ForumsStarting a Business

What have you done to date in regards to seeking investment? Do you have a solid business plan? Finding investors is based on several things. If you need small amounts under $1M - then look for angels or angel groups or private local investors. If more, then look for Venture Capital.

Most investors look for 30% annualized returns or more and expect to exit within 5 to 7 years after investment. Thus, you must be able to demonstrate this and provide a method of exit for your investors. Angel investors like to invest in industries that they are familar with. VCs tend to also have narrowly defined industries or spaces that they invest in.

Additionally, while angel tend to get into deals earlier than VC - both like to see some type of track record before investing. This could be revenue, or customers, or contracts in hand.

Most investors don't invest in products or services. They invest in people - management teams - and their ability to execute. If you have the best idea in the world but cannot execute it - it is only an idea.

Both VCs and angels like to get referrals from their gatekeepers. Gatekeepers are people that the investor works with - they could be CPAs, Lawyers, Government Officials, etc - could also be other successful business owners in their community or even other entrepreneurs that the investor has previously invested in. As these are people that the investor trusts, then they will listen to their recommendation.

What I am trying to say here is that your best way into investors of any type is through an introduction from someone they trust and respect. So, instead of going directly after the investor - try to find their gatekeeps and win them over first.

You can start by visiting your local chamber of commerce and by attending networking events in your area. Start talking to people - don't pitch them - but ask them questions and listen. When people feel confortable, they will talk. When the time comes, they will ask you want you do. This is the time to state what you do and what you are seeking - but don't pitch to them. If they know of an investor, let them bring up the subject. Then, you can ask them for an introduction.

Hope this helps.

Business Money Today - www.businessmoneytoday.com-

It seems to be a very saturated, high volume - low cost market you plan to enter. How does your product and services compare against some of the big players such as GoDaddy?

Security security security, and cheaper than everybody else. That will push your business faster than you expect. Is your security better than the competition??? How do your prices compare in lets say a years time...how much can they save using your service??