Creative Ways to get Funding for Your Start-up

get funding for your start-up

Money, it is what can keep a would be entrepreneur from becoming a business owner.  When you have the desire to start a business but lack the capital there are several things you can do to help fund your start-up.  Before you start looking for financing you need to have an effective business plan along with financial statements before any potential investor will give you the time of day.  Bank loans for business are harder if not impossible for many potential business owners to secure, here are some other ways to get funding for your start-up.

Crowdfunding

This is a new way of securing funding that the internet has made possible.  Instead of having just one investor you can have multiple investors all contributing various amounts of money to help you get your business of the ground.  Websites such as Kickstarter or Indiegogo can help you kick off your funding campaign.  You put together a description of your business, your goals, how you plan to make money along with how much money you need and how you plan to spend it.  Bear in mind that most Kickstarter campaigns remain unfunded, you need to be very creative in your campaign to attract both money and attention.  Here is how to set up your own Kickstarter campaign.

Venture Capital

Venture capitalists are money guys that look for start-ups to invest in, and for many these are the ideal type of investor.  There are downsides to working with venture capitalists, first you need a sound business plan in place and they usually look to invest in larger start-ups.  Facebook and Twitter built their businesses using venture capital while the average neighborhood plumber or restaurant owner doesn’t.

Find an Investor

Investors work like venture capitalists only on a much smaller scale, think of Sharktank as an example.  Just like on Sharktank they are going to take ownership of a portion of your business.  In effect you end up with a silent…or not so silent, business partner.  This isn’t necessarily a bad thing as you keep control of your business, you not only get money but oftentimes you get a mentor as part of the package.

Small Business Loans

For many entrepreneurs this is the first place you go to when looking for business financing.  The government has put together a whole department to help you get business funding.  The problem lies in cutting through the red tape and mounds of paperwork to qualify for a loan.  For a first time business owner with very little credit history a small business loan may not be possible.

Self Financing

If you have a solid credit history or you’re a home owner that may open up the possibility of financing your own business.  This is risky and be prepared to be obligated to pay back these loans whether your business meets income projections or not.  If you can make it work it can be the best option, you have complete control over your business without unwanted partners.

Three Steps that Will Take You from Start-up to Success

Three Steps that Will Take You from Start-up to Success

Each and every entrepreneur had to start somewhere, but what sets the successful ones apart is the path they take and how they overcome obstacles.  It is not the strong that survives it is the most adaptable and nowhere is this truer than in business.  Here are three steps to take that will get you from start-up to success.

Make a plan

You have already been bitten by the entrepreneurial bug and now you need to figure out what that looks like.  Dream big, you want to be the next Richard Branson…good!  Now make a plan on how to get there.  Many entrepreneurs have the drive to get started but what they lack is the follow through.  Many get bored quickly and move on to something else.  Writing a detailed plan allows you to hold yourself accountable and that leads to progress.  Without a detailed plan all you have is a dream and everybody has those.  People with written goals are far more likely to achieve them, here is a Harvard study that backs that up.

Know what you want but be flexible getting there

Once you have started making your plan you need to prioritize the tasks that will get you there.  Many business owners get caught up in the day to day minutiae and fail to keep an eye on the big picture.  Focus your efforts on what will create revenue and allow you to grow to where you want to be, outsource the rest.  If you try doing everything yourself nothing gets done well.  While in the beginning you will need to plenty of the work yourself, but every start-up reaches critical mass and then it is time to hire.

Be prepared to fail

The road to success is paved with failure and every entrepreneur from Edison to Bill Gates has failed.  That doesn’t make you a bad entrepreneur but not learning and growing from your failures does.  Most entrepreneurs embrace risk, otherwise they would still be sitting in an office working for someone else.  Mistakes are not something you can avoid so take them as learning opportunities.  Learn quickly and often!

You created a business and put together a plan with the goal of going and thriving, until you reach the point where you can step back because your business is self-sustaining.  Don’t be afraid of failure, failure will only bring you closer to your goals.

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