Finding an adviser you trust and respect is critical, experts say, so don’t just sign on with the first person you meet. The question is how do we know the right investor for your business. The first investor that we can think of is our family. However, it is not really a good idea to involve your family member into your business. Money matter is a very serious subject and if you want to keep a good relationship with your family its better to keep them out of your business. Where do you go next? Here are some people that you can consider.
Lending Clubs, they are a bunch of investors that loan out money to people that has a very good credit record. This is the easiest way to seek for financial help.
Commercial Banks, this is also a best choice if you are putting up a new business. But before asking for a loan, the bank require you to have a business plan so better be prepared and make sure that your business plan will make an impact.
Partnerships, you can consider looking for a partner if you are already having a hard time looking for private investors. There are two types of business partner, the Silent type and the active one. Silent type is they just let you run the business on your own, on the other hand the active is the type of partner that they will involve themselves in your business. The best place to look for a partner is at chamber of commerce or you may want to join an organization or group of business minded individuals.
Angel Investors, this is a common choice for a startup entrepreneur. These people are willing to invest on small startup business. They will provide you funds and they will closely look into the progress of your business, just to make sure that you are on the right track.
Venture Capital, These are people or group of people that invest on established company. Consider yourself lucky if you are able to convince them in investing to a small startup business, however if they say no, most likely they will refer you to other private investors who are willing to invest.
Always keep in mind that in order to attract potential investors, you should have a solid business plan to present. The key is, don’t be timid or afraid to ask. People will help you if you just ask and if you ask enough people you won’t have any problems finding a private investor for your startup small business.