|September 2, 2014 | By admin|
Small businesses are the backbone of our nation, ask anyone from President Obama to your friendly neighbors. Many want to dip their toes into the world of entrepreneurship while still being employed, hoping and praying that the perfect time would come when they could leave the corporate life and be a full-time business owner. Aside from coming up with a unique product or service, getting funds for a business could be one of the most difficult stages of building a business, especially for first-timers. If you don’t have the money, you’ll have a hard time starting your business.
Entrepreneurs need to look around to get enough financial assistance to make a business idea finally come to fruition. Here are great tips where you can find fund for your startup:
Tip #1 Network.
Social media is a great way to find and meet new people. You can connect with financial institutions and people in business whom you can tell about your business idea. While it is a fairly easy way of networking, nothing beats meeting new people personally. Jordan Eisenberg, founder and CEO of Denver based UrgentRx, committed himself to meeting one new person every day, at least six days a week. He met a lot of people who were unqualified to give him what he needed but eventually, he met his biggest investors through networking.
Attend business seminars, join discussion groups in LinkedIn or Facebook, and go to events to meet like-minded personalities. Surround yourself with people who could potentially help you in your startup.
Tip #2 Enter a contest.
There are companies and institutions such as Amazon and MIT which offers large financial rewards to small business owners. Tons of entries are submitted to these contests so make your idea original and find ways to make it standout from the rest of the competition. You’ll either explain your business idea in an essay or present it in person.
Tip #3 Contact the Small Business Administration (SBA) and angel groups.
The Small Business Administration (SBA) operates Small Business Development Centers throughout the country which help connect entrepreneurs and investors. They make it easier for business owners to find an angel investor.
Tip #4 Take a loan.
Don’t be afraid of the word “loan.” A business loan is considered a good debt since you expect that the money you borrowed from the bank or your family and friends would be able create value and generate money for you. Entrepreneurs take loans for expanding their business and buying assets such as equipment and real estate. The loan is geared towards creating more money that would eventually pay for the loan itself.
Finding the funding for you startup need not be complicated. Once you have a good business plan and you’re able to sell this idea to the most number of people, you’ll realize that the fund would be the one looking for you.
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