“No” Is Not an Option When You Need Start Up Business Funding
You have asked your family and friends for business funding for your new business and are tired of being turned down. They all have good reasons why they have to refuse to loan you money, but somehow that doesn’t seem to make you feel any better about the refusals. You have a wonderful new idea but can’t seem to get anyone to commit to your vision. You need start up business funding.
It’s not unusual for entrepreneurs to have great ideas and a passion for their vision. But it takes cold hard cash to make that vision come to life. Finding startup funding can be difficult if you don’t have connections, a working relationship with a bank or someone who can introduce to investors who would be interested in your new business. It can seem like quite a circular process too. It’s difficult to convince investors your business is a safe investment when they are asking for proof of success. How can you succeed until someone helps you get started?
Looking at All the Options for Funding Success
It is not unusual for entrepreneurs to exhaust their personal financial resources before looking for investors interested in giving them start up business funding. Even if you did manage to get some funding from friends and family members, it is likely that it was not nearly enough. The next step is to locate other funding sources so you can expand your fledgling business. It doesn’t take long before you need more inventory or more money for payroll. Without the outside funding, the entire enterprise will never really get going.
It is important to consider all of the options for start up business funding. With the credit market remaining tight, the best approach is to seek the services of a professional familiar with business funding opportunities. Following are the types of funding available:
- Business Loans – Business loans traditionally come from banks. Despite the constant news reports saying that banks are not lending, there are plenty of loans available for entrepreneurs who have solid business plans. This is where a professional can help you shorten your search time and go right to those worldwide lenders who are funding businesses.
- Angel investors/organizations – These are private investors willing to fund new businesses with their personal money. They invest in one of two ways – equity or debt. Don’t let the name fool you though. They may be angels but they are business angels. These angels are frequently looking for businesses in industries in which they have personal experience.
- Equity Partners – Equity partners are private investors who take part ownership in your business. The investors may become stock holders or partners.
- Venture Capital – A venture capitalist may be an individual but it is usually someone who is part of a venture capital firm. Venture capital often is invested in businesses that will grow fast and bring in good returns quickly. The venture capitalists usually take an equity position in exchange for the funding.
Never Assume You Do or Don’t Qualify for Funding
There are many different sources of business funding available. Too many times entrepreneurs assume that one type or another of funding is not available for their business. But you never know for a fact which funding alternative will be a good source until you apply. You need to pursue traditional business loans, venture capital, equity partners and angel investors when looking for start up business funding.
If you are searching for business funding, you will want to pursue all avenues. And that means you should even go ahead and ask Uncle Wayne while you apply for other startup funding. He just might say, “Yes.”
More detailed information and useful advice can be found at http://www.funded.com. Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need to access a vast network of business people, entrepreneurs, partners and service providers to help you start, finance and run your business, check out the site.
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- Business Funding | Startup Funding | Angel Investors | Business Plans
Funded.com connects business funding, startup funding and angel investors with entrepreneurs. Funded.com affordably assists business plan writers create investor ready business plans.
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