For anyone who wants to buy a business, one of the critical questions is where to get financing from? Financing is important for just about any business that wants to make money. The good news is that there are many sources of financing. One option is to approach the bank and ask them how to start a business, and they will most likely offer some kind of business start-up loan. For those who want to buy a business franchise, there are even lenders that specialize in funding for this kind of venture, such as GE Capital Franchise Finance, among others.
Still, these options are all well and good. But what about those people who want to make money with their own business but are held back by a poor credit rating? Is there any option for them?
In fact, there are several options for those who want to know how to start a business with no capital. The most obvious course of action is to find a business partner or investor with money behind them. Of course, investors are always cautious about what they put their money into, and so anyone planning this route will need to have a sound business plan to make money (buying a franchise is always a good idea). Most investors like to let their money do the work for them, and so while they might be interested to buy a business, they certainly don’t want to do any work. This means it is possible to reach some kind of compromise, with the investor providing the necessary start-up funds, and the other party providing expertise and dedicating their time to make things happen.
Of course, this leads us to a new question. How to find an investor who wants to buy a business and make money? Unfortunately, investors do not grow on trees, and neither do they scream from the rooftops that they have money to throw away. However, finding an investor is similar to knowing how to start a business – know what to look for.
Typical investors are wealthy people, aged between 40 to 60 years old, with previous business and/or entrepreneurial success behind them. A likely investor would be someone well known in the local community for his or her businesses, professional, and known to try out new business opportunities whenever they can.
With this in mind (knowing what a typical investor is like), finding one becomes less of a challenge. Investors are often constantly on the lookout, hoping to buy a business that can increase their fortune, so they can be found easily enough through networking. This means hanging out at the places where people who make money usually like to socialize – such as trade fairs, business events, social clubs, that type of thing. Alternatively, joining community organizations is a great way to meet potential investors. Many people who know how to start a business but lack the money have found investor partners in this way.
Network, network, network. That’s the key to finding an investor to buy a business.