Starting a business, like many things in life, costs a lot of money. Unless there is a source of capital or funding to back a business, it can be difficult to get them into a financially viable position.

Investors are more like a business partner than a boss. They are either in or out when it comes to investing in your business, and the pitch of your business to an investor can be all the difference between capital or no capital for your business.

Operating as the financial backers of many start-up businesses, early-stage investors can be an invaluable source of capital for those looking to kick start their projects that are still in the market research or development categories. They usually provide “seed capital” to their invested business, which grants them enough capital to get off the ground and to a point where they are either self-sufficient or profitable, or to a point where they require additional funding to move the project on or further.

There are many different investor channels that start up businesses can approach for capital. Here is a brief list of the avenues for funding that are available that start up businesses should consider:

• Friends and family can be the easiest way to attain capital (if you have a network that can), but also be the hardest to ask money from
• LinkedIn – reaching out via the social media platform isn’t a bad way to cold-campaign investors and approach them about a business opportunity.
• Angel Investment Network – a website that allows you to browse other projects and see what’s getting invested in.
• Kickstarters can be a way to reach out to the public for funding and promote the business
• Syndicate Groups usually invest in the later stages, but are a great way to add strategic limited partnerships to the capitalisation table of your business
• Venture funds
• High Signal Investors are investors that can help your business grow, not only with capital, but with their own network or experience.

Before getting too invested in approaching how to fund you business, make sure you have a plan in place. Speak with a professional for advice on how to proceed with investment options and funding for your venture.