01Mar

What is an investor for?

We all understand perfectly well that at the initial stage it is very expensive to create a business.

Moreover, regardless of the field of activity, for the most part, the costs will be:

• to a suitable location;
• For the necessary equipment;
• Looking for employees.

Then, depending on the specifics of the business, there will be other costs:

• Additional software;
• Renovation of the premises;
• Purchase of consumables;
• Etc.

And in most cases, the initial costs are so high that it becomes very difficult to pull them alone, or even as a team.

But in addition to the initial costs, many companies feel a lack of funds for full and harmonious development. It is not uncommon for a young team to have great prospects - their products or services become really in demand on the market, but due to lack of finances they miss out on the lion's share of the profits.

For example, they cannot hire additional employees, or purchase more equipment, or expand the premises, and so on. That's when they need an investor in an existing business.

We draw a conclusion: companies need to search for investors at the initial stage of their development in order to cover the lion's share of the costs of implementing their business. This is the main and most important reason why many aspiring entrepreneurs are looking for free cash.

The second reason is the search for funds for the development, expansion and implementation of any new ideas. This is typical for those companies that have found free funds to start, but due to some reason do not have enough for development.

How to find an investor for a business from scratch

Before moving on to the practical part of the search for an investor, you should decide on a couple of theoretical points. Knowing the wishes of the investor, you can understand how to look for him, and what he needs to give.

When looking for an investor, it is important to remember one detail:

Investing means making a profit. This rule should be kept in mind by every businessman who wants to interest a potential investor in his business. No one will be interested in "innovative breakthrough", "original idea", "new technologies" if they do not promise tangible profit. With all investors, you need to speak the language of money and risks. Only then can they really be interested.

Based on this rule, the following can be distinguished:

• To get cash investments, you need to convince the investor that his investments will be profitable;
• You need to prove why your project is more interesting than those of direct competitors;
• Show what prospects you have for further development in the market.

Investors who do this professionally can literally determine in 10 minutes whether a project will be profitable or not. And when they invest in a business, they don't do charity work. The only motivation for investments is to get the fastest profit, which should be higher than not only the average bank deposit, but also the lion's share of competitors.

It follows from this that the main task is not to find a private investor, but to interest him, convincing him to invest his money in your project.

What information may be of interest to investors

Now, based on an understanding of why people generally invest, you can begin to answer questions that may be of interest to a potential investor.

But before that, you need to understand one simple thing:

It is not necessary to perceive an investor for a business as a creditor. He voluntarily invests his funds, and in case of failure, they will not return to him in any way. That is why for aspiring entrepreneurs, an experienced investor will be a partner who can help in case of small setbacks and share the success.

That is why you need to work not only for the benefit of yourself, but also for your business partner. You invest your ideas, effort, time, money (to a lesser extent), while the investor invests his money, participates in making important decisions for the company.

This is a kind of shareholder who has the right to vote, to whom they are obliged to listen, but not always follow their lead. Keeping a balance between the interests of the company and investors is very important.

So, you have found a person who is interested in investing in your company.

What does he need to tell about the business:

• The main idea of ​​the business;
• Required amount of investments;
• Estimated return;
• Risks.

This is all that an investor needs to know at the beginning of your cooperation. When he evaluates the volume of proposed investments, compares profitability and risks, and if he likes your idea, then the second stage will come - a detailed survey about the business.

That's when you have to reveal all the details: why your idea is better than the competition; How are you going to spend the money and on what? when will the business expand, and to what extent; what guarantees can you give and other questions.

It should be understood that laying out all the trump cards at the beginning is not the best idea. It is quite possible that a person will not be interested in business in this area, or he can implement this idea himself.

Profitability for the investor

Russia has an excellent rate of return on bank deposits - the key rate Central Bank. By adding 2-3% to it, depending on the region, you can reach the average rate for deposits for individuals and legal entities with large amounts of money.

For an investor, this is the minimum rate of return that he can get by simply depositing his money into a bank account. Consequently, a businessman must show a profitability at a distance higher than a bank deposit by 1.5-2 times. This is typical for small and medium businesses. For a large one, income in the amount of a bank deposit is possible due to the scale and prospects for rapid expansion.

To summarize: Investors are primarily interested in the return on their own investments.

That is why before investing money, analyze the following parameters:

• Perspective of the idea;
• Required amount of investments;
• Risks and returns.

If these points suit both parties, then there is a further stage of negotiations, in which the investor tries to get the maximum detailed information about the business and evaluate its future prospects. A competent business plan is able to answer all the questions that may arise during negotiations, so its preparation is mandatory.

Where to look for an investor for a business or startup

We have sorted out the basic information about what you can tell the investor. Now about where you can find an investor.

Relatives, friends, acquaintances

One of the most controversial ways to raise money. Suitable for starting a small business by promising people you know a return on their investment when the business starts to generate income.

At the same time, among friends and acquaintances, you can really find like-minded people who may be interested in the idea, and create a whole team that will be able to share all financial losses and compensate for each other's shortcomings.

You can borrow money from relatives to open your own business if necessary. a small amount, and there is any guarantee of its return.

Funds

There are two types of funds that can help when looking for investments for a business: small business assistance funds and. Regardless of the type, it will be extremely difficult to receive funds in such funds.

You need to get managers interested in your business. And if in other cases an innovative idea, an advantage over competitors and a quick payback can beat an average or even low profitability, then in this case the return on investment comes first.

Investment funds are only interested in one thing - profitability. They are willing to invest their money at great risk in ventures that will bring them great returns. But if a businessman talks about a long-term investment, without guaranteeing a profit in the first few years, such a business is unlikely to be financed.

In order to assess the prospects for their own investments, the fund will need time and the maximum information that you can provide. A group of analysts will analyze, so the more information, the higher the chances of receiving funds.

Investment funds - an association of many investors who invest free cash in order to make a profit.

And often these investment funds have less money at their disposal than a few private investors who are also ready to invest their money in interesting ideas, if only someone will interest them. But it should be understood that it is much easier to apply for investments in an investment fund than to a private investor, because for the first one you just need to contact the company, and in the second case - somehow find contact with a very famous and rich person.

State funds are one of profitable options receiving funds if the idea is truly innovative. Competitions are held periodically, the winners of which can receive a grant for which entrepreneurs can implement all their ideas. Enlisting state support, if possible, is the best option.

Successful businessmen

One of the best and most profitable ways to find investments is to work with successful businessmen of the city or region. Regardless of the scale, in the region you can find many successful businessmen who have already gone down this path, have profitable enterprises and free cash. It will be enough to interest them in your idea and your personality, and then they will invest their money in an interesting project.

At the same time, one of the clear advantages of working with successful businessmen is that they can educate and explain some of the points that they themselves have gone through. Many entrepreneurs are happy to take under the patronage of beginners, explain to them how to cope with difficulties, minimize costs, and make a profit. Especially if cooperation can bring benefits to both parties in the long run.

Collaboration usually takes place under two conditions:

• in the form of a loan;
• In the form of buying a stake in a business.

The second option is preferable for both parties. It involves the participation of the investor in the development of the company, this makes it possible to avoid most mistakes and take advantage of the connections and relationships of a more influential person in order to improve their own.

If a businessman cannot help with finances, it is recommended to ask him which of the people he knows can help and be interested in the idea. Such a small psychological trick will allow you to learn about other businessmen, and with a recommendation from one of your colleagues, you can count on something more.

A method that is suitable only for, and not in all areas. – financing by individuals of interesting projects. Often this is for some kind of reward. Leading companies that are developing some interesting new products for retail and wholesale are looking for free cash.

Banks

If all of the above methods of attracting investors did not work, you need to apply for loans from banks. Different lenders have different requirements for potential borrowers, but the gist is:

Banks don't want maximum returns. They are interested in stable receipt of funds and repayment of the loan. That is why credit organizations will study your business plan for stable income generation and, accordingly, return of funds. They are more interested in guarantees than profitability.

It is dangerous for an inexperienced entrepreneur to take a loan from a bank, especially if it is quite risky. If the idea does not work out, then the bank will by all means demand a return of funds, up to the sale of the borrower's property.

That is why it is worth taking loans for a small business, which will pay off in 4-5 months and then be able to generate income. And if it does not work out, then the financial blow will not be as strong as the loss of money for the implementation of a medium or large project.

Venture investments

One of the most popular and effective ways to raise funds for businesses in innovative areas. Venture investments are investments of funds (associations of investors).

The nature of venture investments is their high riskiness. They provide cash to many companies that can change the world with their innovative ideas.

Also, venture funds can finance ordinary entrepreneurs. But the main condition will be dynamic development and constant expansion.

Venture funds are a kind of motivation for the constant expansion of business, spheres of influence and products. The most striking example of a company that existed at the expense of venture capital funds is Apple.

Search for an investor: step by step instructions

Now we publish a detailed and step-by-step plan on how to find an investor to open a business:

Step 1. Drawing up a business plan.

As mentioned earlier, a good business plan for an investor will always bring several advantages to a businessman's piggy bank.

What should be in a business plan:

• Description of the idea;
• Economic calculations;
• Payback period of the project;
• Development prospects;
• Analysis of competitors;
• Other information.

With and subsequent presentation, you need to carefully concentrate on all the little things. You need to pay attention not only to all the information inside, but also to your appearance, presentation of material, confidence, etc.

The use of tables, graphs and other graphic materials is only welcome. They help to better perceive information, focus on the right moments.

It will be useful to rehearse the presentation of the business plan at home several times. Also, be prepared for additional questions.

Step 2. Choice of the form of cooperation.

Before you start looking for an investor, you need to decide on the proposed model of cooperation. Of course, you can completely rely on an experienced businessman who himself will offer an interesting way for him to interact with the business, but then you lose your dominant position. We must not forget that it is not the investor who dictates the conditions, but the businessman.

In total, there are 3 ways of cooperation:

• Receiving a percentage of the amount invested in the business;
• Receiving a percentage of the profits for the duration of the entire business;
• Getting a share in a business.

Having chosen the method of cooperation that interests him, a novice businessman must indicate this method of cooperation in his business plan.

There are cases when investors do not agree with the chosen model of cooperation. You should analyze this situation and understand whether it is worth following the lead of a more experienced businessman, or whether it is better to insist on your own.

Sometimes it is better to give up your principles and receive funds for the implementation of the project, and sometimes refuse the offer and find another interested person.

Step 3. Search for an investor.

After all the preliminary work is completed, it is necessary to proceed to the very procedure of searching for an investor. You need to work in several directions at once, making acquaintances both in the field of entrepreneurs and investors, and asking your friends.

By following the list above, you can try various options attracting investments, and if nothing happens, then you should contact the bank.

Step 4. Negotiations with potential investors.

It is advisable to find several interested persons who would be willing to invest free money in the development of your idea. Then you can negotiate from a position of strength and dictate terms. But newcomers rarely find more than 1-2 interested people, which is why you should approach the negotiation process very carefully.

To convince the investor that he will make a profit is the main task of these negotiations. At the same time, it is worth remembering that they will look not only at the prospects of your project, but also at you, so you should monitor your speech, appearance and manners.

It is desirable to answer all the questions that potential investors will have. This will ensure that you are really working on your business idea, and there will be no stupid mistakes during the implementation phase.

Negotiations are the most important part when looking for an investor.

Step 5. Conclusion of the contract.

After the negotiations were successful, you will need to conclude an agreement with the investor. It is advisable that you attend to the creation of the contract yourself and in advance. You should contact an experienced lawyer who can draw up an agreement that is beneficial for both parties.

Important points that should be in the contract:

• Term;
• The amount of investment;
• Form of cooperation;
• Rights and obligations.

Investor search portals

Now there are various portal sites that are intermediaries between investors and novice businessmen.

We present you a list of 5 sites where you can find investments:

1. Venture Club is a real treasure for investors and startups. Anyone who wants to find investment in their project can apply to the site, and after a thorough interview, submit a project. Investors who are interested in the offer will be able to evaluate the idea, financial prospects, and discuss the details. It is attractive for businessmen because there are many investors on the portal and the company directs all its efforts to attract additional people to the ranks of investors.

2. start2up is a platform that brings together investors, startups and people who want to do business together. The service is more suitable for finding potential partners to open a business. The site also contains information on the sale of various commercial assets, which will also be useful for a novice entrepreneur.

3. Napartner– a platform for finding investors in projects in various fields. If you take a closer look, you will notice that many startups have questionable ideas and ways to implement them. Respectively good projects here they are worth their weight in gold and find investments in short time. At the same time, the number of investors in relation to the number of start-ups does not cause optimism - there are 10 times fewer people willing to invest money than projects. Suitable as one of the ways to attract a potential investor.

4. Starttrack is the best service for serious companies. Despite the fact that the number of companies that have received investment in this system is small - only 36, but nevertheless they are still functioning, generating income. Starttrack is a community of investors that promotes the idea of ​​investing as one of the types of earnings. At the same time, we can safely say that any community of investors is an excellent search for a partner to create a business. It should be understood that you can access this service only if the project is serious and the idea is attractive.

5. Boomstarter is the most popular crowdfunding platform in Russia and the CIS. For a startup in the IT, Gaming or original field, this is an ideal opportunity to find an initial investment. In most cases, the main idea is presented as a product/service. Users, by making a contribution, should receive a reward that would interest them.

9 rules to follow when looking for an investor

Rule number 1. The search for an investor should be done as early as possible.

In order to find an investor who will agree to invest their money in the project, it will take a lot of time. You need to look for new business acquaintances, talk with interested people at the stage of developing a business plan. This will greatly reduce time costs and simple ideas.

It should also be understood that many investors need time to assess the real prospects for the development of a particular company. And when interacting with banks or investment funds, the time to analyze all aspects of a potential client's business activities will be quite large.

Rule number 2. Collect the maximum amount of information about the investor.

Collecting as much information as possible can help in two directions at once: screening out candidates and conducting better negotiations.

For the first you need to know:

• What areas are the investor interested in;
• Where do you usually invest money?
• In what volumes;
• What profit is he claiming?

It is important to understand that it is not worth asking for a small amount of money from a person who usually invests millions in a project. He just won't be interested in your offer.

To negotiate, you may need everything you can find out about a potential investor. After all, in fact, it will be the process of selling some share in the business (to one degree or another). And for sales, it is always important to find the client's pain points and put pressure on them, pushing the fact that it is you and the investment in your business that can allow him to solve all his problems.

Rule number 3. Plan your investments.

It is necessary to name a specific amount that will be required from a potential investor. You can not operate with ranges, only in extreme cases, when you are not sure about the stability of the price in a certain period of time.

You also need to understand that you should not ask for more or less money. This will characterize you as a person who did not think enough about his business plan.

Rule number 4. Sounding realistic goals.

You may have the most ambitious goals, but the investor will not need them. To set the goal of “entering the world market” of a company that hasn’t been around for a month is at least very optimistic. It will be much more interesting for an investor to hear "entering the regional market and obtaining a 20-30% share in such and such an area." But in the meantime, you will always have to justify the adoption of a particular goal.

Rule #5: Don't be shy about your idea.

It is hard to imagine that Henry Ford was afraid to tell others about his ideas. On the contrary, he openly stated that he would create such a device in which he could sit down and drive down the street without additional traction. You also need to deal with your business ideas in negotiations.

Feel free to express your ideas, even if it seems to someone that they are far from ideal and difficult to implement. Remember to submit! The more confidently you speak, the better you are perceived.

Rule #6: Putting together a team is the best idea.

All promising projects began in the head of one person. But it can be difficult to realize all the ideas alone, and this is a generally recognized fact. It is best for novice businessmen to find a team of 3-5 people who would at the initial stage be engaged in various matters of the company, solving each of their issues, and becoming professionals in their field.

It is important to assemble a team of like-minded people who will burn with one common idea and spend all their energy on implementation. Those who hack have no place in such a team.

Rule #7: Consider the benefits of working with you.

Speak to the investor in his language. Promise him a profit, then operate with the prospects of growth and expansion. At the stage of business planning, you should carefully think about the question “What will my project be good for?”. Having answered it for yourself, ask the same question, but from the point of view of an investor.

Rule number 8. Try to be as close as possible to investors.

Attend various meetings of potential investors - business forums, conferences, and other events of an all-Russian scale. At one such conference, you can talk with a hundred different people who, in one way or another, will be interested in investing in your business.

A little psychological trick: don't say you came looking for an investment. Try to look like one of the investors - a person with money. Then you can be one of all and you will be treated with great trust and sympathy.

Rule number 9. Honesty is the best weapon.

When looking for a potential investor, you need to understand that you will be mutually beneficial partners. That is why you should always provide the most complete and honest information about the company's affairs, its prospects and your plans.

More often than not, it's better to hear the real "I'd like to sell the company in a year for a few million dollars" rather than "I'll be concentrating on meeting the company's goals and expanding it and going global." In the first case, honesty and transparency, in the second, nothing but ornateness and avoidance of an answer.

Following these tips is simple enough, but following them will help you gain an advantage in negotiations over other similar seekers of free finance and interested investors.

Conclusion

In Russia, the culture of investing one's own money is just beginning to take shape. This is confirmed by numerous surveys among ordinary citizens. Many people still prefer to invest their money in low-yielding and illiquid real estate, rather than buying shares in some young and growing company. But investors are of great importance for the development of business within the country.

What do we have in Russia now: a large amount of free cash from large businessmen, the desire of banks to finance only stable companies, and the development of investment funds that are interested in interesting and profitable ideas.

What does it mean: Russia has a large amount of free cash that investors would like to invest in some interesting projects. Also new policy Central Bank, which says in plain text that banks should also switch to an investment model of the economy, inspires confidence and optimism in investors.

Finding an investor is one of the key steps in creating a business from scratch. Raising funds will allow not only to create a business, but also to develop, reaching a new level.

Both individuals with sufficient capital and companies interested in making a profit can act as investors. In order to interest an investor, you must always talk about money and income. Only after that follows the prospects of the idea, risks and other factors.

Drawing up a competent business plan and planning negotiations with an 80% probability will tip the scales in your favor. That is why you should not only understand your own idea, but also be able to correctly present yourself.

Last update:  03/09/2020

Reading time: 16 min. | Views: 14918

Hello, dear readers of the financial magazine "site"! Today we will talk about investing in business, start-ups and other business projects, where and in which business areas it is better to invest.

After reading this post, you will know:

• For it to be invested in business - the main advantages and disadvantages;
• What types and ways of investing in business exist;
• What are the best directions for investing in startups in Russia this year;
• What are the risks of such an investment and how can they be reduced.

At the end of the article, you will find answers to frequently asked questions about investing in a business.

The publication will arouse the interest of all those who are concerned about the problems of investing in business. It will be useful for both beginners and those who already have experience in such investments.

What are the main pros (+) and cons (-) of investing in a business, what types and methods of investing in business projects exist, what are the risks when investing in startups - read about this and more below

Investing in a business can provide a comfortable existence for the investor. Such investments allow you to receive. This is an activity that, when properly managed, requires a minimum investment of effort, but at the same time provides a stable profit.

Most citizens living in the former Soviet Union have a misconception about long-term investments that can provide a stable income. They believe that only those who initially own significant capital, certain talents and luck. In addition, our citizens are sure that investing in business is risky especially in the current crisis situation.

Eventually the majority of our compatriots do not take any steps to increase their well-being. They only dream all their lives about how to get big money with a minimum of effort.

Actually a chance to become financially independent everyone has. To do this, it is enough to radically change your thinking, switch to the financial area, stop working for others and start working for yourself.

Investing in the development of your own business allow not only to receive income, which practically does not depend on the time and effort spent on it, but also to gain confidence in the future. Moreover, high-quality investments make it possible to implement even seemingly unrealistic ideas and plans.

At the same time, in modern world even those who do not have a lot of capital can start working for themselves. Furthermore, economic education at the initial stage not would need, because in the modern world you can find a huge number of areas for business development that are not related to the economy.

2. Advantages and disadvantages of investing in a business 📑

The process of investing is always accompanied by risk. Investing in a business is no exception in this sense. As in any other activity, such investments have its advantages and disadvantages.

2.1. Pros (+) of investing in a business

Among the main benefits of investing financial capital in a business are the following can be distinguished:

1. The investor gets the opportunity to influence the activities of the organization as well as decisions made by management. Sometimes it is the investor who takes over the management of the firm. At the same time, competent management allows you to develop a business, increase its profitability. As a result, the level of profitability of invested funds also increases.
2. Investments in business are distinguished by a wide choice of forms and directions for investment. You can invest in companies engaged in the production of goods, providing any services - the choice here is really huge.
3. Opportunity to become an investor with a small capital . At the initial stage, it is not necessary to invest huge sums of money. It is enough to acquire a small part of the company. If the investment is successful, then you can buy shares owned by other people.
4. If investment in a business is seen as an activity that brings passive income, they are distinguished by simplicity and accessibility b. The investor does not need to have any knowledge.
5. Investing in a business is one of the few types of investments, in which the assets have a real form. The result of investment activity can be seen in the company's assets.
6. Investing in entrepreneurship , the investor can choose a company operating in the area that is most interesting and familiar to him.
7. The income from such investments in the long run is not limited by anything.. With the right business management and the achievement of a leading position by the company, there is every chance of achieving monthly profits at a level well over 100%. Over time, the better the company in which the funds are invested develops, the higher the level of income of the investor will be.

2.2. Cons (-) of investing in a business

Despite a significant number of advantages of investing in a business, this type of investment also has a number of disadvantages:

1. Investing in a business comes with a high risk of losing money . With the wrong approach to investment, you can lose not only part, but also the entire invested capital.
2. Legislative restrictions . Some types of entrepreneurial activity are significantly limited by legislative acts, regulatory and other government agencies. Corruption is highly developed in our country, so it is important to take this shortcoming into account.
3. An unexpected turn of events . Entrepreneurial activity does not always move exactly in the direction in which the owners and investors plan. There is a risk that such events will unexpectedly occur and render the investment ineffective.
4. In the case of equity investment in a business, there is a possibility of disagreements. If a conflict occurs between investors, and they fail to agree, one of them may decide to exit the business, taking their funds. This will inevitably affect the profitability of the project.
5. If you use the active investment option, you will need certain knowledge and experience. In this case, the investor will have the opportunity to maximize the possible income.
6. Return on investment in business is often unstable. Profit in different periods of time can vary greatly, changing under the influence of a huge number of factors. Under exactly the same initial conditions, different firms can bring the investor different returns. When investing in a business, you have to constantly study the market and adapt to it. This is the only way to get the most profit.
7. Often additional financial contributions are required.. If you do not invest additional money in the business at some point, you can get a significant decrease in the profitability of previous investments.
8. Profits will not come immediately. Since investments in startups are long-term, it will be possible to receive income only after a sufficiently long period of time.

Thus, investing money in a business has its advantages and disadvantages. It is important to keep them in mind and take them into account in the investment process.

Separation of investment in business by features

3. Classification of investments in business and their types 📊

Despite the fact that business investments seem simple enough, they are very diverse, each type has its own nuances. Therefore, it is important to classify them.

This can be done in several ways:

Sign 1. By ownership

According to the right of ownership, investments in one's own and in someone else's business are distinguished.

If the investor at the initial stage has sufficient capital, as well as knowledge, experience, and he wants to work for himself, you can invest in creating your own business. Many investors consider this option to be the most interesting.

The advantages of this type of investment are:

• opportunity to be realized;
• maximum return on investment.

There are disadvantages to investing in your own business.

Among them are the following:

• a high level of risk, since it is not easy to predict the development of events when creating a business;
• the need to have certain knowledge and skills;
• not only material investments will be required, but also a significant investment of time and effort;
• great initial investment.

As for investing in someone else's business, this method is much simpler. In this case, you do not have to personally deal with various organizational issues. After investing money, the specialists themselves will deal with the project: implement and promote it.

Sign 2. By the volume of investments

It is possible to classify investments in business and by the volume (share) of investments.

In this case, allocate:

1. Full funding of activities. In this case, the financial burden falls entirely on one investor. Such investment is most often found in the case of developing your own business.
2. Partial funding, which can also be called equity participation. At the same time, the funds received from investors make up only a part of the capital of the company being formed.

Sign 3. By investment stage

You can classify investments in a business and by the moment at which investments are made:

1. Investing in startups is carried out at the very beginning of the creation of activities. In this case, there is an idea, the development of which is planned to be carried out using funds raised from investors.
2. Investments in existing projects. Often, business development requires additional funds that are attracted from investors. In this case, the company already exists, is engaged in a certain type of activity, has its own customers, and brings a certain profit.

Sign 4. According to the form of profit received

On this basis, one can distinguish active and passive income. In the first case, the investor usually also performs the functions of the head of the company. With passive income, the coordination of activities is shifted to the shoulder of a hired manager.

Sign 5. By appearance

By species characteristics, investments in a business can be direct and portfolio.

• Direct investment is the investment of money in the assets of a particular company.
• With portfolio investments, the investor's capital is distributed among the shares of several organizations. In this case, the totality of acquired shares of various companies is called a portfolio.

The main classifications for ease of perception are summarized in the table:

Thus, there are a huge number of types of investments, which are distinguished according to different criteria.

Popular ways of investing (entry) in business projects

4. 7 main ways to invest in business 💰

Many people think that investing in your own business is the only way to go. However, there are a huge number of options for such investments, differing in the degree of investor participation, the required amount and other parameters.

Below are the 7 main ways to invest in a business:

Method 1. Own business

This method is usually thought first of all by those who hear the concept business investment.

Using this investment option, you will need to invest in activities not only money, but also your own strength and time. That is, this way of investing is an active income.

The return on investment does not start immediately. But there is a significant plus for the investor - all profits will belong to him undivided.

Many people dream of owning their own business. But it should be understood that not everyone is able to lead and develop it. Here you need to invest soul, experience and knowledge, a lot to learn.

Method 2. Equity in business

This option of investing and creating a business is one of the most popular. Most companies, occupying a leading position in the world, appeared precisely thanks to this method.

The popularity of this method of investing is largely due to the fact that not everyone who has money can run a business on their own.

It often goes like this: one partner contributes almost all the necessary money, the other one manages the company.

Usually the degree of influence, as well as profit shared between partners in accordance with the shares in the business owned by them. In order to avoid disagreements in the future, it is desirable to stipulate all the conditions of interaction immediately and fix them in the share agreement.

Method 3. Investing in startups

In this case, investments are made in new projects. Most often, at the stage of investing, there is only an idea. At the same time, the one who developed it does not have the money to implement it.

A huge minus of funds is too strong dependence on stock market catastrophes. At the same time, significant diversification of assets will not even help. Also, you can get income by purchasing shares only during the growth of the market.

The advantage of such investments is passivity. The investor does not need to do anything, the mutual fund managers work for him. Moreover, there are no commissions. All profits and losses are made up of the difference in the share price.

Method 7. Hedge funds

In the CIS countries, such a tool is still poorly distributed. In fact, they are similar to mutual funds, but they can receive profit by speculating securities as well as in the form of coupons and dividends. Therefore, they may well generate income during periods of market decline.

Only large investors can participate in this type of investment. Hedge Fund Entry Begins from 100 (one hundred) thousand dollars.

Thus, there are 7 main ways to invest in a business. However, if you look more broadly, absolutely all investments sooner or later end up in business.

Current directions of investing in startups in 2020 in Russia, where you can invest money profitably

5. Investing in startups - TOP 13 best directions in Russia in 2020 where you can invest money 💎

The startup market in Russia is becoming more and more popular, the volume of investment in it is growing every year. So everyone who decides invest your money in a business, it is important to know which startup areas are considered the most in demand.

Directions for investment are gradually expanding. However, over a long period of time, the leaders are unchanged. These include IT projects (), as well as small businesses, including those that are conducted using franchises (For more details and details, we wrote in a separate publication).

The energy sector lags slightly behind the increase in investment. Oil prices are unstable, people are paying more and more attention to the environment. Therefore, in the field of energy, the most popular among investors are projects related to the creation alternative ecological energy sources.

Let's figure out which areas of investment in a startup are the most popular at the moment. Experts believe that they will maintain their leading positions in the next 5 years.

1) 8 directions in IT

The IT sector is represented by a fairly large number of diverse areas.

Direction 1. Robotics

Inventors and investors spend a huge amount of time and money to achieve complete control over processes using remote control, for example, in industry.

Another popular area of ​​robotics is social. In this sense, robotics is designed to help people with disabilities, as well as to carry out a program for their rehabilitation.

Direction 2. Programs for 3D printers

In recent years, the 3D printer has become a breakthrough in the industry. That is why, at the moment, the creation of programs that will ensure the most efficient use of these technologies is of great relevance.

Direction 3. Health Gadgets

These are applications that can be installed on mobile devices and turn them into a personal doctor or trainer, as well as a nutritionist. Today, investments in such projects are among the most popular on crowdfunding sites.

We wrote about crowdinvesting, crowdfunding platforms and so on in a separate article.

Experts say that in the future such projects will become increasingly popular. Not a single person can do without applications developed with their help.

Direction 4. Cloud data storage

Professionals argue that in the coming years, investors will continue to be interested in cloud technologies, as well as the ability to store huge amounts of necessary information. The first place is now being put forward not so much for convenience and an intuitive interface, but for the security of the downloaded data.

Experts believe that whoever can develop the best program for secrecy of information will easily conquer the market for such technologies.

Direction 5. Big data (Big Data)

Projects related to the creation of programs intended for storage, as well as work with huge amounts of information, continue to remain popular.

The main consumers of such products were and remain retailers.

Direction 6. Distance learning

This direction of investment is considered one of the most promising. Programs that allow you to receive distance education are gaining immense popularity today.

The demand for such services is at a very high level, so the development of such programs will continue in the near future, which means that it will be profitable to invest in such projects.

Direction 7. Children's applications for development

Every child has mobile devices in the modern world. With this really interesting programs that allow you to teach them in game mode, very little. Similar projects are of great interest among investors.

Direction 8. Mobile consultations

Applications that make life easier for every person help him effectively manage cash flow, time, education and other vital issues. Today, such programs are very popular.

At the same time, there are a huge number of such applications on the market. Therefore, any startup will have to work hard to find a truly unique product.

However, there are options, you can create programs that will be as localized as possible, for example, suitable for residents of a particular city or metropolitan area.

Directions for investing in small business

2) 5 directions in small business

The most popular startups are not only in the field of IT, but also in small business. Below are the most relevant ones.

Direction 1. Waste recycling

Environmental trends are permeating every area of ​​life. Therefore, issues related to the processing of all kinds of waste are by far the most relevant for many people.

It is not difficult to find money for such startups. The necessary equipment and machinery can be taken both on credit and in leasing. we wrote in our previous article. In addition, such programs attract the interests of not only private investors, but also different state structures.

Direction 2. Computer training

All kinds of programs that allow people to learn how to program, create websites and animations, as well as edit videos, work with photos, are a very promising activity.

Direction 3. Outsourcing

Any aspiring entrepreneur understands the importance of outsourcing companies. Such firms allow you to save a significant amount of money and at the same time get a quality service.

That is why many experts believe that outsourcing is the direction of the future.

Direction 4. Content translators

In marketing today, the information provided is of great importance. A huge amount of content is taken from various foreign sites.

Therefore, startups believe that content translation companies are one of the promising areas of development.

Such activities will certainly be in high demand in the field of Internet marketing.

Direction 5. Project testing

Such a service allows you to check its effectiveness even before launching the project to the masses. This analysis makes it possible to release to the market only those products that are competitive. As a result, already at the start of the project, novice entrepreneurs can save a significant amount of investment.

Thus, there are several promising areas for investing in startups. Any investor should be guided by his knowledge and preferences, it is desirable to have an idea about the areas that are planned to be financed.

The main ways to invest in startup projects

6. Investing in business projects - 5 main ways to invest in startups 📝

When deciding to invest in startups, the investor must decide how he will do it.

There are several ways to invest in startups:

Method 1. Through crowdfunding platforms

This method is ideal for beginners. Through such platforms, you can distribute capital between several projects by investing a small amount in each of them. This option will help a novice investor gain initial knowledge and experience.

Making a profit from such investments is possible in several ways:

• in the form of royalties, which means interest on profits;
• with the so-called public lending, after a certain period of time, the invested funds are returned to the investor along with interest;
• when using equity crowdinvesting, the investor receives a share in the organization.

Investors using this method should understand that it is quite risky. There is a chance that the project will never be implemented.

In addition, Russian legislation does not define a clear attitude towards such investment. Any guarantees are provided only when purchasing shares of the company.

Method 2. Business angels

With this option, you need to regularly deposit funds in order to receive a share or discount on the purchase of shares when the next stage comes. Traditionally, it means the amount in the range from 50 (fifty) to 300 (three hundred) thousand dollars .

Often, support is provided to startups that do not have the budget for a product prototype. As a result, investment risks increase significantly.

Therefore, angels with significant experience, in order to diversify risks, invest in several projects at the same time.

For investment in the considered way business knowledge required in which funds are invested. This will allow you to make a competent assessment of the submitted projects.

Method 3. Investor clubs

At the same time, the investor transfers funds to the club, which, at his request, searches for a project. For this, the club charges the investor a commission. The investor saves a lot of personal time and at the same time he can control the whole process.

This way of investing in startups is suitable for beginners. Thanks to its use, a novice investor gets the opportunity to participate in large promising projects with little capital.

When participating in a club, there is also a risk of losing funds. Most often, it is associated with the bad faith of the club, which increases the number of operations carried out, significantly lowering the requirements for projects for participation.

About that, as well as what rules to follow when looking for investors, we wrote in a separate article.

Method 4. Investing in venture funds

This method is a passive investment. The investor only has to pay a commission, the rest of the work will be done by specialists.

disadvantage this way of investing is that it is poorly developed. It is difficult to find such companies that have been successful in several investment cycles.

Moreover, they often put investors in a strict framework: the minimum investment is usually at the level of 500 thousand dollars.

Method 5. Creation of own venture fund

Investors who have $10 million , as well as the opportunity to maintain a team of professionals and rent an office, they can try their hand at creating their own fund. Such companies most often invest only in well-prepared projects. However, most often no more than 30% of which are profitable.

With this type of investment the highest risks. However, if successful, the income will also be the largest.

There are a lot of difficulties in creating your own venture fund, first of all, they are associated with the poor development of this area in Russia.

Thus, there are several ways to invest in startups. The investor should choose the right one, focusing on experience, amount of capital, as well as an acceptable level of risk.

A step by step guide to investing in your business

7. How to start investing in your business - step by step guide 📋

Business development is influenced by a huge number of factors. First of all, psychology, as well as technology of entrepreneurship.

Properly organized activity has a direct impact on successful start and further business development. Statistics confirm that about 90% projects becomes unprofitable already in the first 2 (two) years of its existence.

However, the reason is not always high competition. Most often associated with the lack of a clear plan, as well as the concept of development.

Instructions for beginner businessmen will help to minimize risks, as well as increase the chances of a business turning a profit.

Step 1. Decide on a field of activity

Professionals say that finding a business area that is right for you can be difficult. This is real art.

Do not be afraid to start something unknown. It should be understood that most often for beginners and pioneers get the biggest profits.

Moreover, if you find a promising line of business in which no one has worked yet, you can not only earn large sums of money, but also gain fame all over the world. At the same time, age, as well as the level of knowledge, do not matter.

You can, of course, choose less risky ways. To do this, it is enough to apply existing business schemes. Do not be afraid of those areas of activity in which there is huge competition.

The main thing so that your project is in steady demand. For example, the existence of a huge number of beauty salons in a metropolis cannot cause losses for another one of them, since this service is in great demand.

The main task at the beginning of any business is to create such an offer that will be unique in the market. It should target a specific group of consumers, it is their needs that need to be met better than other companies.

Step 2. Choosing a tax system

Any business is associated with the payment of taxes. In Russia, the taxation system provides for the possibility for small businesses to use a simplified taxation scheme. This allows you to reduce the financial burden (Pro for IP, read in a special article).

However, it should be noted that it is much more profitable for low-profit companies to choose the main deduction scheme, since in this case the tax calculation is based on the profit received.

Step 3. Activity registration

Anyone starting a business can choose the legal form that suits him. In this case, one should focus on the amount of invested capital, as well as the planned scheme of doing business. Most often, representatives of companies related to small businesses can choose one of two forms of registration: LLC or IP.

Which option is better should be decided on a case-by-case basis. So when registering individual entrepreneurship, the procedure is much simpler. In addition, doing business as an individual entrepreneur requires a minimum of reporting to be submitted. For those who are just starting to run a business and are poorly versed in accounting, this option is most preferable. It will take about a week, while the fee is about 1000 rubles.

When the turnover of the company increases, it will be necessary to carry out the re-registration procedure. At the same time, an LLC is opened, which is already legal entity, which means it has the appropriate rights. This significantly complicates the reporting provided, and also increases the responsibility. You will have to pay a fee of about 5,000 rubles.

Step 4. Opening a current account

Any investment activity in a business involves cash flow. Its directions may be different: replenishment of assets, payment of bills, receipt of income. Therefore, an individual entrepreneur or LLC needs to open a bank account.

Some novice businessmen decide to use an account opened for an individual. However, it is wrong to confuse business-related money and personal finance.

When opening an account, it is enough to choose the appropriate bank. Bank employees will help with the rest. Some credit organizations offer to open a current account using the Internet (online). At the same time, some banks can bring ready-made documents to a convenient address.

Step 5. Getting Started

As soon as the idea is developed, and the previous steps are completed, you can begin to implement the project. To do this, it is desirable to prepare a detailed business plan. Shouldn't be ignored this stage of creating a business, otherwise there is a great risk of unpredictable developments. for small businesses, we wrote in a separate article.

A documented development strategy will help minimize risks. In the event of unexpected turns of events or when clashes with competing firms begin, it is the business plan that will help find a way out of a difficult situation.

When the plan is drawn up, you can proceed directly to the business. This will require setting relationships with suppliers, consumers, customers and buyers.

It is important to be prepared for the fact that the formation of a business is gradual process. Therefore, it makes no sense to worry if at the very beginning of the business things do not go uphill. At the beginning of activity it is always difficult. Gradually, experience will come and it will be easier to navigate the business.

Novice entrepreneurs should not be careless about the instructions presented. Following the steps and keeping them in order helps start a business more efficiently .

What risks can an investor face when investing in a business

8. The main risks when investing in a business and how to reduce them 📛

There are two parties involved in any investment process − directly investor and Business owner.

Investor's goal- choose a business, investments in which will help not only not to lose capital, but also to increase it. It turns out that the risk of investing is important for an investor.

Purpose of the owner of the company somewhat different is to attract money into the business and not lose it. It is this type of risk that is important for finding investors.

It turns out that both participants in the investment process have a common task - to minimize risks.

The most important risks for investors include the following groups:

• organizational;
• legal;
• economic;
• financial.

You can manage risk if the relationship in the business investment process fix in the investment agreement. On the Internet you can find a large number of examples of such agreements. However, in reality, there are often situations that do not fit into traditional patterns.

Therefore, when investing in a business, it is best to seek the help of professional lawyers. This is especially true for direct investment agreements.

In this case, if the investment project fails, the investor will have the opportunity to get back at least part of the invested funds. And with the success of the event, he will receive all the profits due to him without any problems.

Before investing in any project, the investor should independently analyze it, or attract specialists for this. It is important to properly assess How effective is the project?

Equally important is the verification of the background information, as well as the conditions for the existence of the project and the likelihood of its success. In addition, it should be estimated how long payback will come .

If a business owner provides an investor with a business plan, it is important to carefully review all of its sections. Particularly careful you have to be with those business plans that promise too high a level of income. Often there are errors in the calculations, moreover, in case of a desire to cheat, there may be data falsification.

Business investments always include 2 (two) components- this is cash owned by the investor, and capital directly from the project owner. It is important at the initial stage to immediately decide whether there is enough money to implement the plan.

If the investor understands that the business plan involves the participation of the owner himself, it is important to find out if he has enough money or if there are options where to get it. In this case, the investor insures himself from the need for additional financial contributions.

Thus, before investing in business projects, you should carefully study the scope of the business. If the investor does not understand in this subject or he does not have specialists who have sufficient knowledge in the presented business area, it is not worth investing in the project.

It is best to invest in a business that you understand or that is simple enough for investors to understand. Finding a businessman who needs money is not a problem. For the investor, the efficiency of the project comes first.

It is important to invest in an enterprise that is well organized and will bring profit in the future. Otherwise, the money may not be returned.

Also, professionals recommend investors to go to production either in company office in which it is planned to invest. Often this helps investors make the right decision about the possibility of financing the project, as it helps to visually assess the organization of business in the company and in production.

9. Frequently Asked Questions (FAQ) 📢

Investing in a business is a rather complicated process, so it inevitably entails a large number of questions. Let's try to answer the most frequently asked of them.

Question 1. I want to invest money in promising young start-up projects. How can I do that?

In the article itself, we have already answered this question, so we will answer it more briefly and meaningfully.

There are several ways to invest in startups:

1. Invest through crowdfunding platforms (starttrack.com , mypio.com );
2. Retrain as a business angel. That is, investing money in various business projects at an early stage, for a share in a company or convertible debt (when an investor purchases shares at a “discount” in the future). The size of angel investments is usually from $45-50 thousand to $300-350 thousand.
3. Invest through investor clubs. In this case, investors give the club their parameters and characteristics (preferences) for the investment object, the club finds projects according to the required parameters and prepares a deal, where it receives a commission for it. The club has full control over the transaction. ( altaclub.vc , common.skolkovo.ru/ru/espace/investors , smarthub.ru )
4. Transfer funds to the management of a venture fund. Thanks to the professional and competent selection of promising projects, the risks of the investor are significantly reduced. The venture fund itself works with startup projects, and the investor pays a commission for money management and receives dividends.
5. Create your own venture fund. To create a venture fund, you need to create a company, rent an office (commercial premises), maintain a professional team and have investment capital of at least 10 million dollars. Typically, such funds invest in more mature and developed projects than the same business angels. As a rule, the transaction amount is in the range from $1 million to $5 million . (moreover, about 70 percent of all invested projects, as a rule, do not bring profit).

In a separate article, we also talked about the methods in more detail.

Question 2. Where to look for startups?

If you decide to find a startup project on your own and invest money there, we recommend using our recommendations.

1. Register in startup databases as an investor

In these databases, you can filter startup projects by niche (choose tourism, IT, etc.). As a rule, the description of the project is well structured in the databases, since all projects undergo minimal moderation of the resource. The advantage of such a search is a quick and visual comparison of startups.

There are a lot of such sites in the world, but we recommend:

1. Angel List- the world's main service for finding investments and startups (it is the founder of the startup field), on the basis of which a large number of clones have been started. The service database contains more than 1600 startups and 380 investors from the Russian Federation (and their number is constantly increasing)
2. Starttrack.ru is a crowdinvesting platform that has the functions of a startup base. The platform allows you to enter into syndicated transactions. Transactions are also carried out at closed meetings of private investors. As a rule, investors who are ready to invest in the project from 300 thousand rubles are invited to such events. There are about 800 investors in the database.
3. Spark- a service for finding an investor, but recently new interesting and technological projects have been uploaded there, where the creators share their experience and upload projects for investment. There are about 4,500 projects in the database, where about 1,500 need investments.

2. View information through open databases about startups

Here you can see projects that have already attracted investments.

1. Crunchbase.com- one of the largest databases on the venture capital market, which contains more than 700 thousand profiles of investors and startups.
2. Rb.ru/deals/— Russian platform with the chronology of transactions, profiles of private investors and startups, funds, etc.

3. Follow the finals of the competitions

During the competition, each project withstands tough competition and jury evaluation. As a result, only really high-quality projects remain. which deserve the attention of investors.

4. Keep track of accelerator releases

Also keep an eye on accelerator releases. Accelerator is a company where the activity is to help other companies (residents of the accelerator). The help of the accelerator is in the development, promotion, recognition of the company (brand), etc.

An accelerator is a program that quickly allows you to develop a project from the moment of its inception to the moment when they become of interest to the investor. The projects that have reached the end are the strongest, because they managed to overcome several stages of selection.

Accelerators earn money by reselling the shares of the company that were received (buyed out) in the past.

Accelerators include the following − IIDF Accelerator, iDealMachine, MetaBeta and others.

Investors should be aware that the success of investments is determined, among other things, by knowledge. Even membership in a club is not completely free from risks.

Question 3. How can an investor check a startup on their own?

To get an objective opinion about the proposed investment object, you need to take a number of actions. They are united by the concept DUE diligence. Such actions are important to carry out before making any investments, buying a company or merging it with another company.

due diligence effective in the process of deciding on any cooperation with any company.

Despite the importance of the procedure in question, many investors ignore it. However, due diligence helps investors retain a large portion of their capital, so let's look at the actions that should be taken.

1) Product

The investor must himself try the product or ask a friend who falls into the target audience to do it.

No less important has an attempt to sell the product to someone you know. As a result of such actions, for sure, a huge number of unnecessary things will be eliminated.

2) Team

It is important to carefully study the main actors (founders) of the project. To do this, you can use the social network Facebook, LinkedIn, etc. Here you should evaluate the profiles of people, find them in other networks and try to understand what unites them.

So you can understand how the investor is ready to cooperate with such people. Another smart move – invite someone for an interview. During it, it is quite possible to pull out a huge amount of information about the company with which you plan to interact.

3) Investor

It makes no sense to ask the opinions of other investors about any project. It is unlikely that you will be able to get a reliable answer. It’s better to do otherwise: call an investor who is not related to you in any way and offer become a co-investor. Most likely, in response, you will be able to hear a truthful opinion.

Thus, it is quite possible to evaluate a project for investment on your own. The main thing is to follow certain rules.

Question 4. What are the features and procedure for drawing up a business investment agreement (investment agreement)?

Conclusion of an investment agreement is an important step in investing in any business. It is an agreement concluded between the parties to the transaction, which are the investor and the owner of the business.

The purpose of such an agreement is regulation of the relationship between the parties to the transaction, first of all, about how the costs and revenues will be shared during the implementation of the project.

For each of the parties to the agreement in the contract in without fail planned income and expenses.

In accordance with the agreement under consideration, the parties to the transaction undertake to make joint efforts to implement the investment plan.

It is important to note that the main investor's task- to invest and business owner– use them exclusively for their intended purpose in accordance with the business plan of the project.

An investor may have a different status: legal or individual. He invests in a specific business project. The purpose of investing is primarily to generate income in some form. In this case, the investor assumes certain risks. They are associated with the possibility lose invested money , both in full and in part.

The task of the business owner is to raise funds. At the same time, the purpose of such actions is to achieve a certain result in the course of investment activities. In the financial world, such activities are understood as the actions of investors, consisting of a practical and analytical component, which are aimed at achieving the goal set in the plan.

Until the signing investment agreement it is important to take a number of steps:

1. Negotiations must be carried out without fail. In the course of their implementation, the investor and the business owner must determine mutual obligations, as well as the procedure for distributing income and expenses. The result of negotiations is the conclusion of an agreement.
2. The project owner must draw up a business plan designed for the purposes of the investor. Without fail, this document should consider: an analysis of the company's most important competitors, the product market as a whole, as well as the niche occupied by the company. Financial calculations, including the estimated risk, are also important. You should also describe what is valuable, relevant to the proposal and what is its novelty. At the end of the business plan, the prospects for the project are given, as well as possible scenarios for the development of events.

An investment agreement is legally binding only if if it is in writing . This should be done only after negotiations have been held and a business plan has been drawn up.

If on any issues the parties do not come to a mutual decision, they must draw up a protocol of disagreements. Subsequently, this document is of great importance, especially at the stage of signing agreements. At this point, it is considered an integral part of the agreement.

You can find a lot of investment agreement templates on the Internet. They are somewhat different from each other.

Standard business investment agreement - you can download the investment agreement at the link below

(investment agreement) (doc., 15.2 kb.)

However, there are clauses that must be present in every contract:

• a description of the legal status of each party;
• listing the most important terms used in the agreement with the mandatory definition of all concepts;
• a specific reference to the subject of the agreement - which investment project it is with the name and description of the project, its main purpose, it should also indicate who is the developer of the project;
• for how long the contract is concluded;
• how the contract is settled. If the parties have reached an agreement on the right of the investor not only to the main, but also to additional remuneration, this should be stated in the contract;
• the rights acquired by the parties;
• what obligations do the parties have when signing the contract;
• how the investor will receive the result of investment activity;
• what are the property rights of each party after the results of investment activities are received;
• what responsibility during the implementation of the project each party bears;
• how the contract can be terminated;
• how changes are made to the concluded investment agreement;
• reference to force majeure circumstances;
• how and where disputes between the parties to the agreement are resolved.

The following must be attached to the investment agreement:

1. an act on the distribution of property rights between the parties;
2. existing protocol of disagreements;
3. a protocol for reconciling the developed disagreements.

It is usually difficult for an investor and a business owner to draw up an agreement that satisfies both parties and takes into account their personal conditions. Therefore, the best solution is to take the help of a professional lawyer.

10. Conclusion + related video 🎥

We have considered the main issues and points regarding investing in a business. If you read the article to the end, you probably learned something new about investing in a business. Now you can put the acquired knowledge into practice.

And a video about the features and nuances of investing in business from Oleg Ivanov (“Business Environment”):

The site magazine team wishes you good luck and success in investing in business. If you have any comments or questions about the topic, then ask them in the comments below. We are waiting for you again on the pages of our site.

In the modern world, there are more and more interesting business ideas that need to be implemented. But for the promotion of any project, money is needed, which the author of the idea does not always have. Therefore, the question of finding investments for starting a business is relevant. However, entrepreneurs and companies starting from scratch run the risk of facing strong competitors in their chosen niche. And in order to realize the idea and find the necessary funds for this, you need to know all the tricks for attracting investors.

We will tell you how to make your project attractive to investors and what you need to do for this. The road will be mastered by the walking one, and the business - by the one who is ready for the new.

• 1 Where to look for investors
  • 1.1 Classic ways to attract investment
• 2 Attracting investments through the mainstream
• 3 Platforms for finding investors
• 4 How to proceed. Basic rules for attracting investors
• 5 How to make the project attractive: what the investor will pay attention to
• 6 How to prepare for communication with an investor: from a pitch to signing a contract
• 7 How to prepare a presentation: 5 chips for investors

Where to look for investors

Opportunities for finding investors are much more than it might seem at first glance. And you can find money by resorting to both long-existing methods of investing, and modern ones that have appeared with the advent of the Internet.

Classic ways to attract investment

You can get money for business through investment funds, small business assistance funds. This is quite a difficult task. In addition to the fact that a novice entrepreneur must find serious reasons for receiving investments, he must invest part of the funds himself, but not everyone has the opportunity to do this.

You can ask for help at venture funds However, it must be taken into account that they provide funds for the development of projects that have prospects. First of all - in the field of innovations and IT-technologies.

Another option is a special platform for investing in business projects, a business incubator. But in order to get money, you need to win the competition and pass an interview.

Successful investors can also become potential investors businessmen who would like to have passive income. Finding investors and making them partners is the most acceptable and easiest way. And for this you need to be able to present your project well, to prove its viability and relevance.

Attracting investments through the mainstream

One of the most popular ways to attract investment is crowdfunding, which is the collection of funds for a business from ordinary people. There are crowdfunding sites on the Internet designed so that you can leave offers to raise funds for a project or invest your money in a project. But in order to resort to this method, you either need to be a famous person or be able to advertise your idea very well, which, unfortunately, is not done on crowdfunding sites.

You can also try attract investments through cryptocurrencies and electronic payment systems . It should be noted that some cryptocurrencies popular today, for example, Ethereum, were created with the money of users.

Platforms for finding investors

If you do not know where to look for investors, then we offer you several large platforms for finding them.

business-platform.com. Federal business platform. In addition to projects and sales offers ready business, here you can find the database of investors. The main task of the platform is to connect investors and authors of business projects online.

beboss.ru. The resource provides an opportunity to search for investors for any industry, as well as a catalog of franchises, business plans and business ideas.

napartner.ru. The platform offers various services for startups and investors, such as transaction support. Beginning businessmen will need to describe the nuances of their project so that investors receive as much information as possible.

investclub.ru The resource provides ample opportunities for finding investments and investors.

rusinvestproject.ru. A platform for searching for investors both in Russia and in the CIS countries.

How to act. Basic rules for attracting investors

There are many people who want to receive investments and the competition is quite high, so before looking for an investor, you need to learn a few rules.

The more information you provide to investors, the more you will be trusted.

If you know how much you can earn, how your project will develop, you can safely go to a conversation with an investor. Calculate exactly how much money you need and for what.

An example is the startup Talkdesk. Its authors proposed the development of cloud technologies to be used in call centers. Before meeting with a representative of the Silicon Valley venture capital fund, from which the project team subsequently received $12,000,000, it already had investments from other investors in the amount of $4,000,000 and received $1,000,000 in profit. Investors were captivated by the team's ability to save money and devote themselves entirely to work. They made all conclusions on the basis of the information provided about the project.

The more you know about an investor, the more opportunities you have to interest him.

What is your preferred communication style? How does he do business? How quickly does he make decisions? Every little thing can be important.

An example is receiving investments for the Glowforge project. Before applying for investments, the author of the project looked through the blogs of the fund's partners. Studying them, he concluded that when making a presentation, one should be based not on numbers, but on the product. In total, the project raised $9,000,000 for the production of laser 3-D printers from venture capital funds Foundry Group and True Ventures in 2015.

The project also set a crowdfunding record as it was able to raise another $28,000,000 on the platforms. That is, the author of the project, Dan Shapiro, successfully used the second rule, but most importantly, the third rule.

The more confident you are in your success, the more others will believe in it.

Investors prefer competent and persistent people who know what they want and who can justify their plans. Prove that you are capable of doing what you propose. Refuse the words “I want” and “I wish”, say “I do” and “I act”. Focus on goals. Properly set goals will certainly lead to success.

How to make a project attractive: what an investor will pay attention to

According to statistics, only one out of ten projects receives investments. What needs to be done to make your project interesting for investors?

1. You and your team

First of all, any investor will be interested in what kind of people he will have to work with. Interesting as the personal qualities of the author of the project, and his motivation, willingness to go to the end. You must prove that you can move forward despite the difficulties. It is important how you achieve your goal, as any investor values ​​his time and money.

1. Correct calculations

Unfortunately, 95% of start-up entrepreneurs looking for investors have little idea of ​​what income they can expect. The figures presented by them at the presentation sometimes do not correspond to reality. Constantly growing sales and millions of profits offered by project authors often have nothing to do with the real state of affairs. Look for how to optimize costs, indicate what exactly you want to receive investments.

1. Project Potential

One of the most important moments in communication with an investor is to determine the potential of the project. The investor must know when the project will generate income, how you will identify potential customers, and finally, when the project will fully pay off. Preferably within a year, maximum three years.

To identify potential customers, it’s a good idea to run a crowdfunding campaign. In the event that users are interested in your project, you will have a chance to arouse interest among investors.

How to prepare for communication with an investor: from a pitch to signing an agreement

There comes a time when the investor believes that he should choose your project. On average, it takes businessmen 3-9 months from meeting an investor to concluding an agreement. You may have to prepare more than one version of the business plan and answer many questions that you are not quite ready for. Therefore, carefully prepare not only for the presentation, but even for a short meeting and a telephone conversation. Each stage of communication requires its own preparation.

Stage 1. Acquaintance

It can be both internal and external. The main thing here is to interest the investor in your project. To do this, you can use the following methods.

elevator pitch or a presentation in an elevator. The short presentation is so named because businessmen and startups “caught” potential investors in elevators and presented their business idea to them in 30 seconds. Your mini-presentation must include:

• the problem you are solving;
• Product Description;
• monetization method.

The main thing is to attract attention, for which you can use Interesting Facts or numbers. For example, SpaceX's presentation consisted of only three proposals: launch costs that have not been reduced in decades, the possibility of reducing them by 90 percent, and an impressive amount that can be earned.

Elevator pitch can be used in large forums and business competitions.

Correspondence. It is quite possible to establish a connection by correspondence by e-mail. For individual calls, this method works best. The letter, in addition to the appeal, must include:

• a description of the product or service;
• description of consumers;
• business model;
• basis for investment.

Stage 2. Business meeting

Presentation. If a potential investor is interested in the elevator presentation or your letter, he will invite you to a personal meeting, for which you also need to prepare. When going to a meeting, you need to decide what you want from it specifically. If you get money, then you need to say so. Such a call to action is quite applicable and works.

Now about the presentation itself. It should be short and bright. It's good to follow the 10/20/30 rule. Try not to dwell on the details and keep within the 20-minute presentation, which consists of 10 slides and typed in 30 font.

Appearance. The fate of your project will depend not only on a good presentation, but also on your behavior and appearance. That's why:

• don't be late;
• come in a business suit;
• follow the rules of etiquette.

Your ability to keep yourself confident, your energy and charisma are very important.

Stage 3. Obtaining funding

Finance, finance and more finance. For an investor, the most important thing is making money. This must be remembered first of all. Therefore, even if your project is supposed to “save the world”, but does not have a good business plan and financial plan, it will not interest a potential investor. A financial model is needed, which can be corrected by the investor himself. Good to have:

• marketing research results;
• letters from suppliers.

It is better to prepare three options at once: optimistic, pessimistic and basic. But, in any case, the model must be carefully verified. Only in this situation can we hope for a deal. It is important to show that you know the market well, to convince of the expediency of introducing your product. The investor must believe that by investing money in your idea, he will be able not only to quickly recoup the investment, but also to make good money.

How to prepare a presentation: 5 chips for investors

The presentation is very important, on which the receipt of investments will largely depend. Many entrepreneurs, when preparing for a presentation, do not fully understand the interests of investors and do not know how to properly present their project. What points should the presentation contain?

1. Problem Definition. If it is, then it must be confirmed. Confirmation of demand should be determined by real numbers.
2. Solution. Your decision cannot be the only correct one. But this is your decision, and you need to convince the investor that it works, that people are ready to buy the product. It is best to come to investors already with certain results. To do this, you can take the following steps:

• do product testing;
• notify of changes to the project;
• present the available results.

1. Search for opportunities to implement the product. Willingness to buy does not mean that the product will sell well. Even if a person buys a service or product once, there is no certainty that he will contact you the next time. Therefore, you need to consider the profit and loss per customer, the so-called unit economy, as well as ways to attract and retain customers.
2. Searching for a market and defining a strategy for entering it. We need to look for those markets that are growing, not disappearing, such as the market for cell phone repair.

If the presentation shows how your income will grow in 3-5 years, then your financial model will arouse interest among investors.

1. Determining the amount of investment. At the last stage, it is imperative to tell the investor what you need money for and how much you want, as well as how much you are ready to invest yourself.

The right choice of an investor, serious preparation for a conversation with him, as well as a good presentation of the project will help you get a chance to invest in your project.

Andrey Merkulov

Investor, founder of the Investment Territory project
The owner of a number of assets - a profitable house, profitable apartments, profitable websites
Entrepreneur, expert in traffic, business replication and business systems

It is difficult for a novice entrepreneur to organize his own business, since even a small business requires significant financial injections to start. Where to get this money? The fastest and most reasonable way is to attract an investor - a person who will contribute his capital in exchange for a part of the profits or shares. An investor can become a partner of the company, often an assistant in development, because he is no less interested in making the business profitable than the owner.

Where can a businessman get money to develop his business?

Until the business begins to generate income, not a single day will pass - all this time the entrepreneur spends money on rent, paperwork, payment wages, purchase of equipment, consumables, products and for other purposes. You can get start-up capital from several sources:

1. Personal savings - long, but most reliable way, at which you need to set aside part of the income every month;
2. A bank loan - they are reluctant to provide money to open their own business, requiring collateral, so more often entrepreneurs take consumer loans, but the amount is limited here;
3. Borrowing money from relatives is a good way if you have a wealthy loved one who is ready to borrow a large amount;
4. Search for an investor - a private individual, a company, an association of people, it can be business angels - specialists in investing in start-up entrepreneurs;
5. Finding a partner - in this case, the business will have to be divided in proportion to the amount of injections, it is better to look for a financially literate person, and not a beginner;
6. Starting a related business - for example, if you want to open a car service, you can start with a tire fitting, and when profit and experience appear, expand your business;
7. Receiving a subsidy from the state - provided by the employment center, the district administration, the business support department, but the amount of injections is small, reporting is required;
8. Crowdfunding is the collection of funds through a special platform from ordinary people, but for this you need to offer an unusual business idea, interest the audience, and conduct an advertising campaign.

Experts and experienced businessmen are sure: borrowing money or resorting to a loan is not the best idea for an entrepreneur. It is better to use your savings or attract investors by concluding a cooperation agreement with them.

Step-by-step instructions on how to attract an investor?

New entrepreneurs don't understand how to find an investor for a small business from scratch? To raise capital for the development of your business, you need to draw up a well-thought-out business plan, choose a convenient form of cooperation, find professionals, negotiate and conclude a cooperation agreement.

How to prepare a business project?

A business plan is a visiting card of an entrepreneur, it is this project that potential investors will study, assessing the attractiveness of financial injections. Keep in mind that the investor is not interested in how original the idea is, what prospects it promises you personally, he wants to know how much profit he can get. The business project must contain:

• a brief and detailed description of the idea, a plan for its implementation;
• calculation of starting capital;
• analysis of the real benefit for the investor - also with calculations and reasonable conclusions;
• the payback period during which the income will be received;
• investment prospects.

If a business plan is drawn up by a novice, he can make typical mistakes due to inexperience, which will scare off investors, sometimes it is better to invite specialists to prepare documents or ask for help from familiar businessmen.

How to choose the right form of cooperation?

The form of cooperation is chosen by the businessman together with the investor, but first it is worth calculating the benefits from each model, determining the most effective way of interaction. An investor can earn income in several ways:

• percentage of the deposited amount, as in lending;
• part of the profit from the implementation of the idea;
• share in the business - re-registration of property rights will be required;
• finished products or services - relevant for investors in a related industry, for example, if a businessman opens a company for the delivery of motor oils, and the investor has his own auto parts store.

In the process of negotiations, the investor may insist on a different scheme of cooperation, it is often more profitable for an entrepreneur to make concessions than to lose the opportunity to receive funds.

How to seek help from experienced businessmen?

It is difficult to develop your own business and look for investors without experience. It is better to ask for help from other businessmen who will provide assistance if further cooperation is possible between you on favorable conditions. Who to contact? For example:

• if you produce food - to the owners of stores;
• if you plan to carry out transportation - to businessmen who rent cars or need regular delivery of goods;
• want to open a flower kiosk - to flower suppliers;
• are going to sell farm products - to the owners of household plots.

Experienced businessmen will advise on the presence of pitfalls, features of the chosen industry, help to study this issue more closely and prepare a detailed business project.

How to negotiate?

The first meeting with an investor is always a presentation of the project, presentation of a business plan and coverage of the main issues that may arise. You need to carefully prepare for the meeting so that the investor understands several points:

• you are financially literate;
• excellent knowledge of the topic;
• offer a fresh and interesting idea;
• the investor will be able to profitably invest;
• there is no doubt about the honesty of the businessman and the reality of the project;
• what are the risks in this industry.

During negotiations, the focus should not be on how new the business will be, but on outlining the benefits of investing.

How to conclude a cooperation agreement with an investor?

When an investor is found, the project is presented, consent is received, it remains only to prepare an agreement on capital investment. In this matter, it is better to involve a lawyer and check that the document indicates:

• terms of investment;
• payment method;
• the amount that the investor contributes;
• rights and obligations of the parties;
• procedure for violations.

The money received from the investor should be used only for business development - this is directly indicated in the contract.

How to get investors interested in a business plan?

• collect information about the investor, eliminating possible misunderstandings;
• carefully calculate the amount of investment that is needed;
• do not delay the implementation of the project;
• outline specific goals;
• analyze the market, competitors, the situation in the industry, so that the investor understands that you have worked out this topic well;
• do not hide important information and facts from the investor.

Of course, a businessman wants to present his project in the most favorable light, so the data is often embellished, and the calculations turn out to be overly optimistic. An experienced investor will definitely ask about the fate of the project in case of negative developments, you must be prepared for this question.

Finding an investor is not so easy, because the number of business projects created daily is only growing, and the level of competition for attracted funds is increasing. To find an investor, you need to competently approach the search, following the advice:

1. Start the search as early as possible, as this process can take several months. You need to look for an investor already when you have calculated the business prospects, assessed the benefits from the implementation of the idea. The main mistake of newcomers: they use their funds for development, and when the capital runs out, the business goes into decline, they start looking for injections from outside, but such a project for investors most often turns out to be uninteresting;
2. Reach out to someone who can really help. If the investor is large, it is not worth going to him, offering to invest in a small business, but if it is a small company, then it simply will not have enough capital to invest;
3. Name the specific amount that you need - you should not indicate a range, for example, from 500 to 900 thousand rubles, the number should be accurate, and the spread should be minimal.

An experienced investor knows that it is better to invest in projects with a balanced income and risk. The goals of the entrepreneur must be specific, and the idea itself must be relevant, allowing you to make a profit in the future.

How to find an investor - an overview of specialized sites

In the era of the development of the Internet, the search for investors cannot be imagined without the use of remote technologies. For this purpose, there are special platforms where businessmen can “meet” and negotiate with potential investors. In Russia, such platforms are popular as:

• Boomstarter is a crowdfunding platform focused on raising funds for the implementation of creative projects;
• Planeta.ru - allows you to find an investor and implement socially significant, creative ideas, about 800 thousand people are registered on the portal;
• Nachinanie.ru is a platform for collective financing of projects - religious, educational, socially significant;
• Eastwestgroup - here the investor search services are paid, but the business project is evaluated free of charge, the company has been professionally engaged in attracting investments for over 10 years;
• Start2Up is a bulletin board for investors and start-up entrepreneurs, projects in the field of the Internet, education, art, and culture are popular.

Finding an investor to develop your business is not an easy task, but a feasible task with a competent approach. The main thing is to offer a relevant idea, draw up a well-thought-out business plan, accurately calculate the benefits from investments. A potential investor will be interested in an honest project with low risks, sufficient income in the implementation process, and also with a financially literate owner.

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 . 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 hardly 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 intended use funds, even part of the invested money 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 focus on the above step by step instructions. 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 common 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 , science , as well as IT technologies .

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

Details about venture investments, in particular, which ones exist and what they do, we wrote 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 obtain 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;
• real estate.

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, the entrepreneur will not become financially dependent on other people, he will be able to run the 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 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 Internet sites 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 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.ru- a resource that allows you to find enough large investors.
3. Napartner.ru- 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 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 looking 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.

There are many different agencies successfully operating in the investment market that 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 First 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.