How to find the right investors for your business

When starting out in business, seeking and securing that initial investment is a big step – and it’s a more complicated step than it seems on the surface. While finding a partner with the cash needed to get you up and running is vital, what’s even more essential is the value they can bring to your business in other ways, explains Kim Clarke, GM of Enterprise at MYOB.

An investor is the very first believer in your startup adventure, and their dedication to commit their wealth of industry knowledge and experience to your business development is crucial.

The first business I started was a small operation – just three of us. Starting in the age before “side hustles” were a thing, two of us were working to fund the three-person operation. It was not easy. Together, we built three products and managed to get one off the ground. Going it alone was scary, expensive, and our mortgages and livelihoods were at risk. Despite the stress, we did it because we believed in what we taking to market, and we believed in ourselves.

However, looking back, it was lonely. Having now run a second business and moving into the corporate world where I’m committed to helping businesses start, survive and succeed, I know how essential networks are to combat the loneliness that so many business owners experience and to grow your business idea from a belief to a success story.

Building your networks is crucial in finding the right people or organisations who believe in your vision and are willing to invest some capital towards making it a reality.

Taking the initial steps towards building those networks can often seem daunting. A few places to consider are:

Accountants – Your accountant can be a trusted partner when it comes to growing and operating your business. They are a great source of information when it comes to who is investing. If they don’t personally know angel investors, they might have other clients who have secured funding, or they might be connected to additional investors and funding channels through their own professional networks. With a primary focus of securing and sustaining your business accounts, your accountants can be a great first step on any investor-seeking journey.
Business incubators – These are co-working spaces for startups where you can get advice, mentoring and meet other budding entrepreneurs. Incubators are often set up on a local level and host networking events, meaning you can connect straight into investors in your area or interested in the same things as you.
Crowdfunding platforms – Utilising social networks these are a great way to spread the word about your business and either get donations or offer shares in your business. This year in Australia alone, businesses have raised $32 million on sites like Birchal and Equitise^[1].
Networking events – Potentially the most underutilised channel when it comes to finding investors, networking events can also be the most powerful avenue to business growth. Often hosted by industry organisations, chambers of commerce, local councils and co-working spaces, networking events are great ways to meet potential investors. They can also be a great way to connect with people who have undertaken similar business growth steps, so you can build an invaluable support network and learn from peers.
Pitch nights – Sometimes, the best solution is a simple one. Show your idea to investors, partners, and customers to get some buzz.

Looking for investors?

The key thing to remember is any step is a good step when it comes to finding an investor in your business. Central to all of the steps I’ve outlined above is the importance of building your network and putting yourself (and your business) out there. Whether engaging with your accountant or attending networking events, you’ve taken the important first step in making sure you don’t go it alone.

Running a business can be lonely – investors and the networks underpinning them can be an immediate support network. Building a relationship with your investors and taking them through your business plan can make them your biggest believers, advocates and supporters.

Odds are, any future investor you find knows what it’s like to start and grow a business. If you find the right one, they will bend over backwards to give your business its best run at success. Your first investor, that first believer, is the most important.