In order to start a business or to expand and embrace growth, every
entrepreneur or a business enterprise at some point of time in its life cycle
has to look out for investments from the outside. Self-funding is better but
it’s a slightly rare phenomenon.
Small and medium-sized enterprises often have to rely on external financial
sourcing to fuel their take-off. And finding investors who would be willing to put their
money into business prospects can be a tough job. This job is no less than that of
selling dreams. But here the odds in favor of an entrepreneur is that he
gets to back up the dream venture with a business plan, a working business model,
marketing and financial feasibilities and reliable statistics and credentials. These
elements are essential in a business prospect to attract and interest the potential
investors like venture capitalists, angel investors, financial institutions, etc.