

investors. Potential investors already have

money, and they won’t want to invest in an

idea with a goal of breaking even. Explain

to potential investors that you have a long-

term vision for your business, one that

isn’t just for survival but, ideally,

expansion.You don’t want to go overboard

here, as you don’t want to make it appear

as though you’re putting the cart before

the horse. But you don’t want to project a

lack of confidence in your ideas or a lack of

vision for how you want your business to

grow, either. Enthusiasm about the future

can pique a potential investor’s interest,

whereas an investment opportunity that

doesn’t figure to yield much of a return

will turn investors off.

Building a business is no small feat,

and entrepreneurs should work as hard at

convincing potential investors to invest as

they did at developing their initial ideas.

How to findHow to findinvestors for your businessinvestors for your business

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CITIZEN’S NEWS Friday, September 14, 201218