Do you have a great idea for a business? For years you've dreamed of having something to call your own.
Day by day you watched others take the leap of faith and take off with their ideas. You, on the other hand, don't know where to begin.
How do people get their business idea to become a reality? For starters, other than having an idea, they need funding.
Funding is what'll allow you to gain the capital you need to get started. For a few ways on how to get funding for your business, let's take a look.
Here we go!
Get a Bank Loan
Banks these days are willing to stick their necks out for businesses big and small. They often see it as a good investment.
However, it's not as easy as you may think. Aside from traditional loans, you need to convince the bank as to why you need the money. Saying you simply want to start a business won't cut it.
Instead, let them know your idea and how it'll not only help you but your future customers as well. When going into the meeting for your loan, make sure to bring copies of your credit score and annual revenue.
The benefit of getting a bank loan is that you'll be guaranteed the money for a certain amount of years. Not to mention you won't have to give up stake in your company in exchange for the loan.
Try Crowdfunding
Sites like Kickstarter are useful for getting the community behind your idea. It's a good chance to see if your idea will actually take off by the people you're targeting.
Crowdfunding is also beneficial if you don't need the money right away. It can take anywhere from days to months to fund your idea depending on how much you want to raise and how quickly your idea gains interest.
As a return for people funding your idea, if you reach your financial goal, you can offer to send the backers something in return. If you're opening a coffee shop, offer to send them a bag of your finest roast if they pledge $25.
Pitch an Angel Investor
For those who are looking for a more serious way to gain funding, an angel investor may be the way to go. Big-time companies like Uber and Facebook used angel investors to gain traction.
Using an angel investor may have you well on your way to having your idea be featured on Radical Technology Profits by The Money Map Press. Especially if your idea is unique and shows immense promise.
Investors want to get a cut of a business that's proven it can get their money back and be sustainable in the years to come. When it comes to pitching angel investors, be sure to have a solid business plan, a prototype (if possible), and a few customers to show there's interest.