Step 1. Drawing up a business plan.

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When choosing an object for capital investment, investors first study its business plan. It is important to correctly draw up this document and indicate the following information in it:

description of the business idea;

calculation of the investment amount;

analysis of the commercial benefits of the investor;

payback period of the business (after what period of time the first profit will be received);

company development prospects.

Experts advise aspiring sri lanka email list entrepreneurs to pay attention to every little detail when drawing up a business plan. Every detail should inspire confidence: from the use of professional graphic editors when drawing up diagrams to the quality of the paper on which the document is printed.

Step 2. Selecting the optimal form of cooperation.

There are various forms of cooperation between entrepreneurs and investors, and the best option for the company should be chosen in advance. Sponsors can receive income from investments as:

percent of the invested amount;

percentage of profits during the entire period of business operation;

shares in the company.

Having chosen the optimal algorithm for profit sharing, the entrepreneur specifies it in the business plan. If the potential investor categorically rejects the scenario you proposed and wants to use another option for cooperation, carefully analyze it. By insisting on your terms, you risk being left without funds for the development of the project.

Step 3: Seek help from experienced entrepreneurs.

Beginning entrepreneurs can rest assured that no one will understand their problems better than entrepreneurs who have been successfully working in the same field for a long time. Often, such businessmen are willing to share useful advice with beginners, especially in cases where they expect fruitful cooperation in the future. Some experienced entrepreneurs provide support by investing in ideas or disseminating information about interesting projects among other investors.

Step 4. Conducting negotiations.

Many sponsors decide to invest in a project already during negotiations, so a budding entrepreneur should thoroughly prepare for the meeting. You should not only demonstrate the excellent prospects of your enterprise to a potential investor, but also give competent answers to all of his questions. The first negotiations with an investor usually come down to a presentation of the project and a description of the business plan. Invite to the meeting a specialist who participated in the work on the document, because he understands all the intricacies and will help you dispel the doubts of a potential partner.

Step 5. Conclusion of the agreement.

If the negotiations were successful, then the final stage will be the signing of the investment agreement. Study all the terms of the document in detail, if possible, contact a professional lawyer for clarification.

The agreement must include the following information:

interaction period;

investment amount;

rights and obligations of the parties.