There are several basic and proven options for finding investment. First of all, the choice depends on the stage of business development. And of course, each method has its advantages and disadvantages.
Help from friends and relatives
If you are looking for how to attract investment in your business, the most obvious and accessible way to find funds is to ask your relatives or friends for them. You can hold a small meeting where you tell people about the project and its prospects, and also outline your needs and the amount needed to achieve success. Depending on the circle of people participating in the conversation, you can choose different forms of communication: a story, a presentation, etc.
Decide in advance what type stockholder data package of financing you expect from your loved ones. This could be a loan or equity investment. You can repay the loan by agreement in convenient parts with or without interest. With the second investment option, your lender will receive a share in the business. At the same time, he must understand that he will return his money only if the project is successful.
Nuances of applying the financial recovery procedure
The pros and cons of investing in a business from relatives and friends are quite obvious. There is an opinion that you should not mix friendship and business relations, so as not to spoil both.
Pros:
Ease of receiving funds.
Saving resources when searching for investors.
Trust between partners and the ability to agree on terms.
Cons:
You risk ruining your relationship with the lender.
Case: VT-metall
Find out how we reduced the cost of attracting an application by 13 times for a metalworking company in Moscow