You have a great idea for your small business but perhaps you need some funding to make it happen. Whether you’re starting a clothing boutique or selling your art, there are many options available for you to get the funding to make your entrepreneurial dreams come true.
These 5 tips below will help you find the best funding option for you and your idea. Your success is just around the corner.
1.Consider taking out a loan.
Taking out asset based loans could be one of the quickest ways for you to start funding your business idea and have you get started on bringing it to life as soon as possible. With many banks offering increased interest in small businesses in this day and age, this could help you get a decent-sized loan, especially if your idea already has some wings and income coming in. Make sure to take time to read the fine print when getting a loan, so you know what you’re committing to in the long-term.
2. Check out crowdfunding options.
If you have a solid business idea and you believe in it, crowdfunding options could be right for you. Instead of finding just one investor who is willing to take a chance on you, you get the opportunity for multiple investors to believe in you—which can actually be a whole lot easier. You’re going to need a bullet-proof strategy and explain exactly how it’s going to happen, but the method behind getting interest is as simple as 1, 2, 3. Post on crowdfunding platforms, explain what you need, and hit go! Of course, actually getting their attention (and their money) is much more complex than this.
3. Ask your family and friends.
Many people shy away from asking their loved ones for help but it could be worth it. If there is anyone who may believe in your idea more than anyone else, it could be your family. So, before you go to the bank or sign up to a Kickstarter or crowdfunding site, consider asking your loved ones if they would be willing to pitch in. You can clarify with them whether you’re asking for a loan, inheritance in advance, investment, etc. Having a solid business plan that shows exactly how you’re going to achieve your business goals is important. They may be your family but chances are they want to be sure they’re investing in an idea they can get behind. It may feel awkward but consider treating the experience like it’s a business meeting and not just a family affair.
4. Look into a local small business development center.
Look into a small business center in your area. While they aren’t where you’ll get the funding, they’ll know where to direct you towards and help you find the people or methods that can work for you and your idea. Because most cities want to have a solid economy and plenty of businesses to achieve this, you should be able to find a wealth of information at a business development center in your area.
5. Reach out to angel investors.
For tech-startups, angel investors could be the way to go. While you can get quite a good amount from crowdfunding or even from a wealthy family member willing to invest in your idea, for a tech company, you’re going to need to aim higher when it comes to the investment. Angel investors are the answer in this case. To find them, consider looking into what your connections may recommend or check out sites that are designed for connecting investors with ideas.
You know what they say, “nothing ventured, nothing gained!” If you believe in your idea and you have the guts to try anything and everything to make it happen, nothing can stop you. With these various options, you’ll have the opportunity to see your business idea come to life.