Where to find an investor for business. How to make your project attractive to investors. Step by step hack. Where to look for investors

Good day!
We are technologists and have developed technologies for fattening and keeping highly competitive cattle fattening. The technologies have been tested by us in industrial conditions and give the Russian livestock industry the opportunity to compete with foreign suppliers of similar products.
There is a desire to create a fattening complex for fattening cattle using our own technologies in the Krasnodar Territory (our place of residence). We want to start small, with 200 heads, with an annual increase in livestock approximately doubling and bringing it up to 1600 heads in 3-4 years (expected net profit of 53 million rubles).
I offer you a summary of the project for the climatic and other conditions of the Krasnodar Territory. You must hear Russia's problems in beef production and its competitiveness, so this is the case that can revive Russian beef production and have a long-term profitable business. The next step is full-scale production of our high performance feed for cattle and sheep.

PROJECT SUMMARY
"Highly competitive cattle fattening

Let's start small!
The project budget in the amount of 15,000,000.00 rubles. ($500,000.00.)
The fattening technology was invented in 1996-1999. The fattening technology has been repeatedly tested in industrial conditions, feed safety has been verified by the state. laboratory, the quality of meat is checked by the state. laboratory (there are relevant Acts). We have a patent for an invention for a feed component

It is planned to fatten 200 heads of cattle from 100 to 540 kg. fattening 365 days. Average daily gain in fattening = 1.2 kg. (for comparison: the average daily weight gain for fattening cattle in the Krasnodar Territory = 0.62 kg.)..

Money is needed for:
1. Acquisition of an empty farm of 40 hectares (ownership of land), Krasnodar Territory. Art. Bryukhovetskaya, near the Krasnodar-Eysk highway (70 km from Krasnodar) - 4.7 million rubles. ($156,667)
2. purchase of 200 heads of cattle - 2.0 million rubles. ($66,667)
3. equipment. - 3.0 million ($100,000)
4. costs (feed, wages, taxes) - 3.0 million rubles. ($100,000)
5. initial other expenses - 2.3 million rubles. ($76,666)
TOTAL \u003d 15 million rubles. ($500,000)

It is desirable to defer payment for 1.5 years. Loan for 5-6 years.
Estimated income - 9.6 million rubles. ($320,000) (delivery price of live cattle - 90.0 rubles per 1.0 kg. 80 rub.+10 rub. grants)
The expected net profit from fattening cattle is 4.6 million rubles. ($153,333)
Additional profit from the production of dry organic fertilizers enriched with mineral additives and nitrogen - 1.2 million rubles. ($40,000).
Total net profit - 5.8 million rubles. ($193,333)

The profitability of fattening is 92.4%. The cost of 1 kg of live beef is 46.8 rubles. (high competitiveness)
The pledge is the future property of the business.

The fattening technology is 100% environmentally friendly, low energy consumption, feed and feed additives are only of our own production. Land for agricultural purposes is not required, feed components are purchased from farmers at market prices.
The share of the investor in the business is up to 51%, depending on the terms of financing.

Sincerely
Dolgushin Vladimir Markovich
Russia
Timashevsk
Krasnodar region
Mob. 8-918-3132090 MTS

Where to find an investor to open a business and develop an existing project, how to prepare for a meeting with potential partners - answers to these and other questions in the article. As well as sample business plans that will be useful for finding an investor.

In this article you will learn:

Search for an investor in a bank

Where to find an investor in an existing business or for a new project? The first thing that comes to mind is a bank. Probably, every second inhabitant of our country is regularly called by banks and happily informed that they have been approved for a loan from 50,000 to 50 million rubles. For example, a certain bank approved a loan of 5 million for me at 11.8% per annum. However, upon closer examination, it turns out that the rate increases: without insurance - by 5.1%, without pre-payment - by 2%, without collateral - by 2.1%, without an online application - by 0.5%. From the date of issue of the loan until the date of the first payment, the rate increases by 1.5% per month. The maximum total cost of the loan is 24.103%. No, thanks!

However, if you look in different banks, you can get a loan somewhere under 11%.

In addition, you can involve your friends or subordinates in co-financing. They draw up a loan at the bank, you repay it, and you pay them a commission for using the loan. This scheme works, since few of the subordinates will dare to refuse the boss if they are confident in his enterprise.

The same method includes obtaining loans for small businesses in banks at 9.5% per annum secured (goods in circulation, equipment, transport, real estate, third-party pledge, guarantee of the small business support fund). The only case when banks provide funds for opening a new business is famous brand franchise(recipe for success).

To find an investor, you need a business plan!Download documents that will help you draw it up correctly, and sample business plans:

How to justify the effectiveness of an investment project to a bank using Excel

To prove to the bank that the company will be able to pay off its obligations, use the ready-made model in Excel to evaluate the effectiveness of investment activities in general or a separate investment project.

Funds and business angels

It is possible to attract investors' funds for a project from scratch or for its development in Russia directly, bypassing banks. For this, connections and acquaintances, recommendations, etc. are usually used. But there are more modern ways to attract attention - these are electronic investment platforms. For example, "City of money".

The applicant places his proposal on this site: a brief description and financial calculations. Provides the necessary documents (constituent, business plan, guarantees, if any, documents for property that will be pledged. Portal specialists evaluate the borrower's credit history, documents and the business itself: profitability, stability, equity, debts, etc. After that, they go to the site and evaluate everything live, because everything can be in order according to the papers.After that, they publish an offer, which investors evaluate, as a rule, within two weeks, ask clarifying questions and either finance the project or not. . also .

What is the advantage

Firstly, there can be many investors, respectively, the possible losses of each of them are reduced, and they, unlike the bank, can take risks.

Second, they may evaluate the offer differently than the bank. If the project is attractive, then a reverse auction situation is created - when there are more people who want to invest money than necessary, then the interest rate on loans decreases. As a result, a loan is much cheaper than a bank loan. This is the best way to get investment for a business.

Thirdly, investors, unlike a bank bound by rules, can take risks and give funds without collateral. Here, the platform itself acts as a certain guarantor, which checks the borrower and his affairs. Therefore, through the platform, investors can allocate funds even to those who would not be allowed in from the street even on the threshold of their office.

And finally, fourthly, on the site you can place , without having any business yet, and if it seems attractive, then it will be “buyed”.

For its services, the platform takes a commission of 3%, and if we are talking about a startup, then a fixed payment is 4,000 rubles.

Investor proposals

There are also reverse platforms where investors themselves place their offers. For instance, "Business platform" .

If you put together sentences from the first page that indicate , you get the following table:

Table 1. Offers of investors

The table shows that the minimum investment amount starts from 1 million rubles. A deposit, as a rule, is not required, but it is necessary that the initiator himself be engaged in the development of his business, that is, first of all, businessmen evaluate the business and personal qualities of the applicant himself. As for industries, most of them invest in innovative and IT technologies, or in classic business areas.

If we look at the generalized diagram, we will see that the larger the loan amount, the higher the interest that the investor requires for it (see Figure 1). Although there are exceptions. For example, an American fund for 100 million rubles. asks only 12% per annum, and our businessman-builder 100% for 224 million rubles. (see table above).

Drawing

Raising money through various funds (venture funds, small business support, etc.) can be attributed to the same method. You can come to these funds in person, you can find them through Internet sites, through acquaintances, etc., but the essence of this does not change.

You can get investments for business from your suppliers

A few years ago, a friend of mine organized a cafe-bar without a single ruble in his pocket, moreover, he was heavily in debt. On paying the rent, he agreed with the owner of the premises on a two-month delay, since he needs time to unwind. He also received a two-week reprieve from beer vendors who install taps on the condition that only their beer is served in the bar. With coffee, the same story - a coffee machine was installed for him under the condition of a certain volume of purchases of beans per month with payment at the end of each month. The same goes for beer snacks, cakes, etc. The staff, of course, gets paid at the very end.

Thus, he earned a bar and in the first month he was able to close the current payments, and by the end of the second to pay the rent.

In other words, not only cash, but commodity credit, deferred payment and other forms of in-kind lending can act as investments for small businesses. The most important advantage of this type of security is that it is much easier to find suppliers who are ready to provide a commodity loan under exclusive conditions and they will cost less than professional investors or banks.

For example, when a university publishing house needed funds to publish academic literature, they granted one of the large stationery enterprises the exclusive right to sell stationery products in all buildings of St. Petersburg State University. And so we got the funding we needed.

Grants

Another way to get funding is to participate in competitions and receive public and private grants. To do this, a business must have a social component or pretend that it exists.

For example, in St. Petersburg for several years there was a network of folk pharmacies selling medicines at reduced prices through state subsidies. The pharmacy positioned itself as a social project and filed a corresponding application for the state. help. In order to get it, she sold medicines to the population for half a year, in fact, at wholesale prices. Due to low prices, the pharmacy gained popularity and profited from a large turnover. As a result, Mr. the authorities had already heard about her, and she easily won a grant for the social security of the population with drugs.

This method seems specific, but in fact, any business can be represented as socially significant.

Numerous business incubators and small business assistance programs can be attributed to the same category. Each profile committee in state bodies has its own budget, which it needs to master in its own direction: sports, youth, social sphere, health care, education, social housing, etc.

This also includes fundraising, crowdfunding, crowdsourcing and other ways to collect donations from the public.

In general, finding money is quite difficult, but real. The only question is that both the applicant himself and the investors are confident in the business he offers.

How to Prepare for an Investor Meeting

Before negotiations with potential partners:

• collect information about them;
• think about how to present project data;
• determine the forms of participation in the project;
• prepare documents for the meeting.

Pay attention to the scale and timing of past projects, forms and conditions of participation in them. Study the industry preferences of a potential partner. For example, venture companies are interested in innovative companies. Find out the minimum and maximum amounts of invested money, the requirements for the level of profitability.

Determine what type of investors are strategists or financial investors. To draw conclusions, analyze information about the projects in which they have invested money. The former take part in the management of the company, the latter are only interested in income from invested funds. With the help of the information received, the financial director will assess in advance how much the company will be of interest to potential investors, and will place emphasis in preparing information.

What documents to prepare

Before meeting with investors, prepare the following documents:

• patents, licenses, documents confirming exclusive rights (if the project involves a high-tech or innovative product);
• commercial proposals or draft contracts for the purchase of equipment, real estate, the creation of utilities. Describe the supplier, the reasons for choosing him and this equipment or real estate, cost, terms of delivery;
• loan agreements, if you have already attracted banks to finance the project. In the description, indicate the amount, interest rate, loan term, loan period, main covenants;
• draft agreement on participation in the project;
• loan agreement indicating the amount, interest rate, disbursement and repayment schedules. This is true if the investor participates in money;
• memorandum of association, share purchase and sale agreement, share purchase and sale agreement or additional issue prospectus (in case of equity participation). In such agreements, fix the size of the investor's participation, the procedure for depositing funds, the procedure for evaluating the contributed share of assets, the procedure for participating in the management of the company, and the rules for distributing profits.

Starting a business in many cases requires attracting significant investments. Appropriate capital can play a decisive role in bringing a startup to a promising market in a timely manner, improving its recognition in the segment, expanding its geography, and modernizing production. Where can you really find an investor? How to build a trusting relationship with him?

What is the purpose of looking for an investor?

Before asking the question of where to find investors, it is necessary to decide, in fact, for what purpose the search for partners should be carried out. As a rule, this task is solved by the owner of a commercial enterprise. He needs the investor's assistance due to the presence of an insufficient amount of money at his personal disposal in order to fully implement the business project. An investor may also be interested in providing the necessary amount of financing in order to subsequently benefit from the growth of the company's turnover.

What are the mechanisms for building relationships with investors?

Also, before thinking about where to find investors, an entrepreneur needs to decide on the desired mechanisms for building relationships with a partner. There may be several of them.

First, an entrepreneur's relationship with a partner who is willing to provide financing may constitute direct investment. This mechanism involves the provision of funds to the company in exchange for the participation of a partner in the direct management of the organization, in determining the business development strategy.

Secondly, financing can be attracted on the terms of portfolio investment. This mechanism assumes that the partner, while investing in business development, also acquires a share in the ownership of the company. In the first case, the investor's benefit is to participate in the management of a potentially large enterprise and become an influential member of the business community. In the second case, the partner, in case of company growth, gets the opportunity to significantly increase his capital.

What are the investors

Another nuance that an entrepreneur needs to study before deciding where to find investors is to consider the specifics of the activities of partners who are ready to invest in other businesses. The subjects that become participants in the relevant legal relations can be represented by: individuals, organizations. Both, in turn, are classified into venture investors and those who are ready to invest in fundamental projects. Investors can also be Russian and foreign.

Another criterion for classifying entities involved in legal relations with businesses on financing issues is the degree of state participation. There are government agencies - most often funds that assist businesses in raising funds or provide them. There are completely private companies.

Crowdfunding

There is a special category of legal relations in the field of investment - crowdfunding. This term corresponds to the mechanism of business funds from a large number of people - individual social groups or representing society as a whole. As a rule, investors who provide funds to entrepreneurs as part of crowdfunding do not impose any obligations on them in terms of exchange for a share in the business or participation in the management of the company. This feature predetermines the great popularity of the relevant legal relations. Many entrepreneurs, thinking about where to find investors, first of all turn to crowdfunding.

What might be of interest to an investor?

Let us now consider a number of practical nuances that characterize the relationship between entrepreneurs and partners in terms of business financing. So, before thinking about where to find an investor for a project, you should pay attention to such an aspect as the attractiveness of a business project - those indicators that a potential partner will pay attention to when making a decision on investing money in a company. What exactly?

First of all, it is the presence of a sufficiently large market for the sale of goods and services that the company produces. The second indicator is the dynamics of the industry development. The investor is interested in the product produced by the company being in demand on the market for a long time. If the dynamics of development of the industry in which the enterprise operates is sufficiently high, then the partner must make sure that the entrepreneur can ensure the timely release of goods that is not inferior to the products of competing enterprises.

Actually, the level of competition is also an important indicator for an investor. At the same time, for some partners, high may be more preferable, while for others, low. In the first case, the investor and the entrepreneur can take advantage of the presence of a sufficiently stable demand for the manufactured product and counteract competitors due to the higher quality or lower price of the products supplied to the market. Low competition is attractive from the point of view of the firm's profitability. Of course, provided that there is a demand for goods manufactured by the company.

Another important criterion for an investor to make a positive decision regarding project financing is the validity of the business plan. The market may be in the most favorable conditions, there may be an optimal level of demand and competition, but if the entrepreneur does not provide a plan according to which the firm will enjoy these advantages, the investor may question the prospects for financing the company.

The next factor in making a positive decision on the project by the partner is the competence of the team with which the business owner works. Or his personal. The situation on the market may be optimal, the business plan worked out in detail, but the implementation will not be at the highest level for the reason that it will be carried out by unprepared people.

These are the main factors that an entrepreneur should consider before thinking about where to find an investor for a project. If he successfully solved this problem, you can proceed to consider specific mechanisms for finding a partner. Where to find an investor for a start-up of a medium or large enterprise in Russia?

How to find an investor for a startup?

Let's start with the specifics of finding partners for a startup founder. The main value of the corresponding type of business is a promising idea. As a rule, it is characterized by originality, dissimilarity with most other concepts. Another significant criterion for evaluating the prospects of a startup is the absence of existing businesses in the relevant segment throughout the country or a particular region.

It happens that an entrepreneur who solves the problem of where to find an investor in Moscow decides to switch to one of the markets in the constituent entities of the Russian Federation, since competitors can already operate in the Russian capital. While in the regions, similar businesses will not be too developed or even absent as business entities.

Above, we examined the main mechanisms for attracting investment. If the question is where to find an investor for a startup, then the optimal schemes in this case would be: attracting crowdfunding. The advantage of both mechanisms is the absence of big risks for the entrepreneur. True, in the case of venture projects, the business owner in most cases has to give a share in the ownership of the company - the type of financing in question belongs to the category of portfolio investments. However, in this case, the partner, as a rule, assumes the bulk of the costs required for crowdfunding. The advantages of crowdfunding are also obvious - this is the opportunity to raise a large amount of funds in the absence of obligations to investors in most cases.

Where can you find an investor who is ready to invest in a startup under one scheme or another?

If we talk about venture projects, then there are a large number of specialized funds that are actively involved in the relevant legal relations. They exist both in the Russian Federation and abroad, and are represented by both state and private structures. Sometimes it is enough just to find a suitable venture project or venture fund, and then get acquainted with the proposals of the relevant companies regarding the prospects for partnership with private organizations.

How to find investors and where to look for them when it comes to crowdfunding? This format of legal relations is almost completely online. There are a number of the largest - both Russian and foreign - Using them is quite simple, but it is important to write a competent description of a business project, to tell potential investors about its advantages.

How to find an investor for a small business?

Consider now where to find an investor for a small business. This format of the enterprise activity assumes that the company is not a start-up, but an already functioning business with more or less acceptable turnover. Investments in this case are sought in order to expand or modernize production, conduct a large-scale marketing campaign in order to increase brand awareness in the region, country or abroad. As a rule, small businesses are financed with the participation of investors who specialize in building fundamental partnerships with private firms.

Venture investments allow for a scenario in which the partner, in principle, will not be able to return his own investments, since the business will turn out to be unprofitable. In turn, the fundamental partnership assumes that the investor will be able to at least ensure zero profitability of his investments, and in the long term - to significantly increase capital due to the growth of the enterprise.

Where to find an investor for a small business? Such tasks, as a rule, are solved during personal meetings between entrepreneurs and potential partners who are ready to invest in the development of the company. They can be held as part of specialized events - business conferences, round tables, presentations. Communication between an entrepreneur and an investor is also possible in an informal setting, for example, at a corporate party to which they were invited. Fundamental investing is a common activity among financial funds. Information about them can also be found in search engines.

How to find an investor for a medium or large enterprise?

Where can I find an investor for a business that is a medium or large enterprise? It is noteworthy that a large-scale established company, at least classified as a medium-sized business, as a rule, is in itself a desirable investment object for an experienced financier, since it is an operating profitable business. Therefore, it is possible that it may not be necessary to look for a partner who is ready to invest in a company if it meets the criteria for a large enterprise.

However, another question may well be relevant - where to find a private investor who would be a reliable partner, ready to build a constructive dialogue on business development. It is allowed, as a rule, in non-public ways - through communication with major financiers through private channels. But in some cases it is realistic to find an investor at major events, especially when it comes to, for example, international exhibitions. The prospects for building relationships with partners largely depend on the business area.

Thus, the solution of the question "where to find an investor for construction" may differ significantly from such a task as finding a partner in the field of information technology. The construction business and IT are areas with different profitability and development dynamics. Each of them requires special investor competencies in assessing the prospects for investing in a particular company. But, of course, there are financiers who are equally well versed in both construction and information technology. Thus, the investment search strategy largely depends on the size of the firm, as well as on the sector of the economy in which the company is present. For startups, one approach will be more justified, and for small businesses, medium and large firms, different strategies.

It will also be useful to consider a number of recommendations for entrepreneurs who decide to find an investor, as well as establish a trusting relationship with him. We will study those strategies that can be described as universal, sufficiently suitable for a business of any size - a start-up, small, medium or large enterprise.

How to find an investor and establish a relationship with him: recommendations

Actually, it is useful to search for an investor in those social environments in which people engaged in activities close to the company's profile communicate. Where finding a private investor for construction is not a problem, it can be quite difficult to establish an interaction with a person who might be interested in sales. Effective investment is largely the result of high competence, most often achieved within the narrow specialization of a financier.

Investment experts advise business owners to first tell potential partners about what other sources of funding are expected to be used, and what their actual availability is. This approach will allow the investor to understand his own role in the relationship with the business and assess his readiness to comply with it. So, if the company also uses credit funds, then its owner can make it clear to the partner that he can count on a smaller share in the business than if the investor financed the project alone.

Another important nuance is the discussion of the conditions for changing the initially reached agreements. It may happen that the project during its development begins to show more or less profitability (or dynamics of return on investment) than expected by the business owner or investor, as a result of which it may be preferable for them to change the order of their own participation in the company's activities.

An entrepreneur should discuss with a partner the procedure for reporting on certain business transactions, its composition. Some investors require only accounting documentation of the appropriate type, others prefer to receive these as well. It is useful to clarify these nuances at the earliest stages of the partnership.

It is important, therefore, not only where to find a business investor, but also how to establish a long-term partnership with him. A high level of competence in entrepreneurship is always appreciated. Therefore, the investor will also be interested in building an effective partnership. You need to be able to listen to him and take into account the interests he expresses.

Summary

So, we have considered the question of where to find a real private investor. Its successful resolution depends on the scope of the company, its scale, the level of competence of the entrepreneur and the specialists he attracts. An important role is played by other conditions for financing the company, as well as the willingness of its owner, if necessary, to revise the agreements reached with the investor in order to build long-term partnerships.

Last update:  02/22/2020

Reading time: 12 min. | Views: 14639

Good afternoon, dear readers of the financial magazine "site"! In continuation of the topic of investing, we will consider the issues of finding investments for a business, namely where and how to find an investor to open a business from scratch, what to do so that he agrees to finance a business project, and so on.

In this article, we will cover:

• Why investors are needed and how to attract them correctly to start a business;
• What steps should be taken to find an investor from scratch;
• What rules should be observed in the process of searching for an investor;
• Who can you turn to for help in finding investors?

You will also find answers to frequently asked questions at the end of the post.

The article will be useful to absolutely everyone: as a business start-up, and those who already have some experience in business development. Also, the article will appeal to those who are interested in the theory of finance and investment.

To find useful information about attracting investors, read our article to the end.

Where and how to find an investor to open a business, what to look for when looking for investors for a small business from scratch - you will learn about all this and more later in the article

Regardless of the type of activity, a business needs cash. If you do not raise capital, even the best project develop will not be . This threatens that the business will die at the planning stage.

It should be understood that for the successful development of entrepreneurship, it is important not to miss the moment. Therefore, businessmen, as a rule, do not have the opportunity to save money. There is a great risk that while it is possible to raise the necessary amount, the moment will be lost, and the prospective market will be attacked by faster and more enterprising competitors.

At the same time, novice businessmen should not be ashamed of the fact that their capital is insufficient. Even successful large companies, when they first started their activities, used borrowed funds.

Young companies with prospects for successful development most often feel the lack of funds. At the same time, they have a huge number of ideas that need to be implemented. Here and now ».

To date Finding investors just got easier: for this purpose, a a huge number of funds and companies who agree to transfer their money to novice businessmen.

But it must be understood that not everyone can get funds in funds. First of all, a businessman will need to convince investors to invest in his project. To do this, you will need not only to draw up a business plan, but also to prove that a particular business project is more interesting than that of competitors, and also has better prospects.

Most professional investors have extensive investment experience. Therefore, they easily determine those projects in which it is best to invest in order to maximize profits.

Businessmen must remember that funds, and private investors Don't donate money to charity. From the projects they invest, they expect maximum and speedy return.

Thus, any source of investment funds, whether banks, funds or other companies do not issue funds without the necessary confirmation. You can, of course, try to get a grant. However, the companies that issue them are even more rigid in their selection of applicants.

What to look for when attracting investors

2. How to attract investors - necessary conditions 📋

The goal of any investor is to increase his available funds. Most of them know that income from bank deposits barely covers the rate of inflation. Therefore, such investments investors completely not satisfied .

Investors strive for a level of income that will not only cover the rise in prices, but also ensure a comfortable life.

All this explains why those who have significant amounts of money are looking for such companies in order to invest in them funds that will be able to provide them with sufficient money.

Starting businessmen, starting the search for a potential investor, should perceive it not as a creditor but as a partner. It turns out that a businessman invests an idea in a project, while an investor puts his own money. Therefore, such a deal should be beneficial for both parties.

Most professionals agree that search for investors- the task is not so difficult. Here the main thing is competently present your idea. It will also be necessary to convince the owner of the funds that the investment in the project will be quite promising and will bring significant income.

When telling an investor about a project, the following topics should be covered as fully as possible:

• uniqueness and relevance of the product/service offered for production;
• the size of the required investments;
• in what terms it is planned to recoup the invested funds;
• expected level of profit;
• what is the return on investment guarantee.

If a businessman correctly characterizes each of these issues, the chances of convincing an investor that the project can really bring good profit, will rise significantly. As a result, the investor will decide on the allocation of funds to him.

3. How to find an investor from scratch - a step-by-step guide to finding an investor for a business 📝

When looking for an investor, it is important to act consistently in accordance with the recommendations developed by professionals. In this way be able to quickly succeed in finding investors.

When looking for sources of investment, it is important to take into account the interests of the owner of the funds. It is important to understand that investors are guided by their own commercial interests when making investments.

Potential investors not interested how innovative the activity will be, and whether it will bring profit to the business owner. They are concerned about the increase, as well as the safety of their capital.

Some investors not important business ideas, as they are looking for passive income, tired of active business development. They have already managed to earn initial capital by working hard. Now the only desire of such investors is that the available funds bring profit, and at the same time it would not be necessary to do anything.

At the same time, they are looking for investment options that will bring more income than traditional investments - , mutual funds and similar financial instruments.

Step-by-step instructions on where and how to look for an investor to open a business

Therefore, when looking for an investor, it is important to convince him that they can receive such income. It is of great importance to follow the step-by-step instructions, which we will describe below. This will help increase the chances of a quick and high-quality search for the necessary funds.

Step #1. Drawing up a business plan

First of all, when choosing an object for investment, investors pay attention to the business plan. It must be well-formed, otherwise the probability of receiving funds may come to naught.

A well-written business plan must contain the following information:

• project description;
• calculation of the required amount of money;
• analysis of the commercial benefits that the investor will receive;
• the payback period of the project, that is, after what period of time the first income will be received;
• what are the prospects for further development of the organization.

Trust must be everything- from the quality of the paper on which the document is printed, and the folder in which it is enclosed, to the use of professional graphic editors when drawing up the necessary diagrams.

In more detail, we wrote in a separate publication.

Step #2. Choosing the right form of cooperation

Cooperation between a business owner and an investor can take many forms. It is important to analyze in advance which of them can be most effective for a company that is looking for funds.

Investors agree to provide funds by earning income in the following ways:

1. as a percentage of the invested amount;
2. as a percentage of profits throughout the life of the project;
3. as a share in the business.

The business owner, having decided which option is more acceptable for him, must indicate it in the business plan. However, it is often difficult for a novice businessman to find the necessary funds.

Therefore, if a potential investor categorically disagrees with the chosen model, wishing to use another option for cooperation, should be assessed. Often it is better to agree to the conditions of the investor than to be left without money.

Step #3. Enlist the help of experienced businessmen

Beginning entrepreneurs can be sure: no one will understand them better than experienced businessmen who have been successfully working in the same field for a long time. Many of them willingly advise beginners on how to proceed further. This is especially true for those cases when mutually beneficial cooperation is possible between them in the future.

Often, experienced businessmen take newbies under their wing: they can invest money in their ideas or recommend the project for investment to other investors. Even if this does not happen, it is quite possible that professionals will give such advice and recommendations that will help in the future.

Step number 4. Negotiation

Often a positive decision of investors to invest in a project determined by good negotiation . Even those who easily find a language with people should carefully prepare for the meeting.

It will be necessary not only to convince a potential investor of the prospects of the project, but also to answer all the questions that have arisen. Therefore, it is advisable to think in advance about what a businessman may be asked and prepare reasonable answers.

From the first meeting, investors usually expect a competent presentation of the project, as well as a business plan.

It would be useful for a businessman to invite a specialist who participated in the development of the project to negotiations. It is quite possible that he will explain all the nuances of the project much more competently, as well as answer the questions that have arisen.

Step number 5. Conclusion of an agreement

The final stage of the negotiations, if an agreement is reached, is signing an agreement on cooperation or investment. It is important to carefully study absolutely all the conditions of the drawn up contract; it would be useful to involve a professional lawyer in this process.

It is important to note that the agreement should include:

• term of cooperation;
• the amount of investments;
• rights, as well as obligations that are assigned to the parties.

In accordance with the agreement, the funds are transferred to the businessman on certain conditions. Their essence is that money should be invested in the implementation of the project .

It is important for the investor that the signed agreement excludes the possibility of outside the intended use of funds, even part of the money invested should not go for needs that are not related to the implementation of the project.

Conclusion of an investment agreement - sample

An example of an investment agreement can be downloaded from the link below:

(example, sample)

Thus, in attracting funds from investors, it is important to follow a certain sequence. A businessman should be guided by the step-by-step instructions described above. Then the attraction of funds will be most effective.

How and where to find investors

4. Where to find an investor - 6 options for attracting investments 🔎💸

We have already written about how important it is to draw up a competent business plan at the first stage of the search for an investor. However, not all businessmen know where to look next for someone who will agree to provide funds for the implementation of their project.

Nevertheless, there are several options, and each of them deserves close attention from the businessman.

Option 1. Close people

Search for investors to finance business - not an easy task. Therefore, it is desirable to involve as many relatives and friends as possible in this process. This option is ideal for those who are just starting their own business and have neither experience nor popularity. Moreover, loans from relatives and acquaintances are less risky.

If the project does not require large initial investments, it is quite possible to offer it to be financed by close people for a small percentage, which will be paid when the business becomes profitable.

Option 2. Businessmen

In all cities (especially large ones) there are a large number of businessmen who have already earned capital. Now they want to receive passive income by investing in some profitable business.

It is to such businessmen that it makes sense to apply for obtaining funds for the development of their own business.

Most often, merchants issue money according to one of 2 (two) schemes:

• in the form of a loan with interest payment;
• as a share in a new business project.

At the same time, it should be understood that the second method leads to a significant restriction of the freedom of decision-making by a novice businessman. Therefore, it is worth thinking several times before choosing this option.

Option 3. Funds

Another way to find investors for business are special funds - investment and promotion of small business. However , getting funds from such companies can be difficult .

You will have to prove that the new business project is viable enough. It should also be borne in mind that a newcomer to the field of entrepreneurship must have his own funds, which he wants to invest in the project along with those attracted. Therefore, funds are more suitable for those who already have an existing business.

For the investment decision to be positive , you will need to analyze the current activities of the company, as well as form a plan for its further development.

Those who are looking for an investor should also study the activities of public funds. They often give funds to the most promising business projects by organizing competitions for this purpose.

Option 4. Venture investment

This option is quite widespread in some developed countries. If you want to raise money in a business through venture capital investment, you should keep in mind that such funds invest only in risky projects with great prospects.

At the same time, business projects are most often financed. innovation sphere , Sciences , as well as IT technologies .

Less often, but still, venture funds invest in trade, as well as the service sector.

We wrote in detail about venture investments, in particular, what they exist and what they do in a separate article.

By investing in a business, venture funds want to receive a regular income. To this end, they draw up a share of the business. At the same time, they are the owners of a part of the company for only a few years, after which they sell it to third parties.

Option 5. Business incubators

A business incubator is a special platform created to implement various business projects. To receive investment funds through an incubator, it is important to draw up a competent business plan.

In addition, you will need to win a competition or successfully pass a special interview.

Option 6. Banks

If you can’t find an investor, you can try to get a bank account. However, getting a large enough amount is often difficult. Therefore, this method of searching for an investor is suitable when when you need a small investment.

Credit institutions present to potential borrowers enough high requirements. To receive money, it may be necessary to provide property as collateral, guarantors, and collect a large list of various documents.

If the applicant for a loan fails to fulfill at least one requirement of a credit institution, he will not be able to receive a loan.

In this way, search for an investor for business- It's not easy and it takes a long time. Therefore, a businessman will need a lot of patience. It is important to evaluate all possible options, analyze emerging risks. Then you can be sure that the search will be successful.

There is an article on our website in which we talked about where you can and how to properly issue an IOU - we recommend reading it.

Basic rules for finding investors and their investments

5. 5 important rules for finding investors 📌

Every day there is a huge number of various business projects that require investment of funds. The owner of an idea does not always have the necessary capital. However, most of the ideas require a quick start and development. In this regard, a huge the number of businessmen is in a state of searching for an investor to implement the project.

Often, this process is delayed, and often not at all. ends in failure. To increase the chances of success, it is important to follow 5 (five) basic rules. They allow businessmen to be more confident in finding an investor, as well as be smart about the selection process.

Rule number 1. The search should start as early as possible.

Every businessman must understand that Finding an investor is a long process. From the moment they start to the receipt of funds, a lot of time passes.

That's why start look for an investor as soon as possible. Ideally, this should be done already when future activities are planned, and it has also become clear how best to present the project's benefits to potential investors.

It is important to understand that the investor's risk is higher than that of the project owner. It is the one who invests money in a business that risks his capital, loss of time and reputation.

Therefore, he has the right to suspend the investment of funds or even negotiations if he decides that the risk level is too high for him.

Moreover, investors usually carefully study the company in which they plan to invest money. They analyze the history of the company, its successes and failures, prospects for further development. All this leads to the fact that it is better to start looking for an investor at an early stage.

Own funds invested in a business usually run out very quickly. As a result, a sharp rise at the beginning of the project can be replaced by a fall even before the start of investment flows, and this situation may alienate most investors.

Rule number 2. It is important to collect as much information as possible about a potential investor

When looking for an investor, it is not the best decision to cooperate with the first who will offer their capital. It is necessary to collect as much information as possible about the prospective investor.

In doing so, you should know:

• what areas he usually invests;
• possible volumes of invested funds;
• investor preferences regarding the method and principles of cooperation.

All collected data should be compared with the desires of the businessman himself. Collaborate with the best investor. It means the most optimal, and not large and popular.

It is important to understand that any interaction with an investor should take place in the form of mutually beneficial cooperation.

At the same time, both the businessman and the investor himself must imagine at what stage of interaction they are, as well as what will happen next.

A good investor, if he knows why, will greatly help in the development of the project. A bad one will spoil even a great idea.

Assessing the amount of investment worth understanding, which, if necessary, 50-100 thousand dollars it makes no sense to contact someone who traditionally invests millions. The same can be said in reverse: it makes no sense to go to someone who simply does not have them for large investments.

A large amount of information collected can make it easier for a businessman to participate in the negotiation process with an investor. You can think over a rough plan of negotiations in advance, as well as decide what questions you can ask the investor.

Moreover, if there is enough information can be predicted what questions the owner of the funds will ask the businessman, and decide how to answer them. Information about the investor's previous investments can be very useful during negotiations.

Even before meeting with an investor, a businessman must decide how he will behave in the negotiation process. The investor must believe that a businessman needs not just money, but mutually beneficial cooperation.

If a quality contact is established between the parties, you can be sure that the interaction will be beneficial for both parties.

There are many examples in history that with good relations between a businessman and an investor even with the manifestation of errors and small failures, they were still provided. In the end, success was achieved in the activity.

Rule number 3. The amount of investment must be carefully planned

The businessman must remember that the investment amount must be specified specifically in numbers, not a range. An investor will almost certainly refuse to invest if he is asked for an amount from 100 to 200 thousand dollars.

In this case, the owner of the funds may have a huge number of questions, which will almost certainly lead the negotiations to a dead end.

The businessman must tell the investor a specific amount , which should be reasonable. The size of the investment should take into account all possible scenarios, due to which the range could arise.

Rule number 4. Goal Focus

When developing company development goals for which you need to raise funds, do not cost them too much globalize.

Too big ideas, as well as a desire to cover a large number of issues, usually cause investors to doubt that it is possible to successfully implement them.

Therefore, the goals set by the businessman should be as specific as possible . They should be limited by the possibilities as well as the needs. The goals of a businessman should be specified even before he finds an investor.

Even in those cases when it is planned to develop the project to a global scale in the future, it is not necessary to immediately describe this idea globally. Such interpretations usually repel investors.

Those who have experience in investing, as well as developing business projects, agree with the opinion that with globalization, forces and resources are dispersed, but proper efficiency is not achieved.

Therefore, an investor should be sought under solving specific problems and business matters.

Rule number 5. Be as honest and open as possible

In the process of negotiating, and subsequently in the preparation of reports, a businessman should not lie and keep back.

In the process of doing business, it is quite normal to deviate from the original plan, but such facts cannot be hidden from the investor . He has the right to be aware of the current situation.

At the same time, it is important to explain to the investor the reasons for the deviation from the plan, what it can lead to, and how it is planned to proceed further.

Compliance with all the above rules increases the chances that a good investor will be found. Namely, this is the key to a successful start of any activity.

6. Providing professional assistance in finding investors 📎

Those who cannot find an investor for their business on their own can turn to professional assistants.

There are special platforms on the Internet that help not only those who want to invest, but also those who are looking for capital to develop their activities.

The most famous Russian-speaking are 2 (two) sites:

1) EASTWESTGROUP

The resource specialization is search for investments for investments in both active and mothballed businesses. To use the services, it is enough to register, and then contact those who provide the funds. The resource allows you to save not only time, but also energy.

Company specialists conduct business analysis, after which its strengths are determined. It's done absolutely free and helps attract investors. The resource has been investing for more than ten years.

By registering on the site, a businessman gets in touch with several dozen investors at once. This greatly increases the chances of receiving funds. The cost of the investor search service is calculated individually for each user. However, no payment is required until the funds are received.

Using the site is very easy. It is enough to go through a few steps:

• submit your application;
• get a free consultation from a company employee;
• sign an agreement with the company on the provision of intermediary services;
• the resource itself conducts negotiations with the investor;
• businessman concludes a mutually beneficial deal with an investor.

2) Start2Up

This resource is a kind of bulletin board, which hosts investor proposals, entrepreneurs, startuppers looking for business partners.

Thanks to the site, those who have funds can find where to invest. At the same time, novice entrepreneurs have the opportunity to conclude an agreement with investors who are ready to support their project.

All ads posted on the site are divided into groups depending on the region, as well as the field of activity.

The most popular business areas here are:

• the Internet;
• IT technologies;
• education;
• art as well as culture;
• the science;
• the property.

There are also other promising areas of activity.

The users of the site are hundreds of businessmen, as well as investors. These are people not only from Russia, but also from Belarus, as well as a number of European countries. Therefore, the chances of those registered on the site to find an investor increase significantly.

There are hundreds of offers on the site. buy out a startup, invest in different lines of business, as well as improve existing production.

In addition, with the help of the project, it is possible to acquire or sell the property of ready-made companies. You can follow the news of the portal using the Facebook group.

Thus, those who find it difficult to find an investor for their project can turn to popular Internet resources for help.

Don't forget about crowdfunding sites. Thanks to (a type of crowdfunding), it is also possible to attract capital from interested site participants for a share in a startup.

7. Answers to frequently asked questions 📑

The topic of finding investors is quite complex. Therefore, businessmen in connection with this have a huge number of questions. The publication would not be complete if we did not answer the most frequently occurring of them.

Question 1. Where can I get money for my business?

Raising funds to grow a business can be a daunting task for any aspiring entrepreneur. This is especially true for the formation and further startup development. Develop any business project without raising funds practically impossible. About what stages it should go through, how to attract money, etc., we wrote in a separate article.

Each aspiring entrepreneur is looking for his options for finding an investor. Therefore, it is so important to reconsider ways to raise funds.

Method 1. Accumulate

This option is the easiest. Having accumulated money, an entrepreneur will not become financially dependent on other people, he will be able to run a business completely independently, without reporting to anyone and without giving part of the profit to anyone.

At the same time, in order to accumulate money, you only need great desire, as well as financial self-discipline. It is enough to optimize your own expenses in order to start accumulating money. With due diligence, already 6 -12 months you can raise a significant amount of money.

This option is suitable for those who know how to save. If you manage to save for a major purchase or a vacation, this fundraising method is sure to work for you. Moreover, this option helps to learn the optimal attitude towards money, which will definitely come in handy in the future when implementing a business project.

Method 2. Take a loan

Those businessmen who are well aware of the rules of financial discipline may well take a bank loan for the development of activities.

The danger of this method lies in the fact that at the very beginning of doing business, companies almost always work on the verge of loss. Therefore, there is a high probability that there will simply be nothing to pay off the loan.

This method is suitable only for those who are confident that the business will become profitable even before the start of loan payments. It should be understood that lending institutions rarely invest in startups. Much more often they issue loans for the development of an existing business. However, the decision is always made individually.

A businessman should definitely take into account that interest in most cases is at least 15%. In addition, it is important to contact banks with a good reputation.

To simplify the task for businessmen, the table shows the best banks for small and medium-sized businesses.

Method 3. Government subsidies

The state is trying actively support small businesses. Any novice entrepreneur can participate in competitions for subsidies.

If you wish, you can apply to the Employment Center for a grant for self-employment. The amount of this program varies by region, but on average it is 90-100 thousand rubles.

In addition, so-called incubators have been created in the country (most often on the basis of the largest higher educational institutions teaching the subject "economics").

Such structures are financed from the budget. The purpose of such organizations is to create favorable conditions for business development.

Method 4. Close people

This option can be considered an extreme case, since doing business with relatives and friends can be very difficult. Nobody likes to give away their money just like that, so even close people should be interested. You can offer them a share in the business.

There are also advantages to this method of raising funds. Firstly, it is easier to agree on the timing of a refund with loved ones. Secondly, the receipt of funds is much faster, since it will not be necessary to collect a large number of documents, and also wait for the decision of third parties.

Method 5. Private investors

In some cases, there are simply no other options than to borrow money from private investors. You can get funds from private investors quite quickly and without any problems.

Most major cities have websites that host relevant ads. At the same time, it is enough to apply for a loan verify your identity and write a receipt. Some private investors require mandatory notarization of this document.

Question 2. Where to start looking for an investor for a small business?

There are several basic steps that will help a novice investor navigate the procedure for finding an investor.

Step 1. Making a plan

A businessman must develop a quality business plan that he will use as a presentation to individuals who invest in the business. It is the plan that will help to convince the investor that the businessman's project is capable of generating significant profits.

Important so that the business plan contains not only a description of the company itself, but also a study of the market position, as well as further development prospects.

Step 2. Choose an investment scheme

There are several options for raising funds. Investors can buy new equipment, providing a loan at certain percentages. Others invest by demanding in exchange for a share in the company .

In any case, a businessman should decide in advance which of the schemes is most suitable for him. It would be useful to indicate this in the business plan itself.

Step 3. Help from professionals

Experienced businessmen can provide valuable advice on both raising funds and running a business.

Step 4. Search for Internet resources for investing

There are sites on the Internet that allow you to present projects to business angels. After posting information about themselves on such resources, businessmen often note an increase in the number of proposals from investors.

Question 3. I am looking for an investor to open a business from scratch / into an existing business. What portals/sites and forums should I look for?

Popular Internet resources (websites, forums, portals) for searching for investors

The development of Internet technologies has greatly simplified the procedure for finding investors. There are a fairly large number of Internet resources that help in this difficult task.

Here are the most popular ones:

1. Starttrack.ru is a popular investor search portal. It is possible to post information about your business project. If it passes the approval, the chances of attracting investors will increase significantly.
2. Ventureclub.com- a resource that allows you to find enough large investors.
3. Napartner.com- is a regular bulletin board where investors place information about themselves.
4. mypio.ru- here you can place information about your business project. Announcements on this portal are viewed daily by a large number of investors.
5. Startuppoint.com- a project with a huge number of proposals from investors. If today there is no suitable option here, it is quite possible to post information about the project for viewing by potential investors.

Question 4. Where to look for an investor for a startup or how to find an investor to implement an idea?

A businessman must remember that the most suitable place to look for an investor is where the maximum number of them gather. It can be various exhibitions, as well as presentation promotions. As part of such events, round tables of cash owners are usually organized where you can get to know the future investor. This option is quite simple, but its effectiveness is highly questionable.. Such events are extremely rare, it also happens here to meet the right person. not so easy.

Another easy option- investing in a new business project by diverting funds from an old, already developed one. Naturally, this method is unacceptable for novice entrepreneurs.

On various Internet resources you can find private investors. On the net you can find a large number business investment proposals. But don't forget that areas of large accumulation of funds are teeming with a huge number of scammers. Often, businessmen are offered to start investing under various pretexts to deposit a certain amount of money.

A good way to attract investment is considered assistance of investment brokers. For a small commission, a businessman shifts the worries about finding an investor to someone else's shoulders. In this case, you will need to pay only upon the fact of issuing funds.

The help of business angels is often considered effective.. However, today there are too few of them for a large number of applicants. In addition, they often require a significant share in the business being created.

Incubators are not intended to invest in projects. They are created to provide business with optimal conditions for development.

Question 5. How to search for foreign investors? Where to find foreign investors who will give money?

At the moment, there are several ways to find a foreign investor who is interested in your business:

1. Using the intermediary services of public or private commercial structures in the search for investment proposals;
2. By posting information about the project (startup, ideas) on specialized sites (bases of investment projects);
3. Participating in various specialized exhibitions and fairs.

Many different agencies successfully operate on the investment market, which provide professional services in finding foreign investors. It is important for potential foreign investors to see the prospects of your business project.

8. Conclusion + related video 🎥

If you have read the publication to the end, be sure that you have received enough information to attract an investor. It is important to remember that this process is not easy and requires high-quality preparation.

A businessman must remember that even if he finds enough funds, there is no guarantee that the project will be successful.

The search for an investor is only the initial stage, a small part of a long and difficult journey.

Having taught money, a businessman must make every effort to achieve the desired return from them.

In conclusion, we suggest watching a video about collective investment (crowdfunding) - what is it and how does it work:

As well as an interesting webinar "How to attract investment in business" from the Chamber of Commerce and Industry of the Russian Federation

The site magazine team wishes you good luck and success in attracting a good investor and, of course, success in further business development. If you have any comments or questions about the topic, then ask them in the comments below.