How to Find Businesses to Invest In

Two investors shaking their handsBusinesses often find themselves in a position where they are catering for as many clients as they can handle but lack the capital to finance an expansion of their operation that would allow them to add to their client base. Lack of capital is not an indication of a poor company but could be simply a lack of liquidity due to the necessity of carrying stock or purchasing equipment.
For investors, capital ventures of this nature carry little or no risk, since the business involved has already proven its ability to attract business, now only limited by the finance that will allow growth.

Finding Suitable Companies

Finding companies willing to accept your investment is not difficult but like other capital ventures that require significant expenditure, care should be taken to verify all aspects of the operation before money changes hands. Most investors use traditional tried and trusted methods to seek suitable opportunities for investment. They will avoid ‘get rich quick’ schemes, preferring instead to rely on companies with a solid business plan and proven expertise. The best way to find these companies is to meet with your local Chamber of Commerce or other networking groups, as it is likely that some of their members will certainly qualify. You do not have to take this on word of mouth alone, as it is standard practice to request a business plan, financial accounts for the previous three years, and any other documentation that will aid your decision. Several websites are available, that can also provide some information on investment opportunities and could be reviewed if a local search yields little results.


When you find a suitable company and all their company information meets your chosen criteria, it is then time to decide on the rewards expected from your investment. Again, this is typical of capital ventures of this type and your benefits could include a set percentage on your investment within five years or even a percentage of the company if your investment is a substantial one. In some cases, if the company is seriously lacking in expertise, management control could be insisted on, in order to maximize return for all involved.

In all capital ventures, insist on company accounts, customer lists and any other information required to verify legitimacy of business. Failure to do so could result in the loss of your entire investment.

PIC: Thomas von Stetten - Fotolia

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