IN modern world there are more and more interesting business ideas that need to be implemented. But for the promotion of any project, money is needed, which the author of the idea does not always have. Therefore, the question of finding investments for starting a business is relevant. However, entrepreneurs and companies starting from scratch run the risk of facing strong competitors in their chosen niche. And in order to realize 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 you need to do for this. The road will be mastered by the walking one, and the business - by the one who is ready for the new.

• 1 Where to look for investors
  • 1.1 Classic ways to attract investment
• 2 Attracting investments through the mainstream
• 3 Platforms for finding investors
• 4 How to proceed. Basic rules for attracting investors
• 5 How to make the project attractive: what the investor will pay attention to
• 6 How to prepare for communication with an investor: from a pitch to signing a contract
• 7 How to prepare a presentation: 5 chips for investors

Where to look for investors

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

Classic ways to attract investment

You can get money for business through investment funds, small business assistance funds. This is quite a difficult task. In addition to the fact that a novice 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 innovations and IT-technologies.

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

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

Attracting investments 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 sites on the Internet designed so that you can leave offers to raise funds for a project or invest your money in a project. But in order 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 cryptocurrencies popular today, for example, Ethereum, were created with the money of users.

Platforms for finding investors

If you do not know where to look for investors, then we offer you several large platforms for finding them.

business-platform.com. Federal business platform. In addition to projects and sales offers ready business, here you can find the database of investors. 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.com. 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 provides 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 high, so before looking for an investor, you need to learn a few rules.

The more information you provide to investors, the more you will be trusted.

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 to 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, it 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 on the basis of 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 does he do business? How quickly does he make decisions? Every little thing can be important.

An example is receiving investments for the Glowforge project. Before applying for investments, the author of the project looked through the blogs of the fund's partners. Studying them, he concluded that when making a presentation, one should 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 capital funds Foundry Group and True Ventures in 2015.

The project also set a crowdfunding record as it was able to raise another $28,000,000 on the platforms. 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 who can justify their plans. Prove that you are capable of doing what you propose. Refuse the words “I want” and “I wish”, say “I do” and “I act”. Focus on goals. Properly set goals will certainly lead to success.

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

According to statistics, only one out of ten projects receives investments. What needs to be done to make your project interesting for 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. Interesting as the personal qualities of the author of the project, and his motivation, willingness to go to the end. You must prove that you can move forward despite the difficulties. It is important how you achieve your goal, as any investor values ​​his time and money.

1. Correct calculations

Unfortunately, 95% of start-up entrepreneurs, looking for investors, has little idea of ​​what income they can expect. The figures presented by them at the presentation sometimes do not correspond to reality. Constantly growing sales and millions of 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.

1. Project Potential

One of the most important moments in communication with an investor is to determine the potential of the project. The investor must know when the project will generate income, how you will identify potential customers, and finally, when the project will fully pay off. Preferably within a year, maximum three years.

To identify potential customers, it’s a good idea to run a crowdfunding campaign. In the event that users are interested in your project, you will have a chance to arouse interest among investors.

How to prepare for communication with an investor: from a pitch to signing 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. You may have to prepare more than one version of the business plan and answer many questions that you are not quite ready for. Therefore, carefully prepare not only for the presentation, but even for a short meeting and a telephone conversation. Each stage of communication requires its own preparation.

Stage 1. Acquaintance

It can be both internal and external. The main thing here is to interest the investor in your project. To do this, you can use the following methods.

elevator pitch or a presentation in an elevator. The short presentation is so named because businessmen and startups “caught” potential investors in elevators and presented 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 proposals: launch costs that have not been reduced in decades, the possibility of reducing them by 90 percent, and an impressive amount that can be earned.

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

Correspondence. It is quite possible to establish a connection by correspondence by e-mail. For individual calls, this method works best. The letter, in addition to the appeal, must include:

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

Stage 2. Business meeting

Presentation. If a potential investor is interested in the elevator presentation 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 want from it specifically. If you get money, then you need to say so. Such a 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 within the 20-minute presentation, which consists of 10 slides and 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 keep yourself confident, your energy and charisma are very important.

Stage 3. Obtaining funding

Finance, finance and more finance. For an investor, the most important thing is making money. This must be remembered first of all. Therefore, even if your project is supposed to “save the world”, but does not have a good business plan and financial plan, it will not be of interest to a potential investor. A financial model is needed, which can be corrected by the investor himself. Good to have:

• marketing research results;
• 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 for a deal. It is important to show that you know the market well, to convince of the expediency of introducing your product. The investor must believe that by investing money in your idea, he will be able not only to quickly recoup the investment, but also to make good money.

How to prepare a presentation: 5 chips for investors

The presentation is very important, on which the receipt of investments 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 is, then it must be confirmed. Confirmation of demand should be determined by real numbers.
2. Solution to the problem. Your decision cannot be the only correct one. But this is your decision, and you need to convince the investor that it works, that people are ready 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 of changes to the project;
• present the available results.

1. Search for opportunities to implement 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 certainty that he will contact you the next time. Therefore, you need to consider the profit and loss per customer, the so-called unit economy, as well as ways to attract and retain customers.
2. Searching for a market and defining a strategy for entering it. We need to look for those markets that are growing, not disappearing, such as the market for cell phone repair.

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

1. Determining the amount of investment. At the last stage, it is imperative to tell the investor what you need money for and how much you want, as well as how much you are ready to invest yourself.

The right choice of an 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.

Begin

Where to find an investor to open a business and develop an existing project, how to prepare for a meeting with potential partners - answers to these and other questions in the article. As well as sample business plans that will be useful for finding an investor.

In this article you will learn:

Search for an investor in a bank

Where to find an investor in an existing business or for a new project? The first thing that comes to mind is a bank. Probably, every second inhabitant of our country is regularly called by banks and happily informed that they have been approved for a loan from 50,000 to 50 million rubles. For example, a certain bank approved a loan of 5 million for me at 11.8% per annum. However, upon closer examination, it turns out that the rate increases: without insurance - by 5.1%, without prepayment - by 2%, without collateral - by 2.1%, without an online application - by 0.5%. From the date of issue of the loan until the date of the first payment, the rate increases by 1.5% per month. The maximum total cost of the loan is 24.103%. No, thanks!

However, if you look in different banks, you can get a loan somewhere under 11%.

In addition, you can involve your friends or subordinates in co-financing. They draw up a loan at the bank, you repay it, and you pay them a commission for using the loan. This scheme works, since few of the subordinates will dare to refuse the boss if they are confident in his enterprise.

This method also includes obtaining loans for small businesses in banks at 9.5% per annum on security (goods in circulation, equipment, transport, real estate, third-party pledge, guarantee of a small business support fund). The only case when banks provide funds for opening a new business is famous brand franchise(recipe for success).

To find an investor, you need a business plan!Download documents that will help you draw it up correctly, and sample business plans:

How to justify the effectiveness of an investment project to a bank using Excel

To prove to the bank that the company will be able to pay its obligations, use the ready-made model in Excel to evaluate the effectiveness investment activity as a whole or a separate investment project.

Funds and business angels

It is possible to attract investors' funds for a project from scratch or for its development in Russia directly, bypassing banks. For this, connections and acquaintances, recommendations, etc. are usually used. But there are more modern ways attract attention - these are electronic investment platforms. For example, "City of money".

The applicant places his proposal on this site: short description and financial calculations. Provides Required documents(constituent, business plan, guarantees, if any, documents for property that will be pledged. Portal specialists evaluate credit history borrower, documents and the business itself: profitability, stability, own funds, debts, etc. After that, they go to the place and evaluate everything live, because according to the papers, everything can be in order. After that, the proposal is published, which investors evaluate, as a rule, within two weeks, ask clarifying questions and either finance the project or not. See also .

What is the advantage

Firstly, there can be many investors, respectively, the possible losses of each of them are reduced, and they, unlike the bank, can take risks.

Second, they may evaluate the offer differently than the bank. If the project is attractive, then a reverse auction situation is created - when there are more people who want to invest money than necessary, then the interest rate on loans decreases. As a result, a loan is much cheaper than a bank loan. It's over best way get investment for business.

Thirdly, investors, unlike a bank bound by rules, can take risks and give funds without collateral. Here, the platform itself acts as a certain guarantor, which checks the borrower and his affairs. Therefore, through the platform, investors can allocate funds even to those who would not be allowed in from the street even on the threshold of their office.

And finally, fourthly, on the site you can place , without having any business yet, and if it seems attractive, then it will be “buyed”.

For its services, the site takes a commission of 3%, and if we are talking about a startup, then a fixed payment is 4,000 rubles.

Investor proposals

There are also reverse platforms where investors themselves place their offers. For example, "Business platform" .

If you put together sentences from the first page that indicate , you get the following table:

Table 1. Offers of investors

Sum	Percent	Industry	Conditions (information from the site)
		Know-how, production, energy, agriculture, pharmaceuticals, biotechnology, polymer processing	Feasibility study, business plan, team information
		Financing a business through leaseback, real estate and shares, equipment, unfinished projects, or commercial real estate.	We invite partners to cooperate with projects for the reconstruction and development of an existing business
		New technological projects and startups through ICO (Initial Coin Offering) - by issuing (emission) of new cryptocurrencies.	The minimum participation with the customer's own funds is from 20-30 thousand dollars, in this case you can remain 100% owner. The project must have a prototype, a working model, under the "idea" - we do not work
		Construction	Unfinished objects
		Private American business angels invest in any IT and Internet startups with high development potential	Availability of a business plan in accordance with the UNIDO world standard: the project must provide a return on invested capital of at least 12% per annum; upon successful consideration, the registration of the company in the United States and the relocation of the head or one of the first persons of the company to permanent residence in the United States are required.
		Extraction and processing of raw materials, construction and real estate, any production and processing, any industry and energy, any services and trade	Stage of business: from scratch and operating enterprises. The volume of investments is from 10 to 500 million rubles. into one project. Payback period: up to 60 months. Availability of a business plan and a ready-made team.
		Mechanical engineering and metalworking, polymer processing, waste processing, petrochemistry, new materials, HoReCa	A presentation containing general information about and the team, analysis and forecasts of the market for this product / service, key financial indicators, an offer to the investor. Financial model for the next 2-3 years.
		Any highly profitable projects	We are looking for specialists charged with the idea of ​​development, who do not have enough start-up capital and are ready to lead the direction. With a successful start, the initiator receives the right to buy the option after 3 years. Prior to this salary +% of profit
		Mining and processing, agriculture, construction, manufacturing, trade, services and other industries	Pledge or collateral for the project by the initiator is not required. Own financial resources from the initiator - not required. 100% financing is provided by the investor. All risks are assumed by the investor
		Working projects in the field of production, wholesale / retail trade, real estate, construction, Internet technologies, agriculture, finance.	Investment schemes – business equity (priority) or secured lending
		Medical industry (dentistry, diagnostics, MRI), accommodation services, catering, tourism	With a successful start, the initiator receives the right to buy the option after 3 years. Prior to this salary +% of profit
		Investments to buy or open a store	Provision of investments, assistance in sales
		Production, provision of services, trade, IT,	Details from the investor
		Any industries and business areas	A clear business plan Brief information on the project initiator (education, work experience, contacts) and on the investment project (brief description indicating the main economic indicators)
		Automotive, architecture, woodworking, industrial parks, engineering, investment / finance, information Technology, mechanical engineering, medicine / pharmaceuticals, metalworking, real estate, oil refining / petrochemicals, know-how, transportation / transport / logistics, leisure, waste processing, polymer processing, industry, robotics, crop production, Agriculture, communications and communications, construction, energy	Both individual trading companies and chain stores actively cooperate with us in obtaining both short-term and long-term loans in order to increase working capital and increase commodity turnover.

It can be seen from the table that minimum amount investments start from 1 million rubles. A deposit, as a rule, is not required, but it is necessary that the initiator himself be engaged in the development of his business, that is, first of all, businessmen evaluate the business and personal qualities of the applicant himself. As for industries, most of them invest in innovative and IT technologies, or in classic business areas.

If we look at the generalized diagram, we will see that the larger the loan amount, the higher the interest that the investor requires for it (see Figure 1). Although there are exceptions. For example, an American fund for 100 million rubles. asks only 12% per annum, and our businessman-builder 100% for 224 million rubles. (see table above).

Drawing

Raising money through various funds (venture funds, small business support, etc.) can be attributed to the same method. You can come to these funds in person, you can find them through Internet sites, through acquaintances, etc., but the essence of this does not change.

You can get investments for business from your suppliers

A few years ago, a friend of mine organized a cafe-bar without a single ruble in his pocket, moreover, he was heavily in debt. On paying the rent, he agreed with the owner of the premises on a two-month delay, since he needs time to unwind. He also received a two-week reprieve from beer vendors who install taps on the condition that only their beer is served in the bar. With coffee, the same story - a coffee machine was installed for him under the condition of a certain volume of purchases of beans per month with payment at the end of each month. The same goes for beer snacks, cakes, etc. The staff, of course, gets paid at the very end.

Thus, he earned a bar and in the first month he was able to close the current payments, and by the end of the second to pay the rent.

In other words, not only cash can act as an investment for a small business, but trade credit, deferred payment and other forms of in-kind lending. The most important advantage of this type of security is that it is much easier to find suppliers who are ready to provide a commodity loan under exclusive conditions and they will cost less than professional investors or banks.

For example, when a university publishing house needed funds to publish academic literature, they granted one of the large stationery enterprises the exclusive right to sell stationery products in all buildings of St. Petersburg State University. And so we got the funding we needed.

Grants

Another way to get funding is to participate in competitions and receive public and private grants. To do this, a business must have a social component or pretend that it exists.

For example, in St. Petersburg for several years there was a network of folk pharmacies selling medicines at reduced prices through state subsidies. The pharmacy positioned itself as a social project and filed a corresponding application for the state. help. In order to get it, she sold medicines to the population for half a year, in fact, at wholesale prices. Due low prices the pharmacy gained popularity and profited from a large turnover. As a result, Mr. the authorities had already heard about her, and she easily won a grant for the social security of the population with drugs.

This method seems specific, but in fact, any business can be represented as socially significant.

Numerous business incubators and small business assistance programs can be attributed to the same category. Each profile committee in state bodies has its own budget, which it needs to master in its own direction: sports, youth, social sphere, health care, education, social housing, etc.

This also includes fundraising, crowdfunding, crowdsourcing and other ways to collect donations from the public.

In general, finding money is quite difficult, but real. The only question is that both the applicant himself and the investors are confident in the business he offers.

How to Prepare for an Investor Meeting

Before negotiations with potential partners:

• collect information about them;
• think about how to present project data;
• determine the forms of participation in the project;
• prepare documents for the meeting.

Pay attention to the scale and timing of past projects, forms and conditions of participation in them. Study the industry preferences of a potential partner. For example, venture companies are interested in innovative companies. Find out the minimum and maximum amounts invested money, requirements for the level of profitability.

Determine what type of investors are - strategists or financial investors. To draw conclusions, analyze information about the projects in which they invested money. The former take part in the management of the company, the latter are only interested in income from invested funds. With the help of the information received, the financial director will assess in advance how much the company will be of interest to potential investors, and will place emphasis in preparing information.

What documents to prepare

Before meeting with investors, prepare the following documents:

• patents, licenses, documents confirming exclusive rights (if the project involves a high-tech or innovative product);
• commercial proposals or draft contracts for the purchase of equipment, real estate, the creation of utilities. Describe the supplier, the reasons for choosing him and this equipment or real estate, cost, terms of delivery;
• loan agreements, if you have already attracted banks to finance the project. In the description, indicate the amount, interest rate, loan term, loan period, main covenants;
• draft agreement on participation in the project;
• loan agreement indicating the amount, interest rate, disbursement and repayment schedules. This is true if the investor participates in money;
• memorandum of association, share purchase and sale agreement, share purchase and sale agreement or additional issue prospectus (in case of equity participation). In such agreements, fix the size of the investor's participation, the procedure for depositing funds, the procedure for evaluating the contributed share of assets, the procedure for participating in the management of the company, and the rules for distributing profits.

Start-up entrepreneurs often face a shortage Money, without which it is impossible to implement a promising business idea. In this case, you have to look for an investor who is willing to invest in your business. This is a difficult process that requires perseverance, 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. 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 inflation rate. Therefore, investors are looking for enterprises in which they can invest and thus provide a decent passive income. If you are interested in how to find an investor for a small business, first of all, it should be perceived as a potential partner, since you put an idea into the business, and the investor puts his money. Accordingly, it 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 capital.

In an investment question, you need to disclose the following questions:

• Demand and uniqueness of the product;
• The amount of investment;
• The payback period of the enterprise;
• Calculation of future profits and guarantees.

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

Where to start searching?

1. Step #1. Make a clear plan that you will present to potential investors. With it, you must convince the person that your strategy will allow you to make good profits. The document must contain a full description of the company, its prospects, place in the market. Also, do not forget to attach the 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 percentage. Or maybe an investor will suit you, who will give money, but ask for a share in the business in exchange. Choose the most appropriate form of cooperation for you and indicate it in the plan;
3. Step #3. Ask for 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 number 4. Find specialized sites on the Internet where novice entrepreneurs are given the opportunity to present their project to business angels. You place your request for financing the enterprise, after which investors contact the author of the idea that interested them.

Where to look?

Before you find 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 a plan of action. It should outline the production technology, the level of competition in the market, marketing research, sales markets 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 it is not so easy to find an investor to invest in a business idea, 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 a large start-up capital, you can invite friends to invest their savings in the business for a certain percentage of the profits;
• Businessmen. In any city there are experienced entrepreneurs who have made a fortune and want to invest their capital in some kind of profitable business. Try to get a long-term loan from them on favorable terms or offer an equity stake 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 provide assistance to small businesses. But in order to get money in such an organization, you need to prove that your project is viable. In addition, a novice 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 a plan for the development of the enterprise and conduct a thorough analysis of the work of your company. It is also necessary to constantly monitor the work of state investment funds. They often hold various competitions that allow you to select the most promising projects;
• Venture capital investment 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 technologies. Sometimes venture funds finance the service and trade sectors. But at the same time, they expect a share in your business and a stable profit. 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, which is designed for the implementation of various projects. To find an investor for business in Ukraine in this way, you need to provide a competent plan and pass an interview or win the competition;
• Banks. If you don't know where to find an investor for your business, try taking out a bank loan. But, unfortunately, getting the required amount is not so easy, since usually credit institutions make serious demands on borrowers. You will need a guarantor, collateral and a package of documents. If you do not comply with the requirements of the bank, you can not count on a loan. This option is more suitable for implementation.

If you want to raise money for your business, be patient. It is necessary to carefully consider all candidates, as well as take into account possible risks. In this case, you can choose a reliable investor who will help you open a profitable business.

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 hope for 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 millions in profit, and preferably in dollars. It doesn't have to be some kind of tech idea, but if it shows a high return, 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 that do not require large start-up capital to implement. This is the perfect place to start.

Related videos

franchise

Now let's talk about how to find an investor for a franchise business. Such an 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. Loan 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, 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 gratuitous assistance, which is quite enough to launch a small business. This option is great for beginners who are looking for ways to

01Mar

What is an investor for?

We are all well aware that initial stage Starting a business is very costly.

Moreover, regardless of the field of activity, for the most part, the costs will be:

• to a suitable location;
• For the necessary equipment;
• Looking for employees.

Then, depending on the specifics of the business, there will be other costs:

• Additional software;
• Renovation of the premises;
• Purchase of consumables;
• Etc.

And in most cases, the initial costs are so high that it becomes very difficult to pull them alone, or even as a team.

But in addition to the initial costs, many companies feel a lack of funds for full and harmonious development. It is not uncommon for a young team to have great prospects - their products or services become really in demand on the market, but due to lack of finances they miss out on the lion's share of the profits.

For example, they cannot hire additional employees, or purchase more equipment, or expand the premises, and so on. That's when they need an investor in an existing business.

We draw a conclusion: companies need to search for investors at the initial stage of their development in order to cover the lion's share of the costs of implementing their business. This is the main and most important reason why many aspiring entrepreneurs are looking for free cash.

The second reason is the search for funds for the development, expansion and implementation of any new ideas. This is typical for those companies that have found free funds to start, but due to some reason do not have enough for development.

How to find an investor for a business from scratch

Before moving on to the practical part of the search for an investor, you should decide on a couple of theoretical points. Knowing the wishes of the investor, you can understand how to look for him, and what he needs to give.

When looking for an investor, it is important to remember one detail:

Investing means making a profit. This rule should be kept in mind by every businessman who wants to interest a potential investor in his business. No one will be interested in "innovative breakthrough", "original idea", "new technologies" if they do not promise tangible profit. With all investors, you need to speak the language of money and risks. Only then can they really be interested.

Based on this rule, the following can be distinguished:

• To get cash investments, you need to convince the investor that his investments will be profitable;
• You need to prove why your project is more interesting than those of direct competitors;
• Show what prospects you have for further development in the market.

Investors who do this professionally can literally determine in 10 minutes whether a project will be profitable or not. And when they invest in a business, they don't do charity work. The only motivation for investments is to get the fastest profit, which should be higher than not only the average bank deposit, but also the lion's share of competitors.

It follows from this that the main task is not to find a private investor, but to interest him, convincing him to invest his money in your project.

What information may be of interest to investors

Now, based on an understanding of why people generally invest, you can begin to answer questions that may be of interest to a potential investor.

But before that, you need to understand one simple thing:

It is not necessary to perceive an investor for a business as a creditor. He voluntarily invests his funds, and in case of failure, they will not return to him in any way. That is why for aspiring entrepreneurs, an experienced investor will be a partner who can help in case of small setbacks and share the success.

That is why you need to work not only for the benefit of yourself, but also for your business partner. You invest your ideas, effort, time, money (to a lesser extent), while the investor invests his money, participates in making important decisions for the company.

This is a kind of shareholder who has the right to vote, to whom they are obliged to listen, but not always follow their lead. Keeping a balance between the interests of the company and investors is very important.

So, you have found a person who is interested in investing in your company.

What does he need to tell about the business:

• The main idea of ​​the business;
• Required amount of investments;
• Estimated return;
• Risks.

This is all that an investor needs to know at the beginning of your cooperation. When he evaluates the volume of proposed investments, compares profitability and risks, and if he likes your idea, then the second stage will come - a detailed survey about the business.

That's when you have to reveal all the details: why your idea is better than the competition; How are you going to spend the money and on what? when will the business expand, and to what extent; what guarantees can you give and other questions.

It should be understood that laying out all the trump cards at the beginning is not the best idea. It is quite possible that a person will not be interested in business in this area, or he can implement this idea himself.

Profitability for the investor

Russia has an excellent rate of return on bank deposits- key rate Central Bank. By adding 2-3% to it, depending on the region, you can reach the average for deposits for individuals and legal entities with large amounts of money.

For an investor, this is the minimum rate of return that he can get by simply depositing his money into a bank account. Consequently, a businessman must show a profitability at a distance higher than a bank deposit by 1.5-2 times. This is typical for small and medium businesses. For large - income in the amount bank deposit possible due to the scale and prospects for rapid expansion.

To summarize: Investors are primarily interested in the return on their own investments.

That is why before investing money analyze the following parameters:

• Perspective of the idea;
• Required amount of investments;
• Risks and returns.

If both parties are satisfied with these points, then there is a further stage of negotiations, in which the investor tries to obtain the most detailed information about the business and evaluate its future prospects. A competent business plan is able to answer all the questions that may arise during negotiations, so its preparation is mandatory.

Where to look for an investor for a business or startup

We have sorted out the basic information about what you can tell the investor. Now about where you can find an investor.

Relatives, friends, acquaintances

One of the most controversial ways to raise money. Suitable for starting a small business by promising people you know a return on their investment when the business starts to generate income.

At the same time, among friends and acquaintances, you can really find like-minded people who may be interested in the idea, and create a whole team that will be able to share all financial losses and compensate for each other's shortcomings.

You can borrow money from relatives to open your own business if you need a small amount, and there are any guarantees of its return.

Funds

There are two types of funds that can help when looking for investments for a business: small business assistance funds and. Regardless of the type, it will be extremely difficult to receive funds in such funds.

You need to get managers interested in your business. And if in other cases an innovative idea, an advantage over competitors and a quick payback can beat an average or even low profitability, then in this case the return on investment comes first.

Investment funds are only interested in one thing - profitability. They are willing to invest their money at great risk in ventures that will bring them great returns. But if a businessman talks about a long-term investment, without guaranteeing a profit in the first few years, such a business is unlikely to be financed.

In order to assess the prospects for their own investments, the fund will need time and the maximum information that you can provide. A group of analysts will analyze, so the more information, the higher the chances of receiving funds.

Investment funds - an association of many investors who invest free cash in order to make a profit.

And often these investment funds have less money at their disposal than a few private investors who are also ready to invest their money in interesting ideas, if only someone will interest them. But it should be understood that it is much easier to apply for investments in an investment fund than to a private investor, because for the first one you just need to contact the company, and in the second case - somehow find contact with a very famous and rich person.

State funds are one of the most profitable options for obtaining funds if the idea is truly innovative. Competitions are held periodically, the winners of which can receive a grant for which entrepreneurs can implement all their ideas. Enlisting state support, if possible, is the best option.

Successful businessmen

One of the best and profitable ways search for investments - work with successful businessmen of the city or region. Regardless of the scale, in the region you can find many successful businessmen who have already gone down this path, have profitable enterprises and free cash. It will be enough to interest them in your idea and your personality, and then they will invest their money in an interesting project.

At the same time, one of the clear advantages of working with successful businessmen is that they can educate and explain some of the points that they themselves have gone through. Many entrepreneurs are happy to take under the patronage of beginners, explain to them how to cope with difficulties, minimize costs, and make a profit. Especially if cooperation can bring benefits to both parties in the long run.

Collaboration usually takes place under two conditions:

• in the form of a loan;
• In the form of buying a stake in a business.

The second option is preferable for both parties. It involves the participation of the investor in the development of the company, this makes it possible to avoid most mistakes and take advantage of the connections and relationships of a more influential person in order to improve their own.

If a businessman cannot help with finances, it is recommended to ask him which of the people he knows can help and be interested in the idea. Such a small psychological trick will allow you to learn about other businessmen, and with a recommendation from one of your colleagues, you can count on something more.

A method that is suitable only for, and not in all areas. – financing by individuals of interesting projects. Often this is for some kind of reward. Leading companies that are developing some interesting new products for retail and wholesale are looking for free cash.

Banks

If all of the above methods of attracting investors did not work, you need to apply for loans from banks. Different credit organizations have different requirements for potential borrowers, but their essence is as follows:

Banks don't want maximum returns. They are interested in stable receipt of funds and repayment of the loan. That is why credit organizations will study your business plan for stable income generation and, accordingly, return of funds. They are more interested in guarantees than profitability.

It is dangerous for an inexperienced entrepreneur to take a loan from a bank, especially if it is quite risky. If the idea does not work out, then the bank will by all means demand a return of funds, up to the sale of the borrower's property.

That is why it is worth taking loans for a small business, which will pay off in 4-5 months and then be able to generate income. And if it does not work out, then the financial blow will not be as strong as the loss of money for the implementation of a medium or large project.

Venture investments

One of the most popular and effective ways attracting funds for business in innovative areas. Venture investments are investments of funds (associations of investors).

character venture investments is their high risk. They provide cash to many companies that can change the world with their innovative ideas.

Also, venture funds can finance ordinary entrepreneurs. But the main condition will be dynamic development and constant expansion.

Venture funds are a kind of motivation for the constant expansion of business, spheres of influence and products. The most striking example of a company that existed at the expense of venture capital funds is Apple.

Search for an investor: step by step instructions

We are now publishing a detailed step by step plan how to find an investor to start a business:

Step 1. Drawing up a business plan.

As mentioned earlier, a good business plan for an investor will always bring several advantages to a businessman's piggy bank.

What should be in a business plan:

• Description of the idea;
• Economic calculations;
• Payback period of the project;
• Development prospects;
• Analysis of competitors;
• Other information.

With and subsequent presentation, you need to carefully concentrate on all the little things. You need to pay attention not only to all the information inside, but also to your appearance, presentation of material, confidence, etc.

The use of tables, graphs and other graphic materials is only welcome. They help to better perceive information, focus on the right moments.

It will be useful to rehearse the presentation of the business plan at home several times. Also, be prepared for additional questions.

Step 2. Choice of the form of cooperation.

Before you start looking for an investor, you need to decide on the proposed model of cooperation. Of course, you can completely rely on an experienced businessman who himself will offer an interesting way for him to interact with the business, but then you lose your dominant position. We must not forget that it is not the investor who dictates the conditions, but the businessman.

In total, there are 3 ways of cooperation:

• Receiving a percentage of the amount invested in the business;
• Receiving a percentage of profits for the duration of the entire business;
• Getting a share in a business.

Having chosen the method of cooperation that interests him, a novice businessman must indicate this method of cooperation in his business plan.

There are cases when investors do not agree with the chosen model of cooperation. You should analyze this situation and understand whether it is worth following the lead of a more experienced businessman, or whether it is better to insist on your own.

Sometimes it is better to give up your principles and receive funds for the implementation of the project, and sometimes refuse the offer and find another interested person.

Step 3. Search for an investor.

After all the preliminary work is completed, it is necessary to proceed to the very procedure of searching for an investor. You need to work in several directions at once, making acquaintances both in the field of entrepreneurs and investors, and asking your friends.

By working on the list above, you can try various options for attracting investments, and if nothing works, then you should contact the bank.

Step 4. Negotiations with potential investors.

It is advisable to find several interested persons who would be willing to invest free money in the development of your idea. Then you can negotiate from a position of strength and dictate terms. But newcomers rarely find more than 1-2 interested people, which is why you should approach the negotiation process very carefully.

To convince the investor that he will make a profit is the main task of these negotiations. At the same time, it is worth remembering that they will look not only at the prospects of your project, but also at you, so you should monitor your speech, appearance and manners.

It is desirable to answer all the questions that potential investors will have. This will ensure that you are really working on your business idea, and there will be no stupid mistakes during the implementation phase.

Negotiations are the most important part when looking for an investor.

Step 5. Conclusion of the contract.

After the negotiations were successful, you will need to conclude an agreement with the investor. It is advisable that you attend to the creation of the contract yourself and in advance. You should contact an experienced lawyer who can draw up an agreement that is beneficial for both parties.

Important points that should be in the contract:

• Term;
• The amount of investment;
• Form of cooperation;
• Rights and obligations.

Investor search portals

Now there are various portal sites that are intermediaries between investors and novice businessmen.

We present you a list of 5 sites where you can find investments:

1. Venture Club is a real treasure for investors and startups. Anyone who wants to find investment in their project can apply to the site, and after a thorough interview, submit a project. Investors who are interested in the offer will be able to evaluate the idea, financial prospects, and discuss the details. It is attractive for businessmen because there are many investors on the portal and the company directs all its efforts to attract additional people to the ranks of investors.

2. start2up is a platform that brings together investors, startups and people who want to do business together. The service is more suitable for finding potential partners to open a business. The site also contains information on the sale of various commercial assets, which will also be useful for a novice entrepreneur.

3. Napartner– a platform for finding investors in projects in various fields. If you take a closer look, you will notice that many startups have questionable ideas and ways to implement them. Respectively good projects here they are worth their weight in gold and find investments in a short time. At the same time, the number of investors in relation to the number of start-ups does not cause optimism - there are 10 times fewer people willing to invest money than projects. Suitable as one of the ways to attract a potential investor.

4. Starttrack is the best service for serious companies. Despite the fact that the number of companies that have received investment in this system is small - only 36, but nevertheless they are still functioning, generating income. Starttrack is a community of investors that promotes the idea of ​​investing as one of the types of earnings. At the same time, we can safely say that any community of investors is an excellent search for a partner to create a business. It should be understood that you can access this service only if the project is serious and the idea is attractive.

5. Boomstarter is the most popular crowdfunding platform in Russia and the CIS. For a startup in IT, Gaming or original field - an ideal opportunity to find an initial investment. In most cases, the main idea is presented as a product/service. Users, by making a contribution, should receive a reward that would interest them.

9 rules to follow when looking for an investor

Rule number 1. The search for an investor should be done as early as possible.

In order to find an investor who will agree to invest their money in the project, it will take a lot of time. You need to look for new business acquaintances, talk with interested people at the stage of developing a business plan. This will greatly reduce time costs and simple ideas.

It should also be understood that many investors need time to assess the real prospects for the development of a particular company. And when interacting with banks or investment funds, the time to analyze all aspects of a potential client's business activities will be quite large.

Rule number 2. Collect the maximum amount of information about the investor.

Collecting as much information as possible can help in two directions at once: screening out candidates and conducting better negotiations.

For the first you need to know:

• What areas are the investor interested in;
• Where do you usually invest money?
• In what volumes;
• What profit is he claiming?

It is important to understand that applying for a small sum of money a person who usually invests millions in a project is not worth it. He just won't be interested in your offer.

To negotiate, you may need everything you can find out about a potential investor. After all, in fact, it will be the process of selling some share in the business (to one degree or another). And for sales, it is always important to find the client's pain points and put pressure on them, pushing the fact that it is you and the investment in your business that can allow him to solve all his problems.

Rule number 3. Plan your investments.

It is necessary to name a specific amount that will be required from a potential investor. You can not operate with ranges, only in extreme cases, when you are not sure about the stability of the price in a certain period of time.

You also need to understand that you should not ask for more or less money. This will characterize you as a person who did not think enough about his business plan.

Rule number 4. Sounding realistic goals.

You may have the most ambitious goals, but the investor will not need them. To set the goal of “entering the world market” of a company that hasn’t been around for a month is at least very optimistic. It will be much more interesting for an investor to hear "entering the regional market and obtaining a 20-30% share in such and such an area." But in the meantime, you will always have to justify the adoption of a particular goal.

Rule #5: Don't be shy about your idea.

It is hard to imagine that Henry Ford was afraid to tell others about his ideas. On the contrary, he openly stated that he would create such a device in which he could sit down and drive down the street without additional traction. You also need to deal with your business ideas in negotiations.

Feel free to express your ideas, even if it seems to someone that they are far from ideal and difficult to implement. Remember to submit! The more confidently you speak, the better you are perceived.

Rule #6: Putting together a team is the best idea.

All promising projects began in the head of one person. But it can be difficult to realize all the ideas alone, and this is a generally recognized fact. It is best for novice businessmen to find a team of 3-5 people who would at the initial stage be engaged in various matters of the company, solving each of their issues, and becoming professionals in their field.

It is important to assemble a team of like-minded people who will burn with one common idea and spend all their energy on implementation. Those who hack have no place in such a team.

Rule #7: Consider the benefits of working with you.

Speak to the investor in his language. Promise him a profit, then operate with the prospects of growth and expansion. At the stage of business planning, you should carefully think about the question “What will my project be good for?”. Having answered it for yourself, ask the same question, but from the point of view of an investor.

Rule number 8. Try to be as close as possible to investors.

Attend various meetings of potential investors - business forums, conferences, and other events of an all-Russian scale. At one such conference, you can talk with a hundred different people who, in one way or another, will be interested in investing in your business.

A little psychological trick: don't say you came looking for an investment. Try to look like one of the investors - a person with money. Then you can be one of all and you will be treated with great trust and sympathy.

Rule number 9. Honesty is the best weapon.

When looking for a potential investor, you need to understand that you will be mutually beneficial partners. That is why you should always provide the most complete and honest information about the company's affairs, its prospects and your plans.

More often than not, it's better to hear the real "I'd like to sell the company in a year for a few million dollars" rather than "I'll be concentrating on meeting the company's goals and expanding it and going global." In the first case, honesty and transparency, in the second, nothing but ornateness and avoidance of an answer.

Following these tips is simple enough, but following them will help you gain an advantage in negotiations over other similar seekers of free finance and interested investors.

Conclusion

In Russia, the culture of investing one's own money is just beginning to take shape. This is confirmed by numerous surveys among ordinary citizens. Many people still prefer to invest their money in low-yielding and illiquid real estate, rather than buying shares in some young and growing company. But investors are of great importance for the development of business within the country.

What do we have in Russia now: large amount of free cash big businessmen, the desire of banks to finance only stable companies, and the development of investment funds that are interested in interesting and profitable ideas.

What does it mean: in Russia there is a large amount of free cash that investors would like to invest in some interesting projects. Also new policy Central Bank, which says in plain text that banks should also switch to an investment model of the economy, inspires confidence and optimism in investors.

Finding an investor is one of the key steps in creating a business from scratch. Raising funds will allow not only to create a business, but also to develop, reaching a new level.

Investors can act as individuals, with sufficient capital, and companies interested in making a profit. In order to interest an investor, you must always talk about money and income. Only after that follows the prospects of the idea, risks and other factors.

Drawing up a competent business plan and planning negotiations with an 80% probability will tip the scales in your favor. That is why you should not only understand your own idea, but also be able to correctly present yourself.

The issue of finding an investor may concern not only small businesses. Even large companies do not always succeed in investing their own money in a business project without losing the profitability of the main production. Biznes.ru tells how and where to look for people who are ready to morally and financially support your project.

What is business investment

Start-up entrepreneurs need investors for business for a number of reasons:

• Opportunity to raise funds necessary for the implementation of projects;
• Using the experience and knowledge of the prospective investor. If he is attracted to this project, most likely he already has a certain position and accumulated data in this area that can save a new business from defeat;
• Business relations of the future business investor is another important component of the agreement. He can involve his business partners, potential suppliers and consumers in the implementation of plans;
• The subjective element of investing in business projects is the possible growth of the business reputation of the customer company, if the business angel turns out to be a significant figure.

But you need to understand that for an investor, investing in new project not an act of charity, but a prudent allocation of capital. The ultimate goal of any investment is mutual partnership and achievement of the planned result in terms of financial growth.

Who invests in business and how

Today there are many different opportunities for finding investors:

• banks;
• business angels - bankers and private investors;
• venture funds;
• grants;
• business platforms;
• own suppliers.

Let's take a closer look at some of them.

Banks and financial organizations

These structures can act as business investors in one single way - by providing a loan.

This method is not bad for large companies that have expensive property and other fixed assets. They will easily provide the bank with collateral and eventually pay off the debt.

For novice businessmen who do not have significant assets, credit organizations impose very strict requirements. There are a lot of documents to collect for obtaining a loan. It is difficult for novice businessmen to prepare an impeccable package of documents, only if they do not use the services of outsourced specialists who professionally solve all paper and routine issues.

Even if investments in small business in the form of borrowed money can be obtained, often the amount is so insignificant that it does not allow the entrepreneur to successfully implement his project.

Perhaps the only option to start your own business from scratch with the help of a credit institution is to get investment in a business project through franchising. In this case, the franchisor is the partners of the bank, offering start-up entrepreneurs profitable project by franchise.

Major businessmen, business angels

If it is not possible to get a loan for business development, then you can try to contact those who have already taken place in business and are looking for opportunities to invest in new areas.

In this case, investments in business projects are provided according to two schemes:

• In the form of a private loan at interest with agreed terms and conditions for repayment of payments;
• As an allocation of a share in a business project, that is, entering a business as a partner.

This scheme has several significant disadvantages. The main thing is that it can be very difficult to have a private conversation with such persons. Business angels do not walk the streets, waiting for novice IPs to approach them.

In addition, there is a risk that the business will not pay off and the investor will have to pay out of his own pocket. And if a businessman decides to enter into a share and become a full member of the project, this can also greatly curtail your rights.

State and regional funds

When a young entrepreneur wonders where to find an investor for a business from scratch, the first way to solve the problem seems to be to contact special organizations, for example, Small Business Development Funds.

But here there are a lot of obstacles for the successful implementation of the idea:

• It is very difficult to get financing from specialized funds - you need to collect a lot of documents, invest your own funds in the project. If you are still aiming to receive state support, we recommend that you pay attention to the Glavbukh Assistant service. Professional Accountants help you quickly and efficiently prepare all the necessary certificates for your business. The help of an accounting guru is a guarantee that you will quickly receive funding and do not spend a lot of personal time and effort;
• The amounts provided by such funds are usually quite limited;
• Most often, regional organizations allocate money only for strictly specified types of activities, and if the project of a novice businessman does not have the appropriate OKVED code, then it is simply not considered;
• State funds, as well as banks, give advantages to successful and well-established companies, and if you need an investor to start a business from scratch, then this project will most likely not even be considered.

Investment platforms

Many start-up entrepreneurs are looking for an investor for their business, using personal connections, relatives, acquaintances, friends, recommendations. Although the likelihood that among your friends there is a rich enough and moderately risky friend who is ready to share business with you is negligible.

Much great opportunities provide special investment platforms or venture funds specially tailored to support small businesses.

On these resources, the customer uploads his project and provides, at the request of a potential investor, the necessary documents, calculations, business plans. After personal meetings and negotiations, it is possible to conclude an agreement.

Professionals work on such portals, who pre-evaluate applicants and their business projects, while acting as a kind of guarantor of the transaction.

The advantage of such platforms is that projects become public and the possibility of attracting interested investors increases. In addition, several partners can invest in one business project, which will reduce investment risks. And if the project is clearly attractive, then it is put up for auction. In this situation, several investors fight for the right to invest their finances, and the borrowing rate falls.

Potential investors on these portals are not bound by statutes credit institutions and can act at their own risk, without requiring guarantees and collateral from the applicant.

Another attractive point of such sites is that a successful startup can simply be sold there.

Various business platforms, venture funds and investment platforms are the most modern tool in finding an investor for a business. We have compiled a table of the most famous and successful online platforms.

Venue name	Description
	The portal mostly publishes startups. It takes a long time to register a project.
	The portal, in addition to placing business projects, offers transaction support.
	In addition to proposals for finding investors, a large selection of articles on this topic has been collected here.
	Turning to the City of Money site, you can find a loan, get guarantees, place a project, and participate in mutual lending.
business-platform.com	This portal publishes investor proposals, franchises, and ready-made businesses for sale.
	This Internet service is one of the first crowdfunding platforms to attract funding for social and entrepreneurial projects. For five years, the creators of the project managed to attract more than 700 million rubles in investments.
	Federal database of investment sites.
	An investment platform with many active job seekers looking for investors and investments.
	One of the most famous crowdinvesting platforms in Russia, created in 2013 by the Internet Initiatives Development Fund. A good alternative to banks and funds.
	The Potok Diljidal online platform is an Alfa Bank tool designed to unite its clients in order to invest capital and receive investments.
	Crowdinvesting platform, the volume of attracted investments is 718 million rubles. Membership in the club is carried out on a paid basis.
	An international platform that does not set a minimum investment, projects are selected by voting by users of the crowdinvesting platform. The loan is used fixed rate and investing at a percentage of profits.
	This is a new service for p2b lending, which is still in test mode.

Portals with placement of investor proposals

Among modern search tools financial resources there are other platforms for business projects - here the proposals are placed by the investors themselves. For example, the "Business Platform" presents a wide variety of invitations to partnership - in the form of investments and loans in real sector projects, loans and financing proposals, applications for the purchase of a business and the search for interesting business projects.

The owners of investment sites usually have a small percentage of income from the sale of offers.

Grants as an investment in business

The search for investors to implement ideas can be carried out through obtaining grants, both private and public or even foreign.

Usually in this case, the new direction should have a social aspect or successfully imitate it.

Foreign funds consider the targeted use of funds allocated for a business plan to be a priority. These are, for example, the Microsoft Seed Fund led by Bill Gates, the Ford Foundation, the George Soros Renaissance Foundation.

State grants are allocated on behalf of the Committees for the development of small and medium-sized businesses, economic development, industrial policy and trade, some municipalities.

Examples of private grants in the field of scientific medicine, nuclear and space technologies can be the Skolkovo Foundation or, as private investments in business projects from a private investor, grants from the founder of Telegram and Vkontakte Pavel Durov for young IT startups.

Own suppliers as investors in business projects

Even your own suppliers can act as investors to open a business. Such a scheme is possible, for example, when goods are delivered for sale without prepayment or in the case of renting premises with a deferred payment date.

Thus, it is possible to find an investor to open a business not only by direct attraction of funds, but also through a commodity loan, deferred payments and any other forms of in-kind loans. Finding such business angels is much easier and cheaper than attracting investments in business projects or convincing banks.

How to find an investor for a business

Finding investors for a business is not an easy task. Investors are looking for more profitable options for investing than traditional instruments - deposits, mutual funds, and others.

Therefore, young entrepreneurs should not just motivate an investor to invest money. Ideally, when an experienced businessman becomes an ideological partner and a strategic ally, then the alliance of ideas and finances will be mutually beneficial.

First of all, a novice businessman should have a detailed business plan prepared, which will help to clearly and easily present his idea. It must meet the following specifications:

• be unique and in demand;
• reflect full amount required investments;
• agree on the timing of the project;
• contain an exhaustive calculation of the expected profit;
• in one way or another guarantee a return on investment.

An example of a business plan for an investment project can be found.

Stages of concluding an investment agreement

When a novice businessman has found an investor for a small business, the following relationship scheme comes into force:

• it is necessary to negotiate with the investor and choose the best form of cooperation;
• conclude an investment agreement;
• receive funds and start a business project.

Negotiations with a business investor

A novice entrepreneur should be well prepared for the first meeting with a potential investor, because the final result depends on the quality of the negotiations.

The applicant must be persuasive and responsible for every word in the business plan, the only way to prove the prospects of the project. For these important negotiations, the applicant should prepare all the necessary documents. It can be:

• the business plan itself;
• commercial offers and draft contracts;
• draft investment agreement;
• founding documents of the company.

Search and selection of the optimal form of cooperation

There are several forms of cooperation between the applicant and the investor. The latter can receive income in the form of:

• The full amount of interest received simultaneously with the repayment of all investments received.
• Regular interest paid over the life of the project.
• Obtaining an agreed share in the business.

Conclusion of an investment agreement

If the negotiations were successful and a consensus on the form of cooperation was reached, the next stage is the signing of an investment agreement.

This document is very important for further fruitful work. It's great if you can involve a professional lawyer in its preparation.

The main points that should be fixed in the agreement:

• the agreed terms of cooperation and the possibility of their extension;
• amounts and order of payment financial investments in a business project;
• rights and obligations of both parties;
• guarantee of intended use of funds;
• the procedure for resolving disputes under this agreement.

Here you can find the investment agreement form for a business project and real estate investment.

Risks of investment agreements

When the question of how to find an investor to open a business is resolved, it is important to assess its risks before signing an agreement.

Of course, the biggest risk in signing the agreement and financing is borne by the investor. But experienced businessmen, as a rule, are able to correctly assess financial risks, which by and large are divided into two types:

• market or system;
• non-market (non-systemic).

Market ones are just related to the level of inflation, the alignment of forces in the political arena, changes in interest rates and currency quotes. These risks must be calculated before signing the agreement, since it is impossible to influence them.

Non-systemic risks are more subjective and inherent in a particular industry. They can be minimized and eliminated when changing the development strategy.

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