One of the biggest hurdles the aspiring entrepreneur faces is where to get the money to open a new business. Ideas, business plans and solid policies are only half the story. You need that ever elusive startup capital to get up and running in the first place. It can seem confusing and complex, but the truth is, thousands of people open businesses every year, and you can do it with the right approach. Learn these tips and advice to gain capital and get started funding a business so that you can open your doors with confidence.
Funding a Business
Funding a business is the trickiest part of getting started. It can seem like an arcane labyrinth with no real solutions. However, there are options out there. In fact, in this day and age, there are more options than ever before to gain funding for your small business!
Know Your Niche
No business is generalized. You have a target audience and a target sector in which your business fits. Know this niche inside and out. Whom are you trying to help? What is the service you are providing? Who out there does something similar? What makes you unique, and what do you have in common with others? This will help you not only find the right funding sources but to develop a quick “elevator pitch” that you can pull out at a moment’s notice.
Look for Grants
Grants are a great way to fund a small business. While the idea of a federal small business grant is, by and large, a myth, there are many institutes, charities and corporations out there who specifically fund small businesses via grants. To gain a grant you will need to fit strict requirements and be truly unique.
There are a lot of contests out there whose goal is to fund startups. Look at the popular television series Shark Tank, for example. Many of these contests are designed to let you use that elevator pitch you designed to convince venture capitalists to give you the money you need to get going.
Crowdfunding Is King
Crowdfunding came on the scene about a decade ago, give or take, and it has taken off like a cannon. It is an excellent way to find others who believe in your vision and are willing to kick in money to help you get going. Not only is crowdfunding a great way to gain funding for your business, but it also has the added benefit of being a ready-made marketing and advertising channel. If you do well in crowdfunding on Indiegogo or Kickstarter or any other platform, people will take notice!
Talk to Your Lawyer
Every new business needs an attorney, and talking with your attorney can uncover many avenues for funding you may not have considered. If you are still looking for legal representation for your new business, we can help. Look at our business law articles and get in touch with us for help and advice today!