Instructions on Getting Funding for a Business Idea
1. Determine how much you need to get the idea to market. Create a budget and think of everything that you will need to spend money on. Such things as manufacturing, legal costs and marketing should be included in your budget. Estimate on the high side and plan on contingencies.
2.
Make
a business plan. You will need to present this plan to banks or other investors
to get financing. Describe your business in detail, explain your marketing
plan, detail your current finances and give information about any partners you
will have.
3.
Practice
your speech. Know your business plan well and be prepared to present it at any
time. Anticipate questions you may be asked from potential investors.
4.
Start
with family and friends for funding. Your family and friends know you well and
want to support you. Share your interest for your business idea with them. If
they do want to invest, make a formal business agreement.
5.
Try
traditional banks for financing. For new businesses that may be difficult. Try
smaller banks or credit unions that cater to local small businesses. Consider
using your home equity to finance your business idea.
6.
Seek
partners for funding. A partner with cash may be what you need to get your idea
going. Choose partners carefully. Be certain you can work together. Look for
partners who have skills besides money to contribute to the business.
No comments:
Post a Comment