So you’ve just finished crafting a proposal that convincingly presents an awesome idea you had for a new business. You’ve researched the market, crunched the numbers, and laid out a vision for growth. Now you just need to find someone to read it and give you the money you need to get started. Here are 5 Ideas for Funding Your New Business.
Friends and Family
Believe it or not, this is a great place to start.
It can be intimidating to ask relatives for a loan, especially ones you don’t normally connect with, but you never know who might have some funds available to fund your great idea.
Make sure you give them a clearly written business proposal, explain what you’re proposing, and answer any questions they have satisfactorily.
And remember, even if they’re related to you, it’s still important to draw up a contract if the two of you decide to seal the deal.
Many universities have a center that facilitate your professional growth, connect you with other entrepreneurs, and direct towards reliable sources of funding.
The Small Business Administration also has 63 such centers across the United States.
Check your local chamber of commerce for guidance regarding the numerous resources your city might have to help new businesses get off the ground.
There are a number of sites like GoFundMe that have sprung up over the years.
In exchange for a small fee, they will gladly provide a platform for you to pitch your product or idea to the masses, who then have an opportunity to contribute towards your business goals.
Although these venues are typically used for charitable causes, to incentivize donations, you can promise a product or a service once your goal is hit.
Lots of businesses have leveraged crowdfunding to get off the ground.
Traditional Bank Loans
You may be intimidated by the prospect of meeting with a banker in a suit, but if your financial life can hold up to scrutiny, showing a reasonable degree of responsibility and success in previous endeavors, banks like Wells Fargo and Bank of America are eager to partner with you, because your success means a return for them as well.
Angel Investors and Private Lenders
Angel Investors and private lenders are financially established personages who want to contribute to the development of new companies that they believe will be successful.
Check out the Angel Capital Association, Angel List, and even the context of your immediate social media network to see if anyone is interested in funding your idea.
Although these simple 5 ideas may seem logical, most newbie entrepreneurs only focus on two – family and the bank. Hopefully, these additional ideas will help you.
You may also want to check out my earlier post on Top 4 Work From Home Opportunities.
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Image by Free-Photos, Markéta Machová, Bruno /Germany, Myriam Zilles, Kim Heimbuch from Pixabay