How to Get Investment for Your Business

In this hard economy, it may be impossible for one to get investment for his business. Applying for a business loan in a bank is also right. Nevertheless, many people are interested in investing their hard-earned money with the hopes of returning on their own investments. With the lower interest rates on treasury notes and CDs, they are more than willing to consider other options.

In getting a private investor to invest for the business, the investor must be convinced that the opportunity in your business is safe and sound. There is only little failure or risk. A well-thought and written plan should be loaded with examples and specific numbers.

Here are the tips on how to get investment for your business:

  1. Demonstrating the Potential Profit of the Business

The idea of the business can be tested in the marketplace which served as working model. This provides the actual numbers with estimated expenses and revenues. It may not be possible to try the service or product in small-sized scale. It is best to conduct a research to arrive at the numbers from the same businesses which are already successful.

  1. Showing a Growing and Substantial Demand for the Service or Product

Statistics can be utilized such as economic reports, news articles, census reports and the internet. The demand on the service or product can be illustrated the best. For instance, it is just right to write that the catering association further estimates that fifty million dollars are spent in catering in the targeted area.

With the sluggish economy, it does not impede them to cater on graduations, bar mitzvahs and weddings. People are only after searching for low expenditures. This only means that quality service and discount pricing will give the business its more competitive and stronger edge.

  1. Laying out the Marketing Plan

As part of getting investment for the business, there is a need to layout the marketing plan. The test numbers should be included as part of the plan, including the projections for channels that you have intended to try. For example, try to explain that there is already a pay-per-click campaign conducted with the use of keyword ads. The marketing efforts of the competitors are also being tracked.

  1. Specifying your Strengths

Including the real experience on the business helps in justifying how experienced you are in running your business. Anything else can be added for the prospective investor to be convinced. This may include your personal achievements and educational background that further demonstrate your desire, determination and intelligence in making the business work.

  1. Outlining the Function of the Business

The prospective investor, be it a person or a bank, should know something about how the products are stored, delivered, procured and the like. In starting a service business, taking good care of the customers should be best described.

  1. Writing Out a Clear Budget

Using the projected and actual numbers, there is a need to arrive at a monthly budget prior to the first year of being in the business. Annual budgets should also be estimated in the next coming years. Ensure when and how the investor is going to be paid.



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