The challenges facing a new business venture are many. Perhaps the biggest one of these challenges is finding adequate funding to open business operations. As a new business owner, you will need funding for everything from office space, equipment, to staff hiring. Banks and other traditional funding sources are sometimes sufficient to obtain the funding needed by new businesses. But other times, it is necessary for new business owners to stray a little off the beaten path to find the money they need for their startup business.
Attract an Angel Investor
Angel investors are often willing to provide funding for unproven companies that show promise. Many times, these angel investors make themselves available for mentorship and will provide advice to the business owner when needed.
There are a number of things a business owner must have in place if they hope to obtain help from an angel investor:
• An innovative business idea
• A share in the risk
• A scalable business
• A solid business plan
• Signs of potential success
• Strong leadership
Do a Fundraiser
Many business owners have raised the money they needed for their startup by doing a fundraiser. There are different types of fundraisers you can do that will help you get closer to achieving your goal.
Some fundraisers that have been successful for business owners in the past are t-shirt sales, direct mail soliciting, and raffles. The number of fundraisers available to business owners is only limited to the imagination of the business owner.
Seek Venture Capital
Venture capitalists are not very different from angel investors. They have money to invest and are interested in young businesses with the potential for growth and relatively high-yield returns.
Venture capitalists will usually want equity in your business in return for their investment. In most cases, they will also want to have a say in the direction and operations of the company.
Venture capitalists are often more interested in doing business with experienced businessmen. They are also interested in the team the business owner has constructed around his or herself.
All new business owners know the challenge of securing sufficient money to fund a start-up. Though the road is difficult, there are ways for business owners to get the money they need. The three strategies above have been used successfully in the past by business owners to fund their business ventures.
Are you in need of coaching and support to start your new business? The BMOC Group has your back. Contact us to schedule a consultation to see how we can help your business take off!