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Since it can be difficult to find investors, many small business owners look to close friends and family to raise at least their initial seed money. It's easier to find investors if you've gotten your business off the ground than it is if you've only got an idea. If you have a friend or family member who is interested in any significant investment, treat it as a business transaction not a gift. Put it in writing with a legal contract or investment agreement. Any social media accounts you have can be used to help you find investors. Set up business-specific pages and accounts, and encourage friends and family to connect to them and share them on their networks. Use posts not only to talk about your idea but also demonstrate the need for the product or service you want to offer. Include news and information about the neighborhood where you want your business to be located. Encourage your friends and followers to share posts about your business and help you spread the word. When you set up dedicated social media accounts for your business, help spread the word by giving people who a reason to follow along. Contests and exclusive discounts will get more people on board. For example, if you're planning to open a coffee shop, you might offer a free cup of coffee to the first 20 people who like and share a post. Many products and services lend themselves well to crowdfunding through a website such as Kickstarter or GoFundMe. Unique rewards at different levels of sponsorship can help attract micro-investors who are interested in supporting the next great idea. Crowdfunding also helps market your product or service. If you fund your project through contributions from 100 people, those are 100 people who are interested in your idea and want to see it succeed. Each of those 100 people will potentially tell their friends about your product or service.
Talk to friends and family. Drum up interest on social media. Provide incentives for likes or follows. Try crowdfunding sites.