How do I find investors?

Monday, November 17th, 2008

Dear Norm,
I need your advice about finding investors. If I have no money to put into a business, what else might I be able to contribute as a form of personal equity to woo investors? The only idea I have is to sign a promissory note.

Dear Dave,
If sweat equity isn’t enough for outside investors, I doubt that a promissory note will do the trick either. You’ll probably have to get some Rolodex funding first. By that, I mean you’ll have to start calling people in your address book, including close friends and relatives. Any money you raise from them will be seen by outside investors as money from you. By asking for money from friends and family, you’ll be taking a risk on your future relationships with them. That counts with outsiders who want to know you’re investing something important besides your time. Yours truly, Norm

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