Funding your path to success
You have imagined a fantastic, original idea for a small business. Creatively, you have constructed the perfect business plan and are finally ready to put it into action, but are now faced with the daunting task of finding some sources for capital.
Most entrepreneurs struggle with finding the right resources (and enough resources) to provide start-up financing for new small businesses. When you have the ultimate business plan fine-tuned, here are some ideas for getting enough cash to put your plan in action.
Shake out your piggy bank
It seems unrealistic and even childish to most, but Entrepreneur.com confirms that the top start-up funding source for new businesses is personal savings and credit. No fear, this does not mean that you have to sell everything you own if you want to make your business a reality.
There are a lot of personal loans and credit options, like InstaLoan, that will help you get the cash you need now in order to save your personal financial future later.
Start a campaign
Crowd funding is the fastest growing funding source for new businesses, according to Entrepreneur.com. Spread the word about your company, get people informed and excited about your mission and they will want to contribute and see you grow.
Some ideas to implement this could include fundraisers, being a sponsor to a local event and sites such as Kickstarter and Indiegogo can create the awareness and intrigue your business needs to hit the ground running. Enlisting the local community is crucial for any small business. You will need them as long as you are afloat, so start out on the right foot with them.
Ask your mom
Again, it seems childish, but family and friends are a legitimate source of funding for many small businesses. Your friends and family are the ones who are most supportive of you and your career goals, so they are usually not only the ones most likely to give, but will also be the ones who are the most generous, especially when you are first starting your businesses operations.
If you are going to use this option, make sure you create some future value for them. Just because they are your family and friends doesn’t mean that they want to simply give you their money without any return. Create a payment system with them or give them part ownership or stock in your business. Keeping the relationship mostly professional will ensure that everyone is happy in the future.
Look to the sky
Angel investors can be a God-send when you are trying to get your business up and running. This method is all about research. Seek out people and companies with similar visions, ethics and morals as you. Finding the right investors to stick with your company throughout its existence is a great move for your business now and in the future.
Forbes has created a list of tips and tricks for this type of investing in small businesses. This includes networking with similar business minds to find similar passions and motives, knowing your business plan inside and out so you can discuss it in detail with any potential investor and never offering to give up control of your company so that you can maintain the business plan that you have created.