Investors use their money to make more money, and one of the ways they use is to invest in profitable business. As their goal is to make as much money as they can, in short or long term deal, this gives the opportunity to business starts to raise the money the need to startup.

To attract an investor, interest him, and persuade him to "put up" the money you need to startup your business, you\'ll not only have to offer him an opportunity for big profits, but you\'ll have to spell out your business plan in detail, and further, back up your claims with proof from your marketing research.

You should also describe what makes your business unique how it differs form your competition and the opportunities for expansion or secondary products. You\'ll have to describe clearly how the money you want is going to be used. If it\'s for an existing business, you\'ll need a profit and loss record for the preceding six months, and a plan showing how this additional money will produce greater profits.

If it\'s a new business, you\'ll have to show your proposed business plan, your marketing research and projected costs, as well as anticipated income figures, with a summary for each year, over the next three year period. This prospectus will have to state precisely what you\'re offering the investor in return for the use of his money. He\'ll want to know the percentage of interest you\'re willing to pay, and whether monthly, quarterly or on an annual basis.

 Your prospectus should also include a resume of your background, your education, training, experience and any other personal qualities that might be counted as an asset to your potential success. It\'s also a good idea to list the possible loans you\'ve had in the past, what they were for, and your history in paying them off. Venture investors are usually quite familiar with "high risk" proposals, yet they all want to minimize that risk as much as possible.

Therefore, your prospectus should include a listing of your business and personal assets with documentation usually copies of your tax returns for the past three years or more. Your prospective investor may not know anything about you or your business, but if he wants to know, he can pick up his telephone It is advisable to base your cost estimates high, and your income projections on minimal returns in order to enable you to ride through those extreme ups and downs that frequently happens in any beginning business.

Be elucidative and not elusive to a potential investor. Be honest with him. Lay all the facts on the table for him. In most cases, if you\'ve got a good idea and you\'ve done your homework properly, and "interested investor" will understand your position and offer more help than you expected.

 Finally, the task of raising money for a business is not as difficult as most people seem to think. This is especially true when you have an idea that can help you and your backers to make good profit. Believe it or not, but the true is that there\'s more money available worldwide for new business ventures than there are good business ideas.

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