Never looked for an investor offline before, any suggestions?

C

CodSpot

Win
May 18, 2010
576
4
0
Mars
www.codspot.com
Well, I've finally hit the wall where start up has become out of my hands for my hybrid business. I've always funded my own endeavors so I literally have zero clue when it comes to finding an investor/angel. Ive got a business plan, and clients already, I just want to expand.

What would you suggest looking for in an investor/angel?
Where would you start looking (other than a bank)?
Would you go through the local small business association for information rather than a gay webmaster forum? :p
What is a reasonable short term return rate?

Any suggestions/advice on getting personal loans/investors/angels I'm all ears.


Much love,
Nate
 


Network, network network- that is pretty much the only way and the best way. Sure they have these online sites, but from what i hear its not too great for entrepreneurs.

My suggestion would be to talk to fellow entrepreneurs, tell them about your plans, what you are looking for and see if they can connect you with someone who can guide you in the right direction.
 
These capital markets will rob you blind. Look out for a financing partner, someone that understands the business you are in and take it from there.
 
Bevo Ryan said:
Network, network network- that is pretty much the only way and the best way. Sure they have these online sites, but from what i hear its not too great for entrepreneurs.

My suggestion would be to talk to fellow entrepreneurs, tell them about your plans, what you are looking for and see if they can connect you with someone who can guide you in the right direction.
Click to expand...

Definitely! I've been networking with peers who have successful businesses, 99.9% of them LOVE what I'm doing, yet 99.9% aren't throwing blank checks my way. I never thought it to be so difficult to get start up/expansion money in my lifetime. I stand corrected.

AustinP said:
These capital markets will rob you blind. Look out for a financing partner, someone that understands the business you are in and take it from there.
Click to expand...

Yeah, I've always got my eyes and ears peeled for a financial partner. I would gladly take someone on under contract and let them do nothing while funneling money into my endeavor.
Eh, it's all a new concept to me, and maybe I'm just too pussy to bring up the topic of financing a growing business.
 
Its hard to ask people for money. How much are you talking anyways?

Ive seen people liking for investers and business partenrs on Craigslist but not sure if that works well.

Your other opion could be to ask family members.
 
Big Joe said:
Its hard to ask people for money. How much are you talking anyways?

Ive seen people liking for investers and business partenrs on Craigslist but not sure if that works well.

Your other opion could be to ask family members.
Click to expand...

Well since I've funneled all of my money from savings into this endeavor on start up, I'd just need expansion funds, I.e. For an office mostly, start up for new clients to offer more than what I am now to add value to my service, and a few misc. Things, so anywhere from $4k,$7k - could make it work on a serious budget around $3k I could make work. It's an extremely low loan amount, which would have been easily covered by myself if I didn't funnel my funds elsewhere to tie them up.

As far as family, I try to keep them out of my professional life, I was supporting them for a majority of my successful years.
 
Already looked into it, hard to do when they're maxed. The issue can be fixed financially in due time, I just didn't plan my spending accordingly when I was on top, now I feel like I'm on the bottom. I can get out of this funk if I knew how to appropriately approach an investor/angel. I invested in a local business July of 2011, A LOT of money, more than I should have, to slowly watch that business fail daily, so that aspiring fat boy paycheck I should be getting monthly has completely stopped with false promises from the owner with a terrible plan in his market, which I went into knowing investing is a gamble. So no one to blame other than myself.

Before I can even dish out that small amount, I need to get my ball rolling. I think today I may just take my business plan to a couple banks, which I wanted to avoid the bank, but it may not be a terrible idea, idk.
 
CodSpot said:
anywhere from $4k,$7k - could make it work on a serious budget around $3k I could make work.
Click to expand...

Prosper.com or one of the other peer-to-peer lending sites.

Edit: Are you sure what you are doing really requires an office? Look into coworking locations, save money, boot strap.
 
Honestly $3K is a joke.

What are you planning on offering an investor in retun when your money is for an office and to offer your clients more services? Whats stopping you from working where you are and growing your business to a point that it allows you to expand. It might be harder because of you personal life but to borrow money from a third party to make yourself in a more comfortable place isnt a very good idea.

Maybe you just came into tough times but if you let any investor know that your maxed on CC and have a sob story about why than tey will see you as a bad investment.
 
justo_tx said:
Edit: Are you sure what you are doing really requires an office? Look into coworking locations, save money, boot strap.
Click to expand...

The office is actually becoming more and more of a necessity. My business is based around one on one meetings with prospect clients, and starbucks just isn't cutting it anymore if you know what I mean. I actually lost a client last week because he felt the meeting was not in a professional setting. It was a big client. So having the professional setting would increase my conversion tremendously.
 
Big Joe said:
Honestly $3K is a joke.

What are you planning on offering an investor in retun when your money is for an office and to offer your clients more services? Whats stopping you from working where you are and growing your business to a point that it allows you to expand. It might be harder because of you personal life but to borrow money from a third party to make yourself in a more comfortable place isnt a very good idea.

Maybe you just came into tough times but if you let any investor know that your maxed on CC and have a sob story about why than tey will see you as a bad investment.
Click to expand...

I completely understand. I'd obviously not speak of personal downfalls with an investor, nor my credit liens. The return I'm not even sure of due to the lack of knowledge dealing with private investors. I've also seen investors obviously turn me away due to the minuscule amount

The reason for wanting to expand now is because if I hold off, it will deteriorate my business as far as the way I'm now viewed by clients. Granted most clients don't mind because they respect me and the service I'm providing, but after losing clients, and not grasping the bigger clients attention from lack of setting, it's a terrible economic loss.

I could obviously stay away from expanding, and let the competition eat me up, yet spending much more than I would to be up to par with them. I'm sure I'll figure this slight delima out, I always do, just looking for alternate options to see if they're even possible.

I do appreciate the valuable feedback from everyone, this is why I love my Wf family :)


-Nate
 
If you have such a great business model you should be able to save up this money in the matter of a few months. If you jumped into an office now than you would have to worry about paying this rent every month anyway.

Make it work for the time being. Meet at your clients place of business.

You may also want to consider a virtual office in a building that offers conference room time.
 
Definitely, I've still got a bunch of research to do to to cut costs and lower the extreme debt I'm floating in, whilst being able to top my local competitors.

A virtual office is not a bad idea.
 
It may be a good idea for you to cross check your business plan with an experienced and successful business person. Maybe someone you know already and trust. Not to ask for money, and be genuine about that, but to have them cross check your plan.

You have seen previous posts in this thread where people are asking you questions such as - why not stay where you are, solidify, and then expand - etc.

Because you are at such a very entry level with only needing $3K-$7K then I have to assume you are relatively new at business or have hit some very hard times. Either way it is good to cross check your ideas of business expansion with reality.

There are organizations where you can discuss business plans etc for free with former business people etc.

You simply want to make certain that our ideas for expansion are the proper move at this point.

As a last resort if you do not have anyone to bounce you ideas off - check your business acumen by seeing how billionaires view, analyze, and look at small start-ups by watching old episodes shark tank or dragons den (sometimes even at justin.tv etc if the networks do no have enough episodes on their sites) These guys are not the end all - but if you have no other advisors - at least you can see how others analyze ideas. They are constantly telling people to not expand, to shore up where they are, then move forward etc.

But who knows - maybe you need to expand. I surely do not know.

Otherwise build a few MFA's, wait 60-180 days, sell on Flippa ---> fund your business.
 
Angel/investor amounts for startups are typically 6 figures and beyond. You've got the wrong terminology here. At just a few grand you're in signature loan territory.

If you go with prosper like Justo recommends, PM me your loan app and I will shoot you 5 or 10%.
 
You must log in or register to reply here.
Top Bottom
Back