Believe it or not there are plenty of folks
out there looking to invest in a small business. Your challenge is to get your
business plan in front of them. Easier said than done, right? Actually, if you
apply yourself you’ll find that it’s quite easy to build a network
of potential investors. First, make sure you have a rock solid business
plan ready to go. It makes no sense to seek out investors unless you’re ready
to pitch. You might get only one shot and you have to be ready. Here are some
tips for building up a network of investors.
1)
Go Online
There is a huge social network waiting for
you to explore that is only a few mouse clicks away. LinkedIn is the most
obvious choice to start your campaign to connect with potential investors. Here
you’ll have a chance to build
up a professional profile and find other business professionals who might
be able to help. A connection you make on a site like LinkedIn might not be in
a position to write you a check but they could connect you to someone who can.
2)
Try Crowdfunding sites
Beyond the direct networking possibilities
of social media, there is another burgeoning source of investors you could find
online and that would be with group
funding. A site like Kickstarter is bringing together pools of small
investors who are willing to share their funds with a business that looks
promising. Once again, you have to be ready to fire up your business machine
and answer any question in a competent matter.
3)
Ask your family and friends
It’s amazing the amount of help we can get
from our family and friends if we just ask. You might have a favorite aunt or
uncle who is willing to take a shot at investing in your business. As long as
you treat them as you would any other potential investment then there is no
reason not to present them with a business plan. Just as your online network
could help you bridge the gap to meeting potential investors, you might have a
friend who works for a company or has their own relationship with a potential
investor. Throw a friendly dinner party and make
your pitch. Keep it honest and sincere and you’ll reap the benefits.
4)
Network at events
This is a no-brainer. There are plenty of tradeshows
geared for entrepreneurs to help them connect with investors. Seek them out
but don’t stop at the tradeshow. Follow the money. This means going to places
where the “money” would hang out: a country club, museum opening, first night
at the opera, polo pony matches… wherever you might think that serious minded
business professionals would gather you should try to infiltrate. This doesn’t
mean barging in with your stack of business plans ready to hang out. Go make
some new friends and see where that takes you.
