Real Estate Sales And Management
You don’t need any specific degree to get into real estate. You can come from any background and hit the books to earn a real estate license in your state. Some may require a specialized broker’s license or property manager’s license to operate your own real estate office.
But once you are established, it is another business that requires little more than a computer and your time. Much of real estate is building relationships, creating a regular funnel of new clients, and marketing properties for the fastest possible sale.
Typical real estate commissions are 6% of the sale price, split between the buyer’s and seller’s agents. Selling a typical $250,000 home yields a $7,500 payday for each agent. Put together just two of those per month, and you’ll quickly hit a six-figure income.
If you’re unsure of how or where to start, Roofstock is an excellent option for first-time real estate investors. This fintech startup is the perfect platform for beginners, offering low fees, and a wide range of homes to buy. You can also buy houses with tenants and collect rental income straight away. As a bonus, you don’t need to be an accredited investor to open an account.
Form An Advisory Council
Maybe instead of a cofounder, you seek out professionals in your desired industry who would be willing to form an advisory council of sorts. This can be as few as 3 people who are willing to communicate with you and share their wisdom to help the next great thing come about in their industry. Their presence in your management structure could be the very thing that lets an investor know you are credible and investment-ready.
When forming an advisory council, consider what objections potential investors might raise and then find experts who will address those concerns. For instance, lets say you want to fill a giant warehouse with trampolines and charge kids for entry. Perhaps a safety expert and a child development expert would make good members for your advisory council. Or maybe you want to create ergonomic office furniture. Approaching medical professionals or physical therapists for membership on your council would be a very wise step.
Ask Family And Friends
The first people many startup entrepreneurs consider when they need investors are often their own friends and family. It’s also usually more cost-effective, as people who are close to you are more likely to offer you the money in more advantageous conditions than a professional investor or a bank. You need to decide whether you want to ask them for a loan or an actual investment, which usually means you giving them a proportion of future profits.
Although convincing friends or family to finance your business may seem a straightforward and easy way to secure funds, it’s usually a good idea to treat them like regular investors and properly explain your plans and the risks associated with them. Having professional connections with personal acquaintances can have unwanted consequences unless you make sure you properly communicate with them every step of the way.
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Industry Conferences And Summits
If you donât have the network you wantâor needâthen grow it. Samantha Urban, CEO of San Diego-based service company Urban Translations, recommends events, which she says draw in hundreds of investors and CEOs. Sheâs secured funding through summits herself after just two meetings. Urban adds this advice on how to find investors:
âThe key build and nurture these investor relationships. Find out what type of companies they invest in , what stage, how much revenue they want to see, how long they take to do due diligence, and any other factors that make them get excited over a potential deal.â
She also stresses that youâre building a relationship, slow and steady. âNever assume that you will be invested in right away,â Urban says.
How To Convince Investors To Invest In Your Business
Are you finding it difficult to get investors attention on your idea? If YES, here are 15 tips on how to convince investors to invest in your business guaranteed. Finding and convincing investors to fund your project is often very difficult for entrepreneurs because most of them are not trained for this activity. Quite a lot of business owners put all their focus on the product or service they offer, but they have very little knowledge of how to fund their business.
As a startup business, you need to bring an idea that is new and fresh to the table in order to get you noticed in the entrepreneurial world. However, it takes more than just a good idea to get investors to whip out their wallets and fund your business. In this tough economy, you may think that it is close to impossible to find a reasonable source of capital to start your business, but the truth still remains that there are millions of people who are willing to invest their money in other peoples businesses.
However, these investors are not giving their money to charity, they intend to make a decent profit from their investments. With the current interest rate of CDs and treasury notes having gotten so low, investors are willing to consider other high yielding investment sources.
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How To Attract Investors For Your New Business
Most entrepreneurs start out by bootstrapping, which is financing their endeavors through any available personal funds. Bootstrapping involves draining your savings account, taking out a home equity line of credit, or maxing out your credit cards. Unfortunately, your personal funds only go so far, and you find yourself having to look for outside investments to keep your business idea going.
Investors tend to like companies with proven track records. Since you’re just starting out, attracting investors will be a little tricky considering you don’t have an existing track record. A good place to start is to research potential investors and find those whose beliefs, missions, and interests align with yours. Finding a like-minded investor drastically increases your chances of success.
You can also attract investors by having a strong social media presence. Build up your web presence on multiple social media platforms, as well as your website.
Those just starting out should seek out lesser-known investors who frequently support small businesses. Only when your company is well established should you chase those bigger investors.
Oftentimes, your first pitch doesn’t yield the results you were hoping for, but don’t give up hope. Keep working and continue trying to attract investors. Learn from your failed pitches, and focus on the positive aspects of the pitch to use the next time around.
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Through Your Industry Friends
No matter what your business goals are, networking is essential. Making friends within your industryeven the competitionis well worth the time and effort. Networking allows you to learn about potential investors, what they are looking for, and how to go about approaching them.
Industry friends can also give you solid advice on what to do and not to do, as well as expand your network.
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Are You A Startup Or An Ongoing Business
The outlook for funding depends a great deal on the specifics of the business.
For example, many ongoing businesses have access to standard business loans from a traditional bank that would not be available to startups. Also, high-tech high-growth startups have access to investment funding that would not be available to stable, established businesses that show only slow growth.
Ways For Entrepreneurs To Find Investors
Yahoo Small Business
3 min read · 11 months ago
Every business idea needs a solid financial footing to get launched. After exhausting the goodwill of every family member and your friends, entrepreneurs have to try new ways to find investors to land the funding they need. This article shares several strategies to help aspiring businesses find investors and fundraise.
Your business needs capital to grow. Typically, the first investors are people who know you well already. But, your business idea could keep growing even after youve tapped your contact list. Really, thats what youre hoping for, right? So, then you need to try new avenues to find investors, including:
- Networking
- Angel investors
- Venture capitalists
When it comes to finding your investors, it helps to start small and work bigger. These strategies reflect that idea.
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Equity Vs Convertible Note Vs Safe Note
Youâre likely already familiar with the notion that youâll probably have to give up equity as you search for how to find investors. But the idea of a convertible note may be on the table, too, which is a bit more nuanced.
A convertible note is a type of short-term debt common in early-stage business financing. With a convertible note, youâll receive funding, but instead of paying back interest with your principal, your investor will get equity for the outstanding loan balance based on a future business valuation. This is a good setup for many new businesses in angel and seed stages who need cash, but arenât necessarily in a place where theyâre ready to put a valuation on the company .
An alternative to the convertible note is the SAFE note, which stands for âsimple agreement for future equity.â Unlike the convertible note, this isnât debt, but it does convert into equity. Itâs generally shorter.
Get Clear On Your Ask
If you expect to find sincere interest in your idea, be prepared to communicate exactly what your request entails. Are you asking the person to be an advisory council member? A cofounder? A business partner? What will these roles mean for the person? Will there be daily emails? Monthly meetings? Phone calls? Will the person be expected to reach out to their circle of influence and bring those people into the mix? Dont assume that your expectations are the same as others who may have approached this person for help. Speak clearly, communicate succinctly what you are asking the person to do with regard to you and your project. Heres an example:
Thanks so much for taking the time to talk to me. I know your time is valuable. You seem interested in what Im working on, which makes me wonder if youd consider being on an advisory council for this? Itd probably be a couple of emails per week and a phone call every month or so. I would bring you questions or ideas as I develop the concept further and expect you to give feedback on those from your place of experience and expertise.
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How To Find Investors For A Small Business
This article was co-authored by Helena Ronis. Helena Ronis is Co-founder and CEO of AllFactors, a unified web analytics software to drive company’s marketing and business growth. She has worked in product and marketing in the tech industry for over 8 years, and studied Digital Marketing & Analytics at the MIT Sloan School of Management Executive Program.There are 20 references cited in this article, which can be found at the bottom of the page.wikiHow marks an article as reader-approved once it receives enough positive feedback. This article received 19 testimonials and 87% of readers who voted found it helpful, earning it our reader-approved status. This article has been viewed 350,197 times.
If you want to start a small business or expand an existing one, then youll need to find money. One option is to bring on investors. There are many potential investors out there. However, you need to identify which ones will invest in your business and then put together a compelling presentation. When you meet with investors, remember to answer questions with confidence.
Motivation Of Angel Investors
The motivation behind investing can differ with each angel investor. Most invest for one of three reasons:
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Know What You’re In For
Look for ways to keep the amount of equity or percentages as low as possible when negotiating with an investor. For instance, ask for a smaller amount of money initially, rather than a sum you feel youll need over a few years. This allows you to give away a smaller slice of your business in exchange for the capital, leaving you with more as owner of the company.
Forget about being too aggressive in your negotiations, however. Bear in mind that if the company falls flat, then the investor gets nothing. A business investor will not shell out the dollars unless they’re being compensated for the risk they are taking.
Angel Investors Arent Your Only Option
Many businesses look to angel investors to get the financial backing they need at an early stage, and these types of investments certainly have their merits.
However, its not your only option to get your business rolling. You could crowdfund your business through a platform like Kickstarter or even apply for a business loan.
While the little voice in your head might be telling you that youll never qualify for a loan, thats not necessarily the truth. With Lendio, you can fill out a simple application , compare your lending options, and get your capital in less than 24 hours.
That quick application could be all that stands between you and the funding you needand you wont even have to part with equity or beg your loved ones for money to get it.
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How To Say No
Be compassionate but firm when declining to fund a family members business.
Saying no is rarely easy, especially when it comes to family. Soften the blow by thanking your loved one for thinking of you as a potential investor. Be forthright, and dont beat around the bush. If its not a good fit, tell them so they have time to find funding elsewhere.
Dont be surprised if your loved one wants to know why you wont helpwhich can be a delicate situation to navigate. If your reason is purely financial, they have no room to argue. However, if you have doubts about the viability of the company or the trustworthiness of the person asking for help, try to explain with honesty and compassion.
Of course, if you see holes in the business strategy and are comfortable providing feedback, you could help your loved one succeed. Constructive criticism is meant to offer guidance and solutions by building on your loved ones ideas, not tearing them down. You might even decide to reconsider their proposal once theyve addressed your concerns.
Be compassionate but firm when declining to fund a family members business.
Saying no is rarely easy, especially when it comes to family. Soften the blow by thanking your loved one for thinking of you as a potential investor. Be forthright, and dont beat around the bush. If its not a good fit, tell them so they have time to find funding elsewhere.
Turn To Designated Platforms
Thanks to the internet, we have piles of information right at our fingertips. There are a number of platforms designed to help entrepreneurs find angel investors without even leaving their couch.
Some of the best options to check out include:
- Angel Capital Association : Using the ACA member directory, you can choose your location and see a list of angel investors near your area.
- AngelList: AngelList has a long list of angel investors in North America. You can also see details like their location and number of investments.
- Invstor: Invstor is another platform designed to help you find angel investors and venture capitalists. Youll need to post a funding request by submitting some basic information about yourself and your business , and then choose if youd like to access the investor network yourself or have Invstor send out a request to the network so interested investors can contact you.
LinkedIn can also be helpful. Use the search functionality to search angel investor and then click the top menu option for people. From there, you can apply additional filters to narrow down by location, company, school, or even your degree of connection.
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Preparing For Your Meeting With An Angel Investor
Angels typically invest in companies that not only have great ideas, but a great team, and a track record for executing those ideas. For that reason, get to know your industry and your competitioneven more than the investor.
Be fully prepared before you reach out and have all your information ready for the investor.
Show the potential angel investor a prototype or demo of your product and talk about the customers, even if they are currently non-paying, who will be using it.
Investors need to see your financial statements, including any outstanding debt, revenue projections, and the ownership and legal structure of the company.
How To Find Business Investors In Canada
Growing a business is hard. There are a lot of factors that you need to consider, including developing a financial plan, determining a timeline for upgrading equipment, and investing in product development?
There is also the possibility of outsourcing some business tasks that take particular expertise, like accounting and bookkeeping, marketing advisors, and a virtual assistant. All of this costs money upfront that will help you run your business smoothly. This is an investment that will be worth it.
There are many ways to fund your business, with finding investors being a major one.
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