Types of Investors

You wonder why anyone would want to put their hard earned money in someone else’s business or idea, right? Like, would you? Most likely you wouldn’t but hey, they say to read a book when you don’t know something but we’re giving it to you for free.

 

Investors come in many shapes and types, we don’t mean physically. There’s all kinds of investors to suit your business’ needs. We’ll give you a quick walk through. Assume you have a business, right? And it needs all sorts of things from money, supplies, guidance, name it.

 

Investor A is like KCBae, a bank that will fund your business. This is where you seek a bank’s help by walking in and applying for a loan. You then use this loan to service whatever purchasing/expansion plans you have for your business. You then pay interest which services your loan. Pay your mobile loans people because this kind of investor looks at your credit score to determine your ‘credibility’ (see what we did there?)

 

Investor B is a ‘made it’ individual who puts money in your business because they are either passionate about your category or sees prospective profits in what you do; or both which is a major score! This kind of investor is called an Angel Investor. Usually, he just wants to see you soar.

 

Investor C is someone who you has a stash that can help you expand your biz. So because you know they must exist, you go online and create an online profile for your biz and hope that someone looks at it and squeezes a couple of  bucks your way. This is usually to cut away the middle man who makes a little mullah from matching you with a prospective investor. Pretty neat, right? This is called Peer-To-Peer lending.

 

Investor D is a Venture Capitalist who squeezes funds into your biz in return for equity. Ideally you pitch to them convincing them why they oughta invest in your business and if they buy your story, they ask for shares in your profits/company of an agreed upon percentage. They are the kind you find on KCB Lions’ Den.

 

Investor E is a Personal Investor. These are people you know actually know. They can be friends or even family. Remember how your folks would open up a small shop for your help to make a few extra bucks? That’s a Personal investor right there.

 

Mentors are also investors. They may not necessarily inject money in your biz but they have expertise and authority in what you do. They offer advisory investment and guidance. They are such an important part of your business’ success. Many startups fail because while we are motivated to going onto biz, we forget the know-how required. We can’t possibly know everything and so you’ll always need a guiding hand to hold onto.

 

The good news is that the Lions can offer all or one of the aforementioned. Cha muhimu ni evaluating your biz and seeing what needs you can’t address on your own.

 

We’re all trying to make it so seek help because no man’s an island – the same goes for entrepreneurship.

 

 

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