Might be best to plan an exit route (how would the investor get his capital back in a few years time?
An equity investor will want a large chunk of equity and some management control, at least I would!
The first thing is to focus on a niche. You need to make sure that you never use the phrase "into everything" because it does not show focus.
When I was younger I too had my hand in a little bit of everything (ice cream trucks, limo business, small appliance store, DJ business, part owner of a bar, car stereo shop, trucking/shipping, real estate.) I learned when talking to investors to not go into everything, because they thought I was all over the place (the truth was that my first businesses I worked my tail off for and then later many of my businesses were partnerships that I helped to finance and became a part/ silent owner in)
But back to you.
Yes you can find investors. I started mowing lawns when I was in elementary school, my first customer was an older man, my next door neighbor. I mowed his lawn till after I graduated college. During high school, I talked to him a lot because I was usually outside hiding from my parents as I smoked and he was doing the same from his wife. He was my first investor, I mentioned that I wanted an ice cream truck and showed him some numbers that I had figured would be a return on investment, I was not expecting him to invest, but he did. He became my first business partner.
That old man taught me a lot, he had been in the irrigation and sprinkler business for 35 years before he sold his company. I learned accounting (on paper,) I learned how to pay my taxes, I learned how to negotiate with suppliers. I owe a whole lot more to him than just the loan, he taught me how to run a business. The week before he was diagnosed with cancer, he was out selling ice cream at our local baseball complex, crunching numbers in his down time and making our business better. If you can, find a business partner who maybe doesnt need the money, has some experience in business, and would act as a mentor toward you, then you already have entrepreneurship 1/2 way whooped.
Some lessons I learned the hard way:
1. dont go into something that YOU are the product - I did this with my DJ service. Yes I could make a ton of money doing weddings, and it was actually pretty easy. The problem is that when you meet with a client to book the wedding (or gig) they want YOU to play it. Also it is better to have a business that can provide service at certain times (people only book DJ's weekends.)
2. certain business sectors are bad -- think bars and resturants. A) there is a low barrier of entry (any idiot can open one as long as they have the money) B) the market is saturated and competes for a fixed number of customers in a zero sum game. C) because of A&B there is low margin of returns as businesses fight to drive prices down.
3. Find something that makes money whether you show up to work or not. Find something that runs smooth like clockwork and that you are able to hire employees to run. Find something where you do not have much or any competition because you have special education/ licensure/ supplier/ franchise or territory agreement.
You are looking for a "Start-up IPO". IPO stands for initial public offering (going public with a business plan and asking for investors.). Your only option is to go to an "Investment Banker" and pitch him your business plan. If the banker thinks it's a good concept they will handle getting investors for you. From what it sounds like you are miles away from starting a business. You gotta have one heck of a business plan to even talk to an investment banker. And as far as saving your own money to start a business in the fields you listed, how does about $10 mill sound to you to get things started. Do you have a business degree? How dedicated are you? They will laugh you out the bank if you don't come correct!
You have to prepare a detailed business plan and try to sell your ideas to anyone you come in contact with. The chances that a rich investor will seek you out and offer money is almost impossible. If you have good ideas, your family and friends are your best chance for investors. Good Luck
You obviously need a bit of advice.
When you get investor money you are giving away FAR more than a bank would charge.
Example you borrow 50,000 from a bank you pay back 50,000 plus interest.
You get an investment of 50,000 You give away a % of your business for essentially EVER. which in the long term could be FAR MORE than the bank loan would ever be.
Reasons to use investors is - cant get a bank loan / need some of their skills. Investors should be considered AFTER a bank application NOT before it.
Check around for a Kickstarter program... as in crowd funding. You do the proposal, raise the money, and at the end of the program period, you pay the people back their money + interest.
I'm a young guy with a business mind I'm into everything from retail stores to record labels to restaurants to management agencies. Although I'd rather just save my own money to start a new business I've heard that you can sometimes get people to invest which to me sounds a lot easier than going to a bank for a loan.
I say that I'd rather use my own money but that's not always easy to do and it takes time to save. So if I were to go with an investor where do I find them and how should I approach them?
