How to Invest in Small Businesses

Small businesses are the backbone of our economy, but it can be challenging to get one off the ground or grow it.

Small business investing provides funds to a business by buying into or lending to an existing business. 

What is Small Business Investing?

The first step to investing in small businesses is finding a deal worth pursuing. 

How to Start Investing in Small Businesses

1. Find Deals Worth Pursuing

You’re risking your own money, so you want to be as sure as you can about the ability of the business to grow and profit.

2. Perform Due Diligence On Market Opportunity and Business Strategy

You’ll want to understand other funding options open to you, those the business has already utilized, and the status and results of that funding.

3. Understand How the Business is Funded

It’s important to meet with the business owners to solicit their interest in obtaining funding through individual investors.

4. Meet with Small Business Owners to Solicit Interest

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