It’s easier than ever these days to start a business with the help of the Internet, but it can still be a challenge to get the funding you might need to thrive. According to the financial institution Fundera, the average small business needs about $10,000 in startup capital to get through the first few months.
These tips can help you find funding for the business you help to start from home.
Create a Detailed Business Plan
Creating a detailed business plan not only will help you set yourself up for success with a road map for guidance, but it also increases your chances of getting investors. People like to see where their money will be spent and obviously invest in successful ventures, so a plan of how you will execute that is a smart strategy from the start.
Talk to a Bank or Online Vendor
Whether you live in a big city like Los Angeles or a tiny rural community in Mississippi, it’s smart to research your local bank vendors. You will also want to see what lending options are available online and who can give you the best deal, should you decide that you need to take out a loan.
Talk to Venture Capitalists
Consider talking to venture capitalists who may be able to give you a certain amount of money as a loan with possible interest, or in exchange for some equity in your company. Much like ABC’s popular show “Shark Tank”, the VCs will have to see some value in the startup as they are mainly interested in making money off the business plan themselves.
Use Your Own Money
It would be extremely beneficial to start saving money for your new business early on so that you have a little more freedom when it comes to options for marketing and stocking up on inventory. At the very least you’ll be able to keep investors interested when they see that you can actually “put your money where your mouth is” so to speak, and keep operations afloat.
Get Help From Family and Friends
Borrowing from family and friends has some advantages over traditional loans from a bank in that you can customize your loan however you want or need to. The important thing is to remember to separate personal and business feelings so that it can be done professionally without the potential to ruin any relationships. If that’s a possibility, you might be better off avoiding this option in the long run.
Crowd Funding for a new company, especially a technology company, is a great way to gather large amounts of funds quickly for more freedom in the initial stages. Additionally, crowdfunding is an easy way for a startup to validate or invalidate their purpose for starting in the first place. The number of people who invest in the business is likely to prove just how big of a need there is for the service or item in the market.