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    4 Replies Latest reply on Jan 9, 2012 9:20 AM by Moderator_JoleK

    How does one go about finding investors?

    Beth Newbie

      Hello all!


      I'm new here and my name is Beth. I co-own (along with my husband) a small handmade confections company in Los Angeles. We have been in business almost three years online. We started out slowly but for the last year and half we have had to turn away business and features because we can't keep up with demand. There is only the two of and we have to rent a shared kitchen which makes it difficult to hand make all that we're capable of.


      We have a commercial realestate agent looking for a spot and we have explored the SBA and traditional loan venues. What I was wondering is, how difficult is it to find "Angel" investors.


      We have a solid business plan as we've been in business for years.

      We support oursleves solely with our business, neither one of us works outside of our business.

      Our idea for our shop makes it a destination. We have an idea that no other sweet shop has ever introduced.

      We have a solid amount of press. We do, as I said have to turn some offers down because we can't keep up but we feel that we have a solid branding and we have amazing word of mouth advertisement.


      Any information would be really helpful. We know it may sound odd that we have just begun looking for retail options but we felt it was important to make sure we knew what it was like running a business before we tried to open an actual storefront.


      Thanks in advance!

        • Re: How does one go about finding investors?
          Erik Salmon Scout

          Hi Beth,


          First thing most angel investor firms do not respond to an unsolicited proposal. You need a warm referral from an accountant, layer, investment and commercial bankers, or business school professors for each investment firm you want to present your business plan to. Then you will have to be prepared to give up some or all of the control of your company.


          I would also recommend you read How To Raise Capital by Jeffry A. Timmons if this is the route you plan on taking. There is much to prepare for when dealing with investor firms.


          Erik Salmon, CCFC

          • Re: How does one go about finding investors?
            Clear Presence Media Scout

            It is a very tight market for venture capital, and it is mostly going to high tech startups with proven growth models. For a handmade confections business, I would think its going to be tough to attract an angel investor. A loan may be a better option, especially since with your proven track record you could probably get some good rates.


            Start hiring employees to wear the different hats of your business. You dont want you and your wife wearing all the hates (marketing, web development & management, inventory manufacturing, order fulfilment, customer service, business development). Start hiring people to wear these hates for you. Hire a guy to take charge of order fulfilment and customer service, and a guy to take care of online marketing and web maintenence/dev...All the sudden, you and your wife have all the time in the world to focus on manufacturing and development.


            Hope this helps!

            Clear Presence Media - Online Marketing Management & Consulting

            • Re: How does one go about finding investors?
              Bridge Navigator

              Debt is always cheaper than equity.  If your business has been running a few years, an SBA guarnteed loan is probably your best option.  You did not mention how much money you are looking for - that could make a difference in your financing options.



              • Re: How does one go about finding investors?

                Cleary, Beth, you are on the right path with the responses you're getting to your questions!

                How are you coming along on your search ? Let us know!