1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Best way to find investors

Discussion in 'Business & Tax Advice' started by blackbourne, Jan 5, 2017.

  1. blackbourne

    blackbourne Newbie

    Joined:
    May 27, 2014
    Messages:
    5
    Likes Received:
    0
    I want to build a garden supply store in my area the nearest one is like 2-2 1/2 hrs away and the market for garden supply is about to increase because of my neighboring states law changes..:) 420 friendly but they cant have any grow supplies so i was thinking about being the supplier for the area sense im in another state and it's totally legal here. MY question how do i find good investors and how do i compensate them or whats the best way to take care of them for their investment??
     
  2. seoguy81

    seoguy81 Senior Member

    Joined:
    May 18, 2011
    Messages:
    1,014
    Likes Received:
    252
    Occupation:
    Donkey balls
    Crowd funding
    Bank loan
    Friends circle
    Your savings if you have any
     
  3. toml3030

    toml3030 Elite Member

    Joined:
    Aug 16, 2014
    Messages:
    2,182
    Likes Received:
    740
    In 99% of the time, until you actually get the project off the ground, you need to hit up personal savings, friends, family, crowdfunding, etc. No outside investor is going to invest in an idea because if the idea is that good, they'll do it themselves and they don't need you. An outside investor usually gets involved when you already got the project off the ground and it has customers and revenue and you're ready to go to the next level.

    Source: I'm an outside investor who's invested in projects such as a medical lab, gas station, and a hotel.
     
  4. RuthSam

    RuthSam Jr. VIP Jr. VIP Premium Member

    Joined:
    Mar 19, 2010
    Messages:
    3,813
    Likes Received:
    976
    Gender:
    Male
    Home Page:
    I agree with the rest here. You need to come with money to get more money. Why should an investor take all the risk alone?
     
  5. Bobtx85

    Bobtx85 Registered Member

    Joined:
    May 30, 2016
    Messages:
    87
    Likes Received:
    21
    Gender:
    Male
    In my first venture I used friends as investors. If you think it's a good enough investment for you to put your own money in then you can probably make a case that will convince some people you know. Just be sure they realize that they might not make a dime. Also make sure you are comfortable burning your friend's money.

    In terms of compensation, the only practical way is giving them a percentage of the business. Also, don't go over valuing yourself. If your buddy finances 95% of the capital, don't think you'll get away with keeping 90% of the equity. Nothing pisses me off more than a pitch from someone wanting me to have all the risk and offering peanuts in return.

    In the long run for a successful company, debt is always cheaper than equity so you can also go that route. If you are super confident in your idea PM me and I'll tell you how to get some capital through debt.
     
  6. blackbourne

    blackbourne Newbie

    Joined:
    May 27, 2014
    Messages:
    5
    Likes Received:
    0
    Thanks for the responses everyone
     
  7. webdev357

    webdev357 Junior Member

    Joined:
    Oct 18, 2016
    Messages:
    102
    Likes Received:
    10
    Occupation:
    Web Designer
    Location:
    California
    angelslist
     
  8. Crippler Mohane

    Crippler Mohane BANNED BANNED

    Joined:
    Jan 15, 2017
    Messages:
    15
    Likes Received:
    0
    Gender:
    Male
    Get a bank loan mate, like i always do.
     
  9. Smileyヅ

    Smileyヅ Regular Member

    Joined:
    Oct 16, 2012
    Messages:
    442
    Likes Received:
    114
    Gender:
    Male
    Location:
    海南省
    Agree with everyone here. Unless you were successful before no one will come to invest on you.
    Better option invest your own money or take loan from Bank
     
  10. blackbourne

    blackbourne Newbie

    Joined:
    May 27, 2014
    Messages:
    5
    Likes Received:
    0
    Ok will do
     
  11. blackbourne

    blackbourne Newbie

    Joined:
    May 27, 2014
    Messages:
    5
    Likes Received:
    0
    And thx everyone for the input
     
  12. mj10pop

    mj10pop Registered Member

    Joined:
    Mar 25, 2008
    Messages:
    71
    Likes Received:
    6
    Investors are easy to find but you must have a something to show them.
    First you need a business plan with financial of 3 years + why you are important to business.
    After you have business plan and details
    Ask your friend and family ask them for refer someone who might be interested
    Go and interact with the people/friends/family/colleagues if they are not interested ask them for refer someone.
    Now be smart interact with new people intelligently.
    Question:where can you find people who can invest?
    Answer: Where most of investment people are gym/aerobics/professional classes/dance classes/local clubs/etc etc (add them to whatsapp skype keep in touch with them join local groups in your city) Be active Be interesting Make Friends

    Question:Why they will invest ?
    Answer: They trust you be very straight with them you will have your investor in no time. Do show what is at risk and what are the rewards. Do show them exit if business didn't succeed. In the end its your business plan which have to answer all the questions.

    Be careful of sharks :cool:
     
  13. Jinny Mac

    Jinny Mac BANNED BANNED

    Joined:
    Jan 26, 2017
    Messages:
    15
    Likes Received:
    1
    Gender:
    Male
    Make sure your investors get what idea you are trying to share to them.
     
  14. herveh35

    herveh35 Newbie

    Joined:
    Jan 25, 2017
    Messages:
    6
    Likes Received:
    0
    You could try to apply to some incubators if your product is good. They will give you free money or a loan at 0%.
     
  15. toml3030

    toml3030 Elite Member

    Joined:
    Aug 16, 2014
    Messages:
    2,182
    Likes Received:
    740
    Nobody gives you a loan at 0% without an ownership stake.