Where to Find Growth Money
For Your Business
A solid business idea will attract potential investors like bears to honey. Would you believe more people are looking for good investments than there are good opportunities? The trick is to plant your honey pot of an idea outside the right bear caves.
- If you’re looking for a “working partner” with capital, the emphasis will be on the career opportunity rather than the financial return. Precisely define the skills you need and seek out prospects just as you would an employee.
- “Silent partners” kicking in small money in the $5,000 to $50,000 range are generally high-income individuals in the over-40 age bracket with spare investment dollars. They are constantly on the prowl for small business deals that can create enormous long-term gains not offered by conventional investments, hedged by the reality that the IRS will share their losses if the business doesn’t make it. Professionals, executives and business owners fall into this category.
- Hunt for candidates who have been in your type of business, have succeeded and are now retired. They are quicker to invest because they know your business, have more confidence in it and often enjoy reliving their career through your venture.
- Don’t overlook people who can not only benefit from the profits of the business, but can equally benefit from doing business with you. Suppliers come under this category and so do distributors or potential customers
- Put your accountant, banker and lawyer to work. They have plenty of clients with investment money and can oftentimes sell a deal on the basis of favorable tax angles alone.
- Advertise. Partnership money is “bought and sold” like any other commodity. Place a simple ad in the classified section of your newspaper, describing your deal and the cash needed. The New York Times prints an entire column of “capital needed” listings every Sunday. So will your metropolitan newspaper. While you’re at it, scan the bulging columns marked “Capital Available.” It shows just how many people are anxious to exchange money for a partnership interest.
- Promote your deal. Mention it to your barber and you may end up with his father-in-law as a partner. Many marriages come about through word of mouth.
Don’t limit yourself. Set up an active campaign to network your deal. The objective is to have 20 to 30 interested partners. That’s the only way to keep the upper hand, bid one against the other for the best deal and find the right partner.
This entry was posted
on Friday, July 17th, 2009 at 9:49 am and is filed under Business Financing.
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