Where to find investors?

35 replies
Hello to you guys!

I am a graphic designer and for my last 2 and half years i worked as freelancer and doing some good money with it.

But now i have possibilities to expand my work and take it to another level with lots of customers. That's why i am interested to start a local business here where i will create a company, hire 2-3 graphic designers and 1 developer and start working on projects that i already have.

My major problem is that for this whole new level i have to invest about $10k. And quiet francly for me at this moment $10k is a long way to start making design for those money.

So i am interested to find a investor or multiple investors that will be interested to help me with that amount of money to start my business, and i will give mack to him somewhere around $15k in 3 months.

So, what do you think? Do you know someone(you, one of your friends, one of warriors, some one else) that could be interested in making money just by borrowing money?
#find #investors
  • Profile picture of the author misterkailo
    this requires major trust, and most likely there's a big possibility you can't pay $15k in 3 months
    {{ DiscussionBoard.errors[8516230].message }}
    • Profile picture of the author cotletcristian
      Originally Posted by misterkailo View Post

      this requires major trust, and most likely there's a big possibility you can't pay $15k in 3 months
      As in all businesses, there have to be some risks involved. This is basicly the idea of doing a business: "Risk, risk until you win".

      It's obvious that it requires hours of conculting with investor, and also hours of getting to know each other...

      But my point is that i know lots of websites that help US citizens to borrow money for their businesses or for their product ideas from lots of investors and i am thinking that there could be a possibility also for me to find the right guy that will understand my eager to start this business and make some real money. And obvious make also his interest back.

      Do you guys know someone who can give it a shot?
      {{ DiscussionBoard.errors[8516252].message }}
  • Profile picture of the author joseph7384
    What are your gross annual sales so far for 2013.
    Signature

    {{ DiscussionBoard.errors[8516332].message }}
    • Profile picture of the author cotletcristian
      Originally Posted by joseph7384 View Post

      What are your gross annual sales so far for 2013.
      Only for doing graphic design at a 30% of my total capacity, i managed to earn over $6k(can provide proof for that). This is why because in the meantime i was doing also some other stuff and also didn't get my full interest to develop too much.

      But now i have the opportunity to make $6k per month with some other graphic designers that i will have to hire since there are lots of customers that needs graphic design.

      I have all the business model wrote down, i have all the estimations, all the plans maded but one thing is missing: the funds to start scaling this business.
      {{ DiscussionBoard.errors[8516373].message }}
  • Profile picture of the author sovereignn
    Have you thought about trying a bank?
    {{ DiscussionBoard.errors[8516360].message }}
    • Profile picture of the author cotletcristian
      Originally Posted by sovereignn View Post

      Have you thought about trying a bank?
      Yes i thought about that but in my country i have to be an employee to proove that i can get the money back to the bank. But since i am not a employee, i am a freelancer, i can't go with the bank, cause they don't recognise PayPal income.
      {{ DiscussionBoard.errors[8516378].message }}
      • Profile picture of the author AffiliateWaves
        Originally Posted by cotletcristian View Post

        Yes i thought about that but in my country i have to be an employee to prove that i can get the money back to the bank. But since i am not a employee, i am a freelancer, i can't go with the bank, cause they don't recognise PayPal income.
        Banks are for employed persons not for freelancers like us.My view is keep your work small scale at this level.

        If you really have some good projects you can outsource them to fellow designers rather than hiring them .It will save good money for you and you can use saved money later to start your setup .You can also ask your client if they are interested in investing in your venture .

        Finding an investor online is somewhat risky ,i will suggest you to go round way not straight at this time
        Signature

        Need high Quality Expired domains click here to see now

        {{ DiscussionBoard.errors[8519761].message }}
      • Profile picture of the author sovereignn
        Originally Posted by cotletcristian View Post

        Yes i thought about that but in my country i have to be an employee to proove that i can get the money back to the bank. But since i am not a employee, i am a freelancer, i can't go with the bank, cause they don't recognise PayPal income.
        Paypal sends you tax forms though.. They have to accept legal documents don't they?

        I'm not familiar with your country though so I could just be completely wrong
        {{ DiscussionBoard.errors[8520896].message }}
  • Profile picture of the author Jack Gordon
    It doesn't really work like that. You won't easily find people with money looking to fund other people with a desire.

    In order to even be considered for funding from an investor you'll need a solid plan, a track record of sales and a good percentage of the investment that is required. In other words, you'll need to be able to show exactly how you will pay them back and have some skin in the game yourself.

    The way you get there is by bootstrapping it for a while, growing organically until the demand is there to leverage into a loan from an investor who sees it as a no-brainer proposition.
    {{ DiscussionBoard.errors[8516381].message }}
    • Profile picture of the author cotletcristian
      Originally Posted by Jack Gordon View Post

      It doesn't really work like that. You won't easily find people with money looking to fund other people with a desire.

      In order to even be considered for funding from an investor you'll need a solid plan, a track record of sales and a good percentage of the investment that is required. In other words, you'll need to be able to show exactly how you will pay them back and have some skin in the game yourself.

      The way you get there is by bootstrapping it for a while, growing organically until the demand is there to leverage into a loan from an investor who sees it as a no-brainer proposition.
      As i mentioned already, i have all the details and proofs about what money i maded till now. To the right investor will be revealed...

      Also, i have the business plan done from day 1 to day 90.

      Also i am thinking now at a backup plan if let's say in those 90 days something will go wrong and the results won't be the one sconted.

      So, to that investor i will show them all, we will discuss and then eventually start working.

      I am not so fool to think that i will find investors at every step... I am just interested to know where to find guys that are interested to make more money using their "non-used" money.
      {{ DiscussionBoard.errors[8516406].message }}
  • Profile picture of the author Kevin Williams
    Have you thought about a small business loan/grant? I've had friends get them in the last few years, and they all had very little to show except business plans, estimations, and dedication.

    Worth a shot if you haven't considered it...
    {{ DiscussionBoard.errors[8516438].message }}
    • Profile picture of the author cotletcristian
      Originally Posted by Kevin Williams View Post

      Have you thought about a small business loan/grant? I've had friends get them in the last few years, and they all had very little to show except business plans, estimations, and dedication.

      Worth a shot if you haven't considered it...
      I don't think i got your point...

      You mean that i should of thought ask for low money than $5k as a loan?
      {{ DiscussionBoard.errors[8516445].message }}
  • Profile picture of the author Kevin Williams
    I meant government grants, thought I specified that, oops. If you live in the U.S.:

    Loans & Grants | SBA.gov
    {{ DiscussionBoard.errors[8516474].message }}
  • Profile picture of the author ronrule
    You are looking for way too little to attract an investor, if you can't scrape $15k together you won't be taken seriously by anyone in the VC space. Look to friends and family, a bank loan, or other credit line.
    Signature
    {{ DiscussionBoard.errors[8516476].message }}
    • Profile picture of the author cotletcristian
      Originally Posted by Kevin Williams View Post

      I meant government grants, thought I specified that, oops. If you live in the U.S.:

      Loans & Grants | SBA.gov
      Ohh ok, but i don't live in US... I am locate in Romania, Europe.(The land of Dracula and Transylvania :p )

      Originally Posted by ronrule View Post

      You are looking for way too little to attract an investor, if you can't scrape $15k together you won't be taken seriously by anyone in the VC space. Look to friends and family, a bank loan, or other credit line.
      What do you mean by "you can't scrape $15k together"?
      This business is going to make $6k+ per month as profit with 3 employees and from where i am standing that's some money... there will be probably an interesting field for an investor to go even for more than 3 employees investment...
      {{ DiscussionBoard.errors[8516502].message }}
      • Profile picture of the author Kevin Williams
        If you're sure the business is going to make that much money, you may be able to find artists willing to work on commission or be paid as you make money.

        I say may, but artists are truly one of the only groups that might do this. Especially if you can show some estimates of why you know you'll make that much...
        {{ DiscussionBoard.errors[8516508].message }}
        • Profile picture of the author cotletcristian
          Originally Posted by Kevin Williams View Post

          If you're sure the business is going to make that much money, you may be able to find artists willing to work on commission or be paid as you make money.

          I say may, but artists are truly one of the only groups that might do this. Especially if you can show some estimates of why you know you'll make that much...
          I know that but those money are not only for salaries... They are for software licences mostly, for getting the paper work done, prepare the physic place and do all the logistics before starting... If it was only for salaries i would of start this long ago...
          {{ DiscussionBoard.errors[8516531].message }}
      • Profile picture of the author ronrule
        Originally Posted by cotletcristian View Post

        What do you mean by "you can't scrape $15k together"?
        This business is going to make $6k+ per month as profit with 3 employees and from where i am standing that's some money... there will be probably an interesting field for an investor to go even for more than 3 employees investment...
        You're talking about very small numbers here, it's not the type of deal any accredited investor would be interested in. $15K is something you fund out of pocket by saving your own money or accessing credit lines, you won't be attractive to any serious investor until you cross the $500k threshold. There are angel groups that will fund startups that are in the $50k-$100k range, but those are generally looking for product-driven companies, not services. Investors seek to fund companies that have an asset that can be liquidated to protect the investment - a couple of guys offering web services have no value.

        You're better off seeking a private loan with fixed terms, not a percentage of revenue.
        Signature
        {{ DiscussionBoard.errors[8516538].message }}
        • Profile picture of the author cotletcristian
          Originally Posted by ronrule View Post

          You're talking about very small numbers here, it's not the type of deal any accredited investor would be interested in. $15K is something you fund out of pocket by saving your own money or accessing credit lines, you won't be attractive to any serious investor until you cross the $500k threshold. There are angel groups that will fund startups that are in the $50k-$100k range, but those are generally looking for product-driven companies, not services. Investors seek to fund companies that have an asset that can be liquidated to protect the investment - a couple of guys offering web services have no value.

          You're better off seeking a private loan with fixed terms, not a percentage of revenue.
          I see it. Yes it's normal and quiet logical what you said but don't think that since i can't get to accredited investors, don't think that i meant to get in contact with them. But only find guys like you that sees from this and opportunity and in the same time, help a business.

          Don't think that the second part is going to motivate you but i'm sure that money is going to motivate someone. At least i hope...

          Yes, as i said there are fixed terms, not a percentage of revenue, its a percentage from investment.

          So, till now, i got i think more like not strait forward solutions... Is there any way that you guys actually know guys or places where i can get to those guys that are willing to invest small money such as $10k, into a graphic business? Hope to find a solution here...
          {{ DiscussionBoard.errors[8516593].message }}
  • Profile picture of the author clever7
    There are various websites that can find investors for you, but you have to pay something for that. Look for them in a search engine.

    You should have in mind that an investor will desire to make more money than you with your idea, since he/she is paying for everything and taking most risks. You may receive only a small percentage in the end.

    {{ DiscussionBoard.errors[8516503].message }}
    • Profile picture of the author cotletcristian
      Originally Posted by clever7 View Post

      There are various websites that can find investors for you, but you have to pay something for that. Look for them in a search engine.

      You should have in mind that an investor will desire to make more money than you with your idea, since he/she is paying for everything and taking most risks. You may receive only a small percentage in the end.
      My loan will be $10k and for a profit of 16.6% per month, my investor is going to get about $15k in 3 months. I think that is quiet reasonable for a short term investment.

      I looked on Google but there are more like for US citizens or Europe guys that have euro as their currency. So i don't fit in there
      {{ DiscussionBoard.errors[8516518].message }}
  • Profile picture of the author timpears
    Advertise for investors on Craigslist.org. there was a fellow who did a WSO a few months ago to a year ago on just this type of thing. Raising small amounts of investment money by going to Craigslist.org and putting in a post looking for investment/venture molney.
    Signature

    Tim Pears

    {{ DiscussionBoard.errors[8516605].message }}
  • Profile picture of the author cotletcristian
    Found some great info from where to start, dnovacek. Thanks for your info!

    Does anyone have at least a small interest to support me in this business?(any amount?)
    {{ DiscussionBoard.errors[8516985].message }}
  • Profile picture of the author ronrule
    So this thread has gone from "where can I find investors" to "can someone give me money"?

    Dude you are in the wrong place... I mean, that would be like going to a coffee shop and asking the owner to give you money to open one across the street.
    Signature
    {{ DiscussionBoard.errors[8518819].message }}
  • Profile picture of the author kylenelson24
    One way to get your name out there for serious investors is http://angel.co I recommend it 100%
    Signature

    All Services Provided by
    Kyle Nelson
    [/CENTER]

    {{ DiscussionBoard.errors[8519777].message }}
  • Profile picture of the author J. P.
    I don't know what country you're in, check to see if there are crowdfunding opportunities in your country. Another possibility is to contact some of your old clients to see if they might be interested in investing. You've already proven yourself to them, perhaps someone will help you take it to the next level.
    Signature

    I'm available for Virtual Assistant work. Article Writing, Blog Comments, your basic grunt work. PM me for starters and let's talk.

    {{ DiscussionBoard.errors[8520504].message }}
  • Profile picture of the author CyberAlien
    Why don't you use the "application" being advertised in your signature that will earn you "$2,500/month"? It would only take you 4 months to reach $10k...
    {{ DiscussionBoard.errors[8520637].message }}
  • Profile picture of the author AvusBlue
    Here is a really nice thread about crowdfunding. I know it is not investors, but you will get the capital.
    Crowd Funding
    {{ DiscussionBoard.errors[8520716].message }}
  • Profile picture of the author lunarninja
    95% chance no one will fund you just to be honest with you. Web design is not a scalable business and real investors are not looking to make 15k in three months they are more in the ball park of 15k every month etc.

    Plus you need a solid lead generation sales plan in place. There are many self employed design groups in Warrior forum and they all struggle with leads.
    Signature

    Looking FOR A TRUSTED HOSTING Provider? 12+ Years over 150,000+ Happy Customers! 1(877) 586-2772 Ex. 2441 http://www.lpwebhosting.com/

    {{ DiscussionBoard.errors[8520733].message }}
  • Profile picture of the author Burton Lancaster
    The answer from 0 to 100k is always bootstrapping, otherwise you will bump your head numb against all the brick walls you hit trying to get an angel (outside of family) at that level. Trust me, you can do it with what you have if you are resourceful enough. If you don't have the resources you need, find other partners on your level to work with that do.
    {{ DiscussionBoard.errors[8520913].message }}
    • Profile picture of the author Fredbou
      Why not take a different angle? Instead of asking for money, make graphic designers partners instead of employees?

      Quite honestly, Romania has a poor reputation as far as scams and Internet fraud go.

      As a developer I could be interested in a partnership, but I wouldn't put money in without a high degree of security and I seriously doubt that many people would.

      The WWW now has a huge record of collapsed businesses and to attract investment dollars would take something akin to FaceBook, Google, Twitter, for people to put money in. Twitter is going public and investors stand to make a killing by purchasing shares, so why put money into a startup unknown?
      Signature

      {{ DiscussionBoard.errors[8521808].message }}

Trending Topics