How do you wisely find and approach investors for a new business that is already viable?
My client's business is brand new but already viable and growing. The issue is scaling and hiring more people to continue providing the value that is making her successful in the first place.
She needs investors and has tasked me with that adventure.
Where do I even start? What are some red flags that an investor is not a good fit? How do I find these people and what kind of information will they want to see from me?
First off, congrats to your client on the business getting started off strongly. That's something to seriously be proud of - though, as you pointed out, the journey has only begun.
Second thing: you've asked a very important question. Finding investors is tough, there's no doubt about it.
But it's even tougher to find investors who you trust and who have your best interest in mind!
If we take a step back though, it sounds that the main concern for your client is really financing the scaling up of the business. Business financing doesn't necessarily need to come from individual investors like those that we see on 'Shark Tank', though.
The other route that people usually take is to apply for a loan through the bank, which perhaps your client has done already or is trying to avoid (for understandable reasons). Applying for bank loans requires filling out tons of paperwork and then waiting for weeks or even months to actually obtain the financing.
Fortunately, there are options available for business owners who want (or need) money to help their company progress and expand.
Lending Express uses advanced algorithms to quickly and efficiently assess your financial profile, and then match you with the loan provider that best fits your profile and needs. Regardless of whether or not your client's business qualifies the first time around, we'll provide tailored guidance on how to improve the business's odds of getting funded (shown on our intuitive LendingScore dashboard).
There are dozens of loan providers in our network that your client may qualify with, all of which offer different products and services. The online application is fast, easy, and has no risk, no obligation, and no cost.
Apply here: https://www.lending-express.com/apply/
Here are other resources that can help you:
> Scaling Up Your Business - https://www.lending-express.com/blog/how-to-scale-your-small-business/
> Startup Fundraising - https://www.lending-express.com/blog/critical-startup-fundraising-mistakes-to-avoid/
> Good Debt vs. Bad Debt - https://www.lending-express.com/blog/good-debt-versus-bad-debt/
Cheers and good luck! Please do let us know if we can be of further assistance!
That's a good question. I'll start by sending you a few articles I think could be helpful before sharing a few thoughts.
How to Find Financing for Your Business: https://www.businessnewsdaily.com/11040-get-startup-financing.html
Startup Financing Challenges and How to Overcome Them: https://www.businessnewsdaily.com/10963-startup-financing-challenges.html
Best Alternative Small Business Loans: https://www.businessnewsdaily.com/8448-best-business-loans.html.
A good starting point is to research angel investor groups within your client's area. Depending on the size of the city, there could be dozens of angel investor groups that are easy to find through simple internet searches. In some cases, small business development centers in the area also have connections with investors. Reaching out to an SBDC could be a good start.
When meeting with angel investors, you'll want business plan information. You should be able to provide basic information on your client's business plan and how the business operates. Once reaching out and connecting with potential investors, you can set up additional meetings to share more information on the business. You'll learn more about what exactly investors want when you meet with them.
Hope this helps!