Call the local Chamber of Commerce in your area to find other local businesses that may be looking for investors. Keep in mind that there is a difference between a business opportunity and a business investment, since business opportunities fall into the broad category of investments. Examine business or trade publications for information on new or established companies seeking investment. A business opportunity usually consists of buying the company directly or holding enough shares in the company for your direct opinion to guide operations.
There are steps you can take to minimize risk when selecting a business, as well as to find the business most likely to make a profit. You want to make your investment profitable as soon as possible, and business preparation lets you know how long you'll wait to receive payment. According to the Small Business Administration, roughly half of small businesses will fail in five years, making small businesses one of the riskiest investments you can make. As a new investor, go for companies that have a clear plan for generating profits and a wealth of past experience.
As a first-time business investor, avoid investing in companies where the people involved don't have the right business experience so you can evaluate their capabilities. There's no question that, if you've already decided what areas of the industry or what opportunities you want to invest your money in, you'll need help determining which specific business investments will be most profitable for your money.
