Search and rescue
Looking for an investor to fund your bright business idea? Here are some options

WHEN RICHARD ROSS was trying to get his business off the ground, he knew he needed to find other sources of capital besides himself. “I had given all the money I could into it. I needed someone else’s money to finish it off,” says Ross, who now owns and operates Sunshine Renewable Energy in Dartmouth, Nova Scotia.

But where can you find these investors? John Beaton, senior manager of entrepreneurship development with the Centre for Entrepreneurship Education and Development in Halifax, says that’s a common problem for first-time business owners. Yet there are avenues where entrepreneurs can unearth the people to provide the financing to turn a business dream into a reality.

Networking and competitions
Events that showcase novel startup ideas like Nova Scotia’s I-3 Technology Competition or entrepreneur networking conferences like Mashup Weekend attract investors like pollen attracts bees. If you think you’ve got a great business idea, then you need to get off your keister and attend as many of these functions as possible. “They are a great way to reach out to investors,” Beaton says.

Crowd funding
This is the practice of funding a venture by raising small amounts of money from a large number of people, typically through the Internet. Beaton says it can be a great option for startups. “But it works better if you are selling a product or catering to a gap in society, not so much if you are selling a service,” Beaton says.

Family or friends
Don’t discount relatives and friends as potential investors. Yes, it can be tricky getting a loan from your brother or a high school buddy. But the advantage is they can be more willing to provide the cash because they trust you to use their money wisely. “You have already established your character with them,” Beaton says.