How to get money to grow your business

One of the ways to find money for the development of your business is to search and attract investors. In the West, people who finance other people's projects, including at the initial stage, are called business angels. However, they do this not at all from charity, but solely for the sake of earning. In Russia, this phenomenon is still in its infancy. But already present.

You will need

• - business plan;

• - access to a potential investor;

• - communication skills.

Instruction manual

1

The first thing a potential investor wants to see is the business plan of your project. Any business person, investing his money in one or another undertaking, wants to know a clear answer: how much, what and when he will receive in return. If you do not have a business plan with a clearly defined financial component, no one will spend the wrong thing on your project that money, even time to get acquainted with it. When drawing up a business plan for receiving a state subsidy, the social significance of the project is put to the forefront. When attracting investment, it can also have a certain value, but definitely not a priority.

2

Before writing a business plan, it will not be superfluous to read special literature on this process, perhaps even take courses in business planning (but choose very carefully. There are a lot of frankly not worthy of attention among the educational products of the currently popular business topics).

What you read and hear is critical. Your potential investor is unlikely to be impressed that you have mastered the various types of business plans. But the content of this document can either hook it or not.

3

Show the finished business plan to a specialist, it is better to several and from different places. Willingly advise on writing business plans for a small fee at regional entrepreneurship development agencies. But do not forget that agencies are mostly used to business plans for state subsidies, the main reader of which is an official who decides whom to give money to. A private investor has somewhat different interests than the state.

4

When the business plan is ready, you can begin to search for an investor. Here, all available methods are good: through friends who can bring you to the right person and recommend him, various funds that finance business projects … There is no one hundred percent probability of failure when you contact the candidate of interest to investors directly. In general, to break through, need to dare. And success can come from the most unexpected side.

note

Before you attract other people's money into your project, carefully weigh everything. The probability of being left with nothing can be great, and the debt will not go anywhere.

Useful advice

When searching for investors, the "first - most difficult" rule works in full. However, finding the next one if necessary (and under the condition that you fulfill all the obligations to the first) will be easier. They are more willing to cooperate with those who have already found at least one investor, and various funds offering financing of business projects.