How do small and micro businesses attract investment?

How do small and micro businesses attract investment?

Some business projects are not suitable for venture capital financing. There are many reasons why founding small and micro-business owners need to get investments in their businesses (scale-up, expansion, new markets, new equipment, expanding product lines), even if it means co-ownership or other types of business partnerships.

Individual approach

You do not need to do a mass mailing with the same business proposal template. You need to find a few people who are funding the amounts you need in your industry. Each investor has a different preference for the area of business they are investing in, what stage of financing is taking place, etc.

Make your letter as exclusive as possible. Ask the investor for advice. This way you can build a relationship with him or her, which may later lead to a desire to invest in your project. You may not ask for investment directly. Describe your project, and ask who might be interested in funding it.

Presentation

Make a succinct presentation or short video about your project. In many cases, a video works better than standard text.

Next Step

If your presentation or video is of interest to the investor then you will need to prepare your business plan thoroughly. After all, your prospects are much more important to the investor. The business plan should not be too voluminous and formal.

Searching for investment takes a long time, so be patient. And remember, investments are not only about money, but also about the people who give it to you. Choose your business partners as carefully as you choose your life partners.

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