Small businesses and start-ups contribute greatly to the economy of a nation. Hence, this makes them attractive to investors.

The growth of a business, most times, depends on the contribution of investors. It is important to start a business, however, finding investors is just as necessary. Rightly so, there are many investment opportunities spread across Nigeria and the world, also available online and offline for small businesses.

However, how does a small business find and sustain a good investment?

Small businesses face the challenge of accessing funds and capital despite the fact that there are organisations and individuals who are willing to invest in resourceful enterprises. Examples of investment organisations available to start-ups in Nigeria include She Leads Africa, Lagos Angel Network (LAN), GreenTree Investment Company. There are also social innovation funds offered by organisations such as CCHub, Tony Elumelu Foundation, African Women’s Development Fund, and Angel Investors.

A person who has money and resources enough to invest in a business idea in exchange for ownership equity is referred to as an Angel Investor. This could be family, friends and even customers.

To attract and secure potential investment from organisations and angel investors, a small business may consider the following:

• Do a research about investments for small businesses, and understand why you need one at such a time.
• Have an enviable and organised business structure. Let this be well documented.
• Write out your short and long term goals. Report progress periodically.
• Make sure your numbers add up. Your financial records are important.
• Create a list of investors and connections you would like for your business.
• Identify organisations who are potentially interested in your business and the products/services you offer.
• Brand your business to appeal to prospective investors.
• Have a proposal at hand. Include all relevant information about your business, state the role of investors distinctly, and what your business is willing to offer.
• Make sure to have complete legal documents, e.g certificate of incorporation, non-disclosure agreement, investors’ right agreement, etc.

Build up your enterprise to be worthy of the funds of investors. Also, be careful to choose the right investors. Understand how much they are bringing to your company, and what they expect in return.

Would you invest in your company?