Getting Investment Capital For A New Business

 

You have a great idea that you truly believe in and are willing to sacrifice a lot of time and energy into. The problem is you lack working capital to make your dream a reality. So do you give up? You can, or you can get money from those who have it. Most companies did not have the millions of dollars to start a huge conglomerate like Apple or IBM. These companies started out by ringing in investors and no investor is too small or too big for your start up. Here are some ways to raise capital the old fashioned way, and the new way.

Business Investors

Business investors are individuals or groups that invest in businesses that are just starting up. In order for them to invest in you, the are going to require a piece of the pie. How big of a piece is entirely up to them, but you always have the right to deny their offer as well. There are few things that you will need before anyone with any real clout will invest in your business:

Business Plan

A business plan is an organized plan of action to bring your dream business to reality. It includes your expenses, income projections, and the amount needed for start up. It should also include a 3, 5, and 7 year projection that shows how and where your company will grow.

Product/Service Display

People need something physical to touch or a picture to show your service. If you do not have a prototype or a brochure to show your product or service, investors will walk away.

Gaining these investors is extremely important to you so treat them as if you cannot do this without them, because you probably can't. Business investors are looking for viable business partners. If you can show them that you are going to be a good business partner, you have a better chance of gaining some working capital.

Grants

Grants are easy to apply for and just as easy to get turned down from. However, it is worth the hour it takes you to write a professional letter to the government and fill out a grant application. http://www.grants.gov/applicants/apply_for_grants.jsp is a free website that allows you to register and gain access to all of the government grants available in order to choose the grants that are most applicable to your business.

Social Media

Social media connects millions of people world wide. A simple Twitter, Face book, or Linked In post could bring new investors to the table that you may have never thought of. Do not take for granted the huge audience of social media and the power it holds in numbers.

Blogging

Free blog services allow you to write a blog about your idea. Let others find you and give you feedback. If you can't get funding from anyone, there is bound to be some individuals that will comment on your blog and tell you why. This may hurt, but criticism is honest and should be looked at constructively and not personally.

All of these methods are great ways of raising working capital for your new business. Who knows, maybe you will be on the cover of Forbes Magazine someday giving every else advise.

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