Forums: Discussions for entrepreneurs and small business.

I was wondering if anyone knew how to get investors in your company and where do you find them? How do you make them interested in your company? If any one knows please help!  (the company is a clothing line if that helps any)

I highly recommend that you read Mommy Millionaire by Kim Lavine. She talks a great deal about this. She also has a great blog. Good luck!

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Thanks for your help

For the business that I am currently starting, we got funding from 4 sources that are probably available to most people:

1. Home equity
2. Family/Friends
3. Personal loan
4. Existing/potential customer with industry interest

1 & 3 depend on your own credit worthiness. These are great and easy sources of capital, but plan ahead. If the business gets in trouble, would you need these sources to live on? If so, maybe don`t tap them so deep for the business.

2 depends on having family/friends that have a little money. My mother contributed to my business because I promised her a greater return than she was getting from the bank. We structured it as a loan.

4 is a fantastic source. Customers who believe in your product and want you to succeed (for selfish reasons even) are great. If they also have industry experience, they may also be of great assistance over time. If they want to get into the industry, that can help draw them in to invest in your business. I tapped a customer that also wanted to break into my industry and he was excited for the opportunity.

Doug

To some degree, it depends on the stage of your business. One constant I`ve found is that the potential reward needs to be commensurate with the perceived risk.

You didn`t indicate the stage of your business, so since I work with early stage companies, and have more history with that group; I`ll give you my observations accordingly.

1. A perfect business plan will not get you investors - but a poor one will most certainly loose them for you.

2. Capital is attracted to things that are organized, concise and clearly communicated - repelled by those opposites.

3. In virtually every client case where capital is acquired the following two conditions existed:

       a. The investor resonated with the "problem" being solved by the product/service.

       b. The investor feel a "connection" with the entrepreneur.

4. Finally, while the "idea" (concept, etc) may excite them, it is your ability  to execute that moves them to invest. Thus the "team" is crucial.

Hope this helps.

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Business Growth Masters, LLC -
Capital Catalysts for Entrepreneurs
Home of the Scalable Business Plan and QuikStart Capital Programs
http://www.bizgrowthmasters.com
info@bizgrowthmasters.com

A few different sources to consider:

1) Friends and family
2) Friends of Friends and family
3) College alumni
4) Current employers (Weird but true)
5) Local Business chamber of commerce or similar
6) our site (http://www.AdvisorGarage.com)
plus the usual angels, VCs etc...

 

 

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Andrew PS - Here's a free report on creating your startup success. Free report

After a few years of wondering the same thing that you are - I finally realized something.  I realized that...I am an investor!  So I started asking myself questions like "Would I invest in me - if I didn`t know myself or my business?"  or "If a friend came to me and presented the same investment oportunity - presented exactly the same way - would I support them?"

After I started asking myself those questions - I started working on making myself become the kind of person/business that people would want to invest their time/money in.  Ever since I started working on myself - it has been much easier to convince others.  Because now I have something to show them that they can latch onto.  Of course...now...I have to prove myself - that my idea was worth their time and money.

My 2 cents
Joe

I have a friend here in Los Angeles who found and investor, an already established clothing line, for her line by sending out samples of the clothing to the top person at the company. She figured that he or she probably had kids, so she sent out 4 or 5 items to each person/business in hopes that someone contacted her back.

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The ConsumerTreehouse.com Team
www.consumertreehouse.com

Dramagenics is right on.

If the idea is good enough that you are putting your own money, or life saving into it, it is probably a good idea and some other investors will be interested in.

And guess what, if you really invested your own money and time, even 100K can get a lot of things in order (patents, suppliers, very accurate financial planning etc). Investors like that.