Category: Different types of investments

Where you Can Find Type of Small business investors and Step for Finding

Business and investments have a relation from the very start, whenever you think of a business either running ort new one, investment is the first thing that comes to your mind. Most of the people start a business from the small level and even large and successful business we see, everyone has started their business from a small level. But some people unfortunately even don’t have enough of the money to start a business on their own and for their help the small business investors are present. These investors help business to start by investing money in it and then once the business is started they start getting the profit of their share from the business. A business even if not very great at the start will start to improve if you have a proper business plan. So before you find small business investors you must have a proper plan.

Types of small business investors

There are two types of the small business investors based upon their investment technique.

  1. The first type of small business investors is the one that gives debt investment. These are the type that gives you money is a debt and ask for the interesting outcome until all the original debt have been paid with the interest.
  2. The second type is the one with equity investment, they invest by buying a share into that business and get the regular profit of that business.

Steps to find investors

Following are some of the steps that you need to follow before you find small business investors

  1. Make a proper plan of your business because if you don’t have the plan then your business and the investor’s money all will be doomed and investors get their money out of you so you will be the only one left with no penny.
  2. Make a list of small business investors that you think will help you the way you want them too. You can make the list by looking for all types of investors you can get.
  3. Share your plan with the investor you have chosen for the small business investors list and tell him/her all about your business and why they should invest in your business. Convincing can be a tough job but if your idea appeals them you will have a win in that.

Where to find small business investors

Following are some of the places where you can find small business investors

Internet

The Internet can be the best place to find some small business investors and you can also contact them through the internet.

Business owners

Meet the small business owners in your area and by their help get the contact information of the small business investors that have been investing in their business.

Angel investors

Angel investors are the best network to find the small business investors in your area. They can also help you contact them.

Crowdfunding

Crowdfunding can help you find any type of the investors so they can easily help you find the small business investors too

What are the different types of investments

All of us know about investments and those who don’t know it very well must know that investment is any asset, any property or anything that you own which is likely to give benefit in the future. People have investments with the hope that it will generate income I the future. Investment is basically a long term plan. People in business have a lot of investments in different firms or some of them a=have all of their asset invested in only one of them. When we invest money in some business we actually become a partner of that business, now the choice is ours that either we want to be a silent partner or an active one. To make an investment you not only have to put money in a business but you can make an investment of your own and for that, you should know about the type of investments.

Types of investments

To make and investment you should know about the type of investment you are going to make and below are the type of investments to make you understand it better.

There is basically three type of investments which are further explained with examples.

Ownership investments

 

Ownership investment is one of the most important types of investments and the following examples will make you understand it better.

  • Stocks are the ownership investments which means that you own the portion of a company you invested in. It gives you a contract that makes sure you are the part-owner of the company. When you buy a share of a company it uploads record profits which make other people want to buy shares of that particular company and thus the value of your share increase it to making you get profit in case you decide to sell those shares.
  • You can also buy shares of a running business and be a silent investor so you will be able to receive your share of the profit.
  • You can also buy a real estate or any house and that would be an investment too and it is the most common type of investments. When the market value of your house increases which happens all the time with real estate you can sell it to gain profit.
  • You can also buy other stuff like Gold, gems and famous painting as an investment and can sell it as their value increases when you want to extract your profit or when you get the highest bidder for that object.

Lending Investments

 

Lending investment is the less dangerous type as compared to the ownership in all type of investments. Example of this type of investments are following

  • Bond is less risky than being a stock shareholder because in stock if company go through a loss you go through with it too but in the bond, you keep receiving your profit which is less as compared t in stock.

Having a saving account is also a type of investment in which you loan money to the bank and your money is safe in this case.

Cash equivalents

 

This is the only type among all type of investments which is as good as cash and you can convert is back to the cash.

  • Money market funds are cash equivalent type of investments but in this case, the profit could be as less as 1% or 2%. You can easily draw the cash out of it.