Find an investor for my business?

Lynne Level 1

November 20, 2016, 6:50 am

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I have a new business idea, yes another one! Now the thing is that right now I don’t have the time or the money to get to it but I know it will be so seriously profitable so I want to get cracking on it.

It will take a few months to get off the ground and I will need to have some programming done to customize my website exactly how I want it.

The next problem I have is that I will need to have a sales rep to go out in the area I live in and get people to sign up. This person will need to be paid. I will be working on a commission basis for this, but I also need to pay a basic salary too.

I would love to find an investor for my business to help with these initial expenses, but I don’t want to give this investor a cut of my business for life, or control of my business in any way.

I was just wondering what members here have done if they have been in my same situation? I know that I have a brilliant idea, I’m just not sure how to go about this.

On the programmer/ coder side I will most likely need some programming and coding done every now and then since nobody just leaves their website as it is, I know I will come up with ideas that will make it bigger and better all the time!

Perhaps a partnership with a coder would be a good plan?

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CryptoGuru

You almost always have to give a part of your business up when your looking for money. First thing they will want to know is how much money profit you make every year for the past 3 years. How much you want? How you will be using the money? Its always a good idea to come up with a business plan and then start looking. Maybe an investor is not what your looking for. You need to build a team of people who are already successful in business. This will allow them to work on a commission basis or even for FREE until the business takes off. I currently have a few people like this and they work on faith that i will succeed for now. If you have a good plan and motto you will be surprised at how many people will put forward the time needed for free just to get a piece if it takes off. I have been looking for investors for so long i gave up lol! Mike was suppose to help me get a crowd funding campaign going but idk i guess we are both really busy. Have you thought of crowd funding?

10 years ago

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Lynne

Thanks Jkeyz2 yeah I'm not so sure I want to do crowdfunding for this project. I did think of it but I don't think that is the way that I want to go with this.

I may just speak to a few people in my area and see if perhaps someone is interested in investing. I might just have the person now that I think about it.

10 years ago

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EliteWriter

Since you seem to be really confident about the success of this idea, why don't you try to get a loan. There could be a relative to help you out maybe. Or you could try getting a small loan from a bank. Generally interest rates are not that high if you specify that you want this for business purposes. In time it would prove more cost effective than giving a long term share to a partner.

10 years ago

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Lynne

Oh noooo I have such a thing about getting a loan now. I got myself into such a huge mess, you know my addiction? Well no more loans or anything like that.

But yes you are so right about the fact it would be so much more cost effective in the long run. I'll come up with something... but for now I am brain storming ideas.

10 years ago

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Everett

I thought about looking for investors for a project I was gonna do, and I researched it. The results I have found wasn't so good. For instance, those investors invest because they want to profit from your project, your project fails then you'll be tainted and no one will want to invest with you no longer because the service failed. Another thing was, once you have investors you're basically giving away bits and pieces of your product or company or whatever it is that you need investors for.

Lastly, the biggest bad result was you'll be doing everything not for your company, but for the investors. In essence you're working for your investors so they invest and you stay afloat. I probably wouldn't want investors because I would enjoy saving the money and doing everything by myself without help from others. People whom give money for business purposes, usually expect way more in return..

10 years ago

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Lynne

Yes Everett that is my fear. There is a reason I work for myself and all alone... because I don't want anyone benefiting from my hard work or getting a free ride.

I also don't want anyone telling me what to do. If I wanted that I would go and get a job!

10 years ago

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Cristian

Yes, if the coder finds the idea good enough you can make a deal with the coder and give him a percentage of your future business. A lot of companies started that way, don't want to be rude but most coders out there are brilliant people but few of them have any vision on entrepreneurship, so that's where you come in and make your contribution.

You can also look for investors with a lot of money to play with, you just need to hang out around the right circles to make a pitch.

10 years ago

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Lynne

Thanks Cristian. I have found my coder and we are talking about pricing. I am just going to save up for these things. I am so not wanting to give away huge cuts of my future profits.

10 years ago

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softnwords

I can code your website as needed.Please let me know details

10 years ago

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Lynne

Thanks so much, I've got my coder already!

10 years ago

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hitmeasap

Hey Lynne,
Thanks for a good and interesting question.

I would love to find an investor for my business to help with these initial expenses, but I don’t want to give this investor a cut of my business for life, or control of my business in any way.

Usually in these cases you'd probably have to find an investor to cover the expenses but it's also hard to find investors without proper deals. When I invest in people's ideas or projects I've usually been covering all the expenses but I've usually got the money back after the first 6 months or so.

I've often set things up like this:
I pay $1000 and cover their expenses.

From month 1 and 6 I get 50% of all the incoming money, until I got my $1000 back. After that I've usually settled for about 10% further on but in some cases I've got both 25% and 50% in the future too. I guess it all depends on the investor, the potential of the business and how much the investor has to pay for starters. Oh, and I've never had any control either.

After all, it would not be fair to return your investors money and leave him with a on-time payment of $100 or whatever as a "thank you for the help". - It's hard to find decent investors to begin with, so I would try to find an investor with some similar terms like I've stated above. 50% back the first couple of months and after that pay him 10%-25%. Without the investor, you wouldn't have your business, so it's fair to give them proper deals. And if they want some sort of control, then I wouldn't give them more than 10%. Without control, up to 25%.

10 years ago

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Lynne

Yes Andre that is very true what you say, why would anyone want to invest when they are not going to get a really good return for their investment, especially since they are the one taking the risk.

I get all that, but I am not sure how to go about this without some sort of investment. I believe this is going to be a really good business with great long term earning potential and I don't need such a huge amount of money to get started.... I must just have a good think about this.

Thank you for your input.

Oh and I guess I wouldn't really mind having someone give more help with the day to day running of the business as well as invest some money, and I also wouldn't mind having that person having like 40% control... IF I find the right person. Someone that won't screw me over and someone that will work their butt off like I do. The problem is that I see it all the time where people go into business together. One works his or her ass off and the other takes a free ride.

I don't give free rides!

10 years ago

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hitmeasap

I hear you Lynne. You could potentially just set up something "easy", depending on the person who will invest of course. How much are you looking for? - You don't have to tell I just thought it might be easier to give you further advice in case you told me/us how much you're looking to get. Secondly, how much do you think this business could potentially bring?

These are questions you'll have to have some sort of answer for and I know it's tricky to have accurate ones, as you don't even have the business started yet, but some average numbers would be good to have when you discuss things with someone who might be interested.

So, you'll need to know how much money you want, how much money you could potentially earn and how much the investor will get. Oh, and how long it will take to give the money back to the investor, in case he gets his money first.

10 years ago

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Lynne

Yeah it is tricky to figure it out... I would think within about maybe a year or two it would be bringing in about $10 000 a month.

I still need to get a quote for the programming/ coding I would need done but I can't see that it would be a huge massive thing to design - this is my main concern and my main expense. I have my domain set up and I have my hosting... I just need the programming done.

I have already spoken to a number of people in the area and I have a few customers lined up! It is going to fly.

Then of course I am going to need someone in the area to do some sales for me. This can be a basic salary plus commission... this won't be hard for me to find.

10 years ago

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hitmeasap

Wow Lynne! Sounds like you have a very lucrative business idea! - I'm happy for you, and as always, I wish you the best of luck!

A salary plus commission is usually a super idea and many people are looking for jobs like that. I've worked like that myself too, when I sold newspaper subscriptions here in Sweden. Probably THE best job I ever had.. But I was awesome at it too, so I bet that's why I liked it

10 years ago

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Lynne

Yes and it will be safer for me too since I have found so many people are lazy! I am happy to pay someone that I can trust will work their butts off a great salary... but chances are bleak that I will find someone like that.

I want to pay someone a pitiful basic and give them a huge incentive to work really hard and make a lot of money.

10 years ago

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hitmeasap

People are lazy Lynne. And people are daydreaming about thousand dollar weeks. - Which makes it hard to find decent, trustworthy and good people. - I faced the same issues when I hired people for various projects for my brand building business. Tons of people were interested but I told them that they'll get paid for each thing they do and they could literally do unlimited things each day, it was all up to each and one of them.. But many of them refused, as they wanted some sort of fixed salary, and most of them wanted their payments daily.. I just told them that I can't be sending payments daily, as I had several team members and sending payments everyday would be too time consuming.

I finally got a few amazing workers and they were happy to get paid for each task they did and they were totally fine with a weekly payment. - It's bummer I can't really use these people nowadays.. Perhaps I can if I come up with a decent project though.. Future will tell.

Anyhow, I wish you the best of luck Lynne!

10 years ago

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johnoneil

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9 years ago

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Barida

You have to put it down on paper in form of a business plan and start asking about some banks or government agencies in your area that gives loans and grants to emerging businesses that are looking to start off. In Nigeria, there are many agencies that are willing, having getting funds from the government, to help out emerging businesses to start off. So, make it a business plan and search for those agencies.

9 years ago

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Kakashi2020

What I learned the hard way is to never get a partner and or an investor when it comes to your business. Because the risks are high that you won't be able to deliver on promises. It's better to get a bank loan if it's guaranteed by income from present contracts or orders. This way you could be sure that your business stays afloat while maximizing all earnings and profit.

8 years ago

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Kakashi2020

If it's a physical business then I would call everyone listed in my phone book to discuss the possibility of a business partnership. Usually this works, there's always some friend or acquaintance which would be interested in a new business.

8 years ago

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Seoclerks

Find an investor for my business?

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