... find a private investor for a company? I mean obviously I could hit up mom and dad, but I'm thinking on the grander scale. Kinda a loaded question but I figured since I'm researching this everywhere else - why not ask here too.

It's my understanding that there are actually groups of people who invest in start-ups. I am not 100% sure how to find these people but I will ask someone who does know.

Look for a brokerage firm. They should be able to point you in the right direction, or they will get the info on what you are trying to pitch and generate excitement with investers who are looking for that sort of thing. The only down side is that they won't share the info with other firms. You will more than likely have to pitch mutilple firms. It's been a while since I've looked in to that, but if memory serves this is the path.

Depending on the buisness in question it's actually possible to get the govt to give you a grant for start up.

Fandros

Depending on the buisness in question it's actually possible to get the govt to give you a grant for start up.

Fandros

My first thought also.....but thinking more along the lines of private foundations. My first suggestion to anyone wanting to start up something is to take a basic course in Grant Writing; this will help prepare you for pitching your proposed company to investors in an organized and useful (to the investor) manner. I took such a course back in '75, and still use many of the basics today.

Look into some of the foundations that have been involved in areas similar to the focus of your business, and if they are not seen as potential investors they still may be able to provide connections to further your search.

It all depends on what type of business your starting.

A few things to seriously consider and do:

Get yourself a good lawyer.

When you bring in investment dollars you are selling a percentage of your idea, you now have someone to answer to. That is not always the greatest thing to do.

That makes that person your business partner and there are a ton of potentials there, potentials for good things and potentials for huge headaches.

Remember the first thing an investor is going to look for is a return on their investment. Their not going to be receptive that you would use their money to pay your salary.

Although one of your motivations are probably money, the motivations of the investor are ultimately different than the motivations of the visionary. The investors is purely for money.

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If your looking for startup capital for equipment go out and lease the equipment or rent it on a job-job basis. If your business tanks you can walk away from the leases, file bankruptcy and start over, if there is an investor involved and things tank you could be in for the legal fight of your life that a bankruptcy might not offer protection from.

Once in your own business be prepared to work your ass off, many 18-20+ hour days 7 days a week and then, in the beginning, theres always the neat choice of "I have 10 dollars to my name, should I buy food with it or cigarettes because I'm stressed"

I built my company with no outside capital, it aint easy. But I've also started 2 other companies with investment capital. My honest assesment is, do it without, you'll have only yourself to answer to, thats much easier.

What Rover said.

And check your local chamber of commerce... Get involved there and you'll find plenty of old rich people eager to spend some money... and those people generally have access to networks of investors.

My own personal business I have been doing just that - renting the audio package per job and putting a percentage away to buy my own mixer and microphones. However recently a few friends put together a big idea that we can't quite fund on our own ...

I guess my first step is to finish my research about the market and then look for investors, but you are right I have to be careful about them muscling into the "vision".

You'll also see ads for this type of thing in the newspaper "business for sale" section and your city's Craigslist.

Look into placing an ad; can't hurt. You can always turn everyone down.

Depending on the buisness in question it's actually possible to get the govt to give you a grant for start up.

Fandros

There's that Lesko guy that I see on TV that has that book, about all the grants the Government has for insanely crazy things.
http://www.governmentgrant.com/
Maybe there's something in there?

Well the person I was hoping to answer this question didn't give me a straight answer. So far, I think the advice that Rover has given is the best.

This group is the owner of my company. Give them a call.

http://www.klinehawkes.com/

Also, if you do as Kelraz and Rover suggest you will need extensive knowledge of 1099 tax law. If you can outsmart the 1099 laws you can make a fortune as an entrepeneur. If you don't know what 1099 is, then the first person you want to hire is someone who does.

sba.gov is a good place to start.

Also, as far as private investors, all they care about is ROI (return on investment), they want to know how fast they will recoup their cash and what percentages will they get. Figure that part out first.

Most small buisnesses die within 3 years, and most investors will want to see a 5 year plan including percautions for cash flow issues and things of that sort.

Lastly, best advice i can give, speaking i have done it, expect 50 NO's before even getting worried about if your idea is good enough. Get passed that then worry, the people who ended up giving me money actually told me no 3 times.