How to Work with Investors as a Startup Business Owner

Startups often have difficulty finding the right investor. If you aren’t sure where to start, you aren’t alone. Here are some tips on dealing with investors and finding the right one.


Find the Right Investors


Not all investors are good for all business startups. You need to look at your business plan, your budget and any other documents that would dictate your financial needs. This will help you to communicate with investors about what you want. Also, it tells investors what risks they would be taking for your company and what they might gain.


In addition, you need to find out how much control you want. Some investors will want to have a say in your affairs. If you don’t want this, then you need to find someone who is willing to let you manage your company solely. Now, on the chance that your investor is a business expert, you may benefit from his or her advice and management skills.


Attract Your Investors


Every business has advantages that will attract investors. It’s up to you to decide which benefits you want to offer yours. If you are a corporation, consider offering voting shares. If you have a partnership, you may consider sharing control in certain areas or allotting some financial control to your investor.


Pay Attention to More Than Financials


Financials are important. There is no way around that. However, don’t focus solely on the money. Find out how much the investor knows about your business; find out his or her experience level and what startups he or she has worked with in the past. You want an investor that shows excitement towards your company. Experienced investors bring more to the table than money.


Be Wary of Incompatible Investors


Make sure that your investor is compatible with you. You want an investor that can help you strategize and will be there for you when it comes to business-related issues. In addition to someone that helps, you don’t want an investor that abuses power. An investor should not force you to fire employees or tear down your ideas. Watch out for anyone who might want to control you or your business. No one who abuses power is worth it.


As a new business, it can be difficult to find investors. You don’t always know where to look or how to find the right one. With these tips, you should have some sense of how to deal with investors. Make sure to find the right one, someone compatible who will care about your business.

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