Being an entrepreneur is an exciting role. Having an idea is the best that can happen to you as a business person. The hardest part of raising a business to a significant level is to get the idea and being able to develop it to a significant level.
Finding the money to do it, is a different story. It’s not easy raising capital and starting your business. There are millions of people around the world that would start something of their own, but raising capital is forfeiting them doing it.
If you’re one of these people, and you don’t know where to look for money, we’re here to help. We’ll share 5 tips for you, which might be helpful in the search for business capital. Follow up and see if something sparkles your mind, and is helpful for the idea you have.
1. Launch your own crowd funding campaign
We live in a digital era. Everything’s available online, and so is making money. On the internet, you can find more sites on which people like you offer their ideas and see people fund them. This is called crowd funding. The name comes from the obvious way of funding the business plan – off the crowd.
People will share their portion and fund you because they want to see a particular product developed. Some do it because they love the idea, and others are simply altruistic. In both cases, you’re the one that wins, because you’ll get the needed capital without doing anything special. Just, don’t forget to mention their names once you become successful and famous.
2. Find an Angel investor
Angel investors are amazing people. These are individuals who earn enough to be investors for start-ups or beginner entrepreneurs such as yourself. They will give you the needed capital and will expect equity of the ownership.
You’re the one that will entirely and autonomously work on the project, you’re going to be credited as the person in charge, but they will ask for a share once the product becomes successful. Learn more about them here.
Angel investors are similar to venture capitalists, but they don’t operate in the same way. Venture capitalists do not use their own money for investing in your project. This is why angel investors are a better choice. When someone decides to put their hard-earned money into your idea, you know that you’re headed in the right direction.
However, to get the attention of an angel investor, you really need to have a great project, present it perfectly, and catch the attention of these guys. There are lots of pages on the internet offering mediation between you and the investors. You just need a great developed plan.
3. Ask for a business loan
A business loan is the best option for many. Why? Because you don’t get to share your idea with anyone else out there. Yes, you do go into debt, but if the product is successful, then you don’t have to share the credits with anyone.
On the loan market, there are tons of options. Some institutions provide specialized loans for start-ups and small entrepreneurs, and you might need some research before choosing one. For example, the Prestamos Business Loans offer SBA microloans, which are made for small businesses who need up to $50,000.
Large banks won’t have such options and you’re going to visit them first because of their popular names. However, these are not your best choice. Look for places that offer something you need.
4. Offer your friends and family to support you financially
If you don’t like going into debt, and you don’t want to share your idea with total strangers who might snatch your plan and develop it on their own, then you might try talking to your friends and family.
There are lots of cases in which famous businessmen started their businesses with capital from their parents, or when a couple of friends teamed up together to make a particular project successful.
This is a great option for those who do have friends or family that can provide such help. You also need to have a perfect idea that you’re sure to be successful. It’s terrible to see how your friends’ money goes down the drain and you’re responsible for it.
5. Try bootstrapping
Finally, bootstrapping. For those who are not aware of the term – it’s funding your idea on your own. People who have life savings might spend it on this. Others sell everything they have just to see their business plan rise.
This is a great choice for those who can afford this, but most of us are not eligible for something like this. If your plan needs $100,000, and you’re in your 20s, then it’s unlikely to have enough life savings or real-estate on your name. However, the option remains for those who do have this option. See more about it here: https://www.investopedia.com/terms/b/bootstrap.asp.
These five points are the main paths to success. If you have an idea and you did your research, then all you have to do is pick one of these and raise the capital. There’s enough money in the world to see anything happen. Nothing’s impossible.
Once you decide and see the funds on your bank account, make sure you work hard enough and see them turn around to make everyone proud and successful. Everything starts with an idea and grows with hard work. Money is the easiest part.