Every business starts out as a small, independent operation. Sometimes people use their own money to open the business, and sometimes they seek investors. Since your new business will not start out with global appeal, it’s good to know how to attract local investors. Why local? Those people really know you. People just don’t fully trust an internet marketing campaign for something or someone they’ve never met face to face.
One of the most important ways to start acquiring private stock holders is to get involved in your community. Think about joining local service organizations. Clubs like the Lions or Rotary are typically populated with local business people. These need to be a part of your social and business life. As you get to know the right people, talk to them about your idea. Ask if they think it’s something that could be financed with private stocks. Ask them who would be good investors to approach. They may express interest themselves. If they refer you to someone else, ask if you can use them as a reference.
Keep your personal integrity high. If people don’t like you, they won’t back you financially. Investors want to know their money is going to make them a profit. They want to know you won’t do anything stupid to hurt their stocks. No matter what anyone says, business is a people to people concept. Customers buy from people more than they buy from companies. Sure. Walmart is impersonal, but you’re a small business owner. You won’t be opening the next Walmart. Therefore, make sure you feel as good about your investors as you want them to feel about you. Be clear on your expectations and on your commitments. Work hard. Do everything you can to prove yourself and gain more investors.