Investors

The next group is collectively known as investors. Since you do not know them personally, there is no question of you asking them for a favor.

There are 2 groups of investors. In the first group, investors are people who are neither family, friends or relatives. They could be referred to you from friends or members of your family or relatives or business associates. These investors may or may not be experienced in making investments in startups. What they have is money in which they are willing to invest in a venture perceived to be sound.

The second group is angel investors. Angel investors specialize in investing in startups like yours. Since angel investors typically receive proposals day in and day out, entrepreneurs should strive to make their business plan stand out.  It is not uncommon for entrepreneurs to feel their business plan being torn to bits by their questions and comments. However it is good to receive critical comments regarding your ideas. Use the feedback to improve and strengthen the business model and projections.

If you are able to garner investments from investors, its a good sign. You may be able to use that as an endorsement of your business idea to solicit additional investments. On the other hand, if you fail to do so, its not the end of the world. Many giants in S&P 500 today were unable to attract angel funding during the early stages of their development.

 

Invest and Launch

Capital Required

Funds from Yourself and Family

Funds from Friends and Relatives

Investors

Loans

Crowdfunding