How to get other people to fund your small business venture
If you want to start a small business, you probably already have a business idea. Now, you need to know how to get people interested to get the cash you need to make your business dream a reality.
You may know how to think up a business, but you may not know how to start a business with no money. Whether you’re trying to create a new app, an IT store, or a bakery, you need some basic strategies to get people to fund your venture.
Here are a few ways to get the money you need.
Friends and Family
If you don’t have enough start-up capital, the next best option is to ask your friends and family to help you finance your venture.
Many people are scared to do this since it’s an awkward request that can put people in a tough spot. However, if you truly believe in your business, you may not only be requesting your friends’ help but also doing them a favor. You can tell them so.
Just make sure you know exactly how your business will run before you ask. You want to show your family you understand how big a favor you’re asking by preparing beforehand.
What happens if your family can’t give you the help you need? If your business’s startup demands are small enough (less than $5,000), you may be able to get the help of a micro-loan organization like Accion.
They help small businesses like yours get started with a small loan that you should be able to pay back once you’re up and running.
Crowdfunding has become increasingly popular in recent years for its accessibility to any business venture. Sites such as IndieGoGo and Kickstarter are platforms where you can post your needs, set a target amount, and ask people to contribute to your campaign.
Many small projects and businesses have gotten amazing results from these campaigns. You just need to sell yourself as professional and passionate and set your expectations realistically.
Many areas have networks of investors and professionals looking to invest in promising startups. Business administrations and universities often help you find investors and qualify for loans based on your needs.
Visit your local chamber of commerce for information on local investors and possible sources of funding. You may not realize how much financial support is waiting for you right in your local area.
Most cities want successful businesses to form within their borders. Even if you can’t get funded by asking your family or raising the money online, there are many other funding options. You can often find investors on local registries or through business administrations that are willing to fund your idea.
It is important to ensure that before you seek funding, you have a clear business plan and a solid proposal. There are likely people out there waiting to invest in an idea that seems profitable. You just need to help them understand your passion first.