Getting Investors for Your Business

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Summary: Getting investors for your business including private sector funding and agel investors.

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Author: Staff Writer

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Getting Investors for Your Business

What do the 1,500 new business owners that launch businesses each day know about finding business investors that you don't?    Discover the options for getting investors for your business to fund your dreams. 

Traditional Bank Loan

If you want to maintain complete control of your company, a traditional bank loan should be the first stop in your loan acquisition process.  Unfortunately, many would-be-business owners find it difficult to get the neighborhood bank to fund their dreams.  Make sure you are well prepared before presenting your business idea.  You will need a well thought out business plan with full forecasts and financial details.

SBA Guaranteed Loans

For those that may have trouble getting the home town bank to take them seriously, the Small Business Administration guaranteed loan may be just what is needed.  The SBA does not grant loans.  They work with lending institutions to guaranty loans for small businesses.  They offer a variety of programs, one which may be right for you.

Small Business Investment Companies

SBICs and Specialized Small Business Investment Companies, SSBICs, are set up and licensed by the Small Business Administration to invest in those emerging companies that may not be eligible for traditional funding.  These investment groups are looking for businesses that have shown potential and are on the upward swing to turn a profit.

Angel Investors

Though the name intimates a free gift from above, these investors are willing to invest in your business-as long as you are willing to give up a portion of the control.  These venture capitalists are generally open to business opportunities that can easily merge with their other investments, have a high growth potential, or have a quick exit strategy-meaning the investor will not be running a long-term business but making a profit off one.

Direct Public Offerings

The stock market may be the place to get the funding you have been seeking.  Direct public offerings ‘offer' shares of your company to individual investors.  This type of financing is generally most successful for expanding companies but can be used for start-ups as well.  The downside to individual stock shares is that many investors do not have the patience to wait for a start-up to begin performing.  Other disadvantages to direct public offerings include the high cost to market the venture as well as giving up a large portion of the control of your company.

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Small Business AdministrationSBTN Podcast: Is Entrepreneurship For You www.sba.gov /

Small Business AdministrationSmall Business Administration - 7(a) Loan Program. www.sba.gov /

Article Citation

"Getting Investors for Your Business." Sophisticated Edge. N.p., n.d. Web. . <http://www.sophisticatededge.com/getting-investors-for-your-business.html>.  

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How to find business investors, angel investors, direct public offerings, small business investing companies
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