If you are starting a business and have been looking for funding through banks or government grants, you know how difficult the process can be. Another source to look at is private investors, sometimes called angels. Unlike banks, investors are more willing to take risks on new ventures in exchange for ownership in the company, a high rate of return on their investment, company stock, a management position or all of the above. What private investors ask for depends on their level of interest in your idea and what they wants out of the deal. There are online investment networks you can join to communicate your plans with these private investors.
Instructions
Private Investors Online
1. Sign up with an online investment network, such as fundingpost.com, and complete an application about yourself and your new business. Include all your contact information in case investors have additional questions or want to meet with you.
2. Post your executive summary, which is a one-page overview of your business idea, to the online investor network. Private investors will want to see this to decide if they are interested in your idea.
3. Upload your business plan for those investors who want to view your idea in detail and understand how you will run your business.
4. Add your exit strategy, which is your plan to pay back your investors, so they can see how they will be repaid.
