As many entrepreneurs are aware, having a strong business idea and being able to bring that idea to market are two different things. Even if you believe your idea is full of potential and could bring investors and shareholders strong returns, you may be struggling to get the idea off the ground and find ample financing to start up the company. Although this issue is frequent, the good news is that there are at least four ways you can lock down the crucial business funding you need. Check out the four options for getting adequate funding that you may not have tried yet.
1. Get in Touch With Potential Financiers or Angel Investors
One straightforward funding option is to explore venture capital backing. From Xfund to independent angel investors, this option could allow you to skip the banks entirely and sign financially beneficial contracts. These types of financiers typically:
- Encompass entities and high-net-worth individuals interested in funding new business ideas with serious potential
- Provide start-up financing, generally in the form of funds and not loans
- May request a percentage of company profits or a certain stake in the business
- May help shape the trajectory of the company from its incipient stages
2. Ask Around Your Professional Network for Potential Leads
If you have a relatively widespread social or professional network, now is the time to start asking around for potential leads. You can start using your network by:
- Reaching out to LinkedIn contacts to ask for potential leads or insights
- Offering to have coffee or lunch with old contacts who may be able to point you in the right direction
- Signing up for local conferences and/or industry events to meet professionals who could provide financing, or know others who may be interested
3. Start a Fundraiser or Crowdfunding Effort and Lean on Family and Friends
For a more grassroots type of effort, you may want to consider business crowdfunding, fundraisers, and other approaches that rely largely on the generosity of friends, family, and often strangers. This option could encompass funding sources such as:
- Conventional fundraisers
- Donations or loans from friends and family members
- Rewards-based crowdfunding
- Equity-based crowdfunding
4. Meet With Local Bankers To Explore Realistic Loan Options
Finally, if you want to keep things simple, consider setting up an appointment to talk with a banker in your area. Make sure to ask about realistic loan options for your projected revenue and expected business model. Common bank-backed options include:
- Limited lines of credit
- Specific loans for real estate or equipment needs
- Small Business Administration-backed loans
- Conventional term loans
- Community fund loans
Without proper financing, even the most brilliant sparks of business ideas may never get off the ground. Thankfully, there are several options entrepreneurs can explore to get the necessary funding to start up a new company. Whatever business idea you hope to make a reality, you may want to contact financiers or angel investors, make use of your professional network, start a crowdfunding effort, and meet with local bankers. Once you explore these top avenues, you may find that you’ve secured enough funding to make your business idea come to fruition.
