Grassroots Fundraising

Here are some suggestions to help you find investors for your company.

Typically you need to start with your Rolodex and a list of friends and associates. Angel investors aren't the only ones looking for good business investments, but if you want to explore that option you can consider some guidelines for Angel Investor Financing for Small Businesses.

There are also other ways to raise funding besides angel investing. These days more people are looking for alternatives to investing in the volatile stock market. Make sure you have a realistic financial analysis that shows how much money you need, how much revenue and profit the business will generate with this funding and what you will return to the investor - dividends, interest or stock.

Put the word out to your friends and colleagues about your high-return, low-risk business proposition. Approach your doctors, dentist and any other professionals. Corporate lawyers often have contacts with individuals looking to invest. If you are a member of business groups like the Rotary club, your local Chamber of Commerce or a trade association, approach them with your idea.

You should also network in the right circles where high-asset individuals might be. Join fund-raising committees for things like your local symphony, opera or cancer society. Attend fund-raising events or wine tastings to broaden your contacts. Never stop feeding the potential-investor pipeline. By being outgoing, creative and politely persistent, you'll find the right investors.

No matter where you turn for money, you'll have to show a business plan to win support. Read What Is an Investor-Ready Business Plan? for guidance in crafting a document that will get you what you need.

Get more information on other business funding and loan options for launching your new venture at AllBusiness.com.

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