[vc_row][vc_column][vc_column_text]The dream of almost every small business owner is to see their venture grow. For this, it is necessary to have capital. You may have many good ideas, but without money it is very difficult to realize them. Finding investments for small businesses is not an easy task, but neither is it impossible. It is possible to use diverse solutions, such as credit lines, collective financing and companies that foster entrepreneurship.
First and foremost, one must be prepared to listen to negative answers — perhaps, more than you would like — but with persistence and planning you can attract investors to your business. How? Find out below!
Start with a business plan
Before you look for an investment, you need to know exactly how much you need. When you have a well-structured business plan for your company, you know how much financial assistance you need and what it will be used for.
This powerful management tool will also be the guide for your company to achieve the objectives and will serve as a convincing tool for you to raise capital. By presenting a well-detailed business plan, your potential investors will be convinced that it is a professionally managed company and not just an amateur.
Look for angel investors
Have you ever heard about an angel investor? Generally, it is a high-income individual who provides financial support to startups, small businesses or entrepreneurs.
Often, angel investors can be found among family members, friends or in your network of contacts. There are also several non-profit organizations that bring together this type of investor to help companies and entrepreneurs get ideas off the paper or give a continuous injection of resources to help small businesses grow.
Consider raising funds with BNDES
The Brazilian Development Bank (BNDES for its acronym in Brazilian Portuguese) is another good alternative for those seeking investments for small businesses. Included in the scope of the institution are the granting of credits aimed at:
- infrastructure;
- working capital;
- purchase of machinery, equipment and vehicles;
- expansion and reform of companies.
Among the advantages for companies, the lowest interest rates and a grace period of two years to start payments stand out.
Review fintechs offers
Digital transformation has also hit the financial market. In recent years, many digital financials have emerged, also known as fintechs.
These companies provide various financial services, all via the internet and are a good investment alternative for small businesses. Since these institutions don’t have physical agencies, their fixed costs turn out to be much smaller than those of the big banks, and this is reflected in the cost of their products.
Generally, fintechs offer interest-bearing loans far below those proposed by traditional institutions, which can be very interesting for small businesses.
Consider equity crowdfunding
Equity crowdfunding is a type of collective investment financing. It works as follows: People come together to invest in a company and in return get a stake in the business.
It is a relatively new format in Brazil. The first platform was regulated by the Securities and Exchange Commission of Brazil (CVM for its acronym in Brazilian Portuguese) only from 2017. Despite this, it shows a way out with quite positive prospects and is gaining strength every year.
This is a great alternative for those who want to raise small business investments and would not want to contract a debt.
Some platforms that your company can use include: Broota, EqSeed, EuSócio and Biva.
Professional social networks
Another means to get investments for small businesses are social networks. In addition to LinkedIn, which is still a great place to look for investors, there are numerous professional social networks that can help you connect with all types of investors in all business segments.
Many of these professional social networks even connect you with investors from other countries who wish to participate in the global business environment and generally take your product or service to their part of the world.
Some professional social networks sites to consider for connections with investors include EFactor and Xing.
Do not give up on financial control
Now you know some ways to get investments for small businesses. However, as important as capturing resources is knowing how to apply them in your business. This may involve financial management and marketing consultancies, and the use of management tools such as cash flow.
The Brazilian Micro and Small Business Support Service (Sebrae for its acronym in Brazilian Portuguese) offer a variety of small business consulting, ranging from financial management to marketing actions and market analysis, which can help boost your business.
In addition to the aforementioned options, you can look for companies committed to fostering entrepreneurship. These organizations can help your small business in different areas such as marketing, technology and innovation, etc.
Now that you know about some ways to get investments for small businesses, how about the digital transformation in companies? Click here and read![/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][ultimate_icons][/ultimate_icons][/vc_column][/vc_row]
