You know the markets inside and out. You have a grasp on what makes a sound investment.
However, when it comes to your own business, you’re not quite as confident regarding capital.
Maybe you don’t have as much cash on hand as you’d feel comfortable investing. Perhaps you’re looking for investors and funds beyond your own network.
Either way, you’re certainly not alone.
Reality check: even the savviest of investors and money managers can struggle when it comes to fund their proverbial big idea.
Rather than assume that your next project is sunk, consider instead the various options to score funding that you may not have considered in the past. From getting creative with your own wealth to attracting the attention of potential investors, consider the following tips and ideas to win funding without fail.
Send the Right Message to Investors
First thing’s first: securing any sort of investor funding requires you to signal trust from the word “go.” From your proven track record as a business owner to staying compliant with industry regulations, every aspect of your company and idea is rightfully under scrutiny. Presenting yourself as a “sure thing” with data backing up the viability your idea is an absolute must.
Especially if you want angel investors and VCs looking at you, having everything “by the book” will exponentially increase the likelihood of getting funded. This rings true for smaller investors, though, who obviously feel more comfortable with someone who can prove what their idea is worth.
Embrace the Crowdfunding Craze
We live in a day and age where people are surprisingly open to pledging their own wealth to see others succeed. Through crowdfunding platforms such as KickStarter, businesses can effectively finance products or initiatives with the peace of mind that their idea is valid by only proceeding once their monetary goals are met.
Coming up with a successful crowdfunding campaign oftentimes means appealing to a niche community and likewise supporting a cause. Simply begging for money isn’t going to cut it; however, you can drive people to donate to you when you speak directly to their principles, pain points and desires.
If you have a business idea that’s buzzworthy from a social standpoint and you can craft a compelling message, crowdfunding could be a lucrative option for you.
Break Down Your Personal Investments and Budget
The concept of self-financing a startup might seem completely insane, but don’t rule it out quite yet. After all, being beholden to investors creates a sense of pressure and expectations that are gone in an instant if you can finance yourself.
While this may be easier said than done if you’re trying to score some major capital, you can at the very least sow the seeds of a smaller business yourself to test the waters. Some realistic options for doing so include…
- Borrowing against your 401k plan
- Withdrawing from an IRA account early
- Taking inventory of your assets and seeing where you can cut corners, allocating a certain percentage of your budget toward your latest idea
Of course, make sure to get a second opinion for any of these courses of action before doing anything drastic.
The key to making your business work is having options available and understand which sorts of funding types fit to your strengths. Having these ideas in your back pocket can help you do exactly as you turn your concept into a reality.