Money is undoubtedly essential to the success of companies, so it is no surprise that 82% of American small businesses collapse due to cash flow issues. As an entrepreneur, you need money to bring your business idea to life, run your day-to-day operations, and fund your growth efforts. Business owners rarely have all the money they need to run their companies, but they don’t have to do it alone.
Indeed, many investors are willing to support your business if it shows several promising signs; here’s how you can find these investors.
Turn to the Small Business Administration (SBA)
Every American entrepreneur is, without a doubt, familiar with the SBA. This agency focuses on bolstering the U.S economy by assisting the nation’s small businesses. Most recently, the agency was in the news for overseeing the distribution of about $416.3 billion in emergency relief funds to over 6 million small businesses affected by the pandemic through programs like the COVID Economic Injury Disaster Loan (EIDL) and Paycheck Protection programs. The SBA itself does not lend out money, but a lender website’s match tool helps companies find investors and lenders approved by the administration. Therefore, you can readily find a small business investment company (SBIC) willing to invest in your company via this helpful government agency.
Seek out private equity investors
Private equity firms invest in or acquire private companies at specific stages of their lifecycle. The liquid capital and business acumen that private equity investors bring to the table ensure companies can develop and grow quickly. Besides having deep pockets and a wealth of expertise, these firms can also help entrepreneurs grow their network by introducing them to valuable business connections. The good news is that there are private equity investors in every sector. For instance, healthcare private equity investment is available to help companies in the healthcare sector flourish and realize their full potential.
Contact schools or businesses in your field of work
There is a high chance that you already know several individuals in an identical line of work as yours. Therefore, you can connect with them to see if they can recommend investors who may be willing to invest in your enterprise. Admittedly, this research process may take significant time since you can unlikely find people willing to invest from a single phone call. You may even have to call several people or attend industry events to network. However, if you continue digging diligently, you might be introduced to someone who likes your company’s products and services or business plan enough to invest in it.
Alternatively, you can turn to schools that provide degrees, diplomas, or certificates in your field to find potential investors. This is because professors typically invite guests to speak on particular topics. These guests are often accomplished and wealthy experts in their field. Therefore, you can see if a professor or someone in the department can reach out to these guests on your behalf and set up an introduction.