Entrepreneurs and even the average Joe would rather receive funding and back up investors for their business than put their entire life’s savings at risk. In fact, it is better to pull a loan you can pay off or even get an investor who believes in the idea, than handle it all yourself and stay up all night figuring out how you’re going to make balance both your business’s checkbook and your personal checkbook.
For some businesses, funding is all they need to really great started and let their business plans come to life. No matter what the economy may be, receiving funding is a great way to kick start. Consider some of these three ways.
Ask the Bank
Although as any independent investor, the bank wants to know your business plan. Make sure you have one prepared and if you have a business mentor, have them take a look at it. If they aren’t that thrilled about it, they want to see who the individual behind the idea and business is.
Do you have a good credit score? Are you reliable? The question you should also take into consideration is how much money are you asking for and does it seem realistic compared to your business plan? Think like the bank, as they don’t want to waste money.
This has become one of the most popular ways businesses have received the financial backup they need. In fact, many average individuals that don’t even consider themselves entrepreneurs have received funding just for their idea. After the thousands and thousands of dollars in funding they have received from people all over the world, their ideas have turned into valuable and running businesses.
Websites such as KickStarter and GoFundMe have changed the way fundraisers and business ideas have operated and excelled. It is also essential to maintain a high online presence. Publish your profile on websites such as Enthuse and LinkedIn to gain more popularity and reach a broader audience. This will allow your business or idea to raise more money.
One of the biggest mistakes businesses do is have their bank accounts empty when the end of the year comes along. Unless your business is a non-profit organization, this should never happen.
Your business should always have a savings account and look to save every penny where it can.
At the end of every month, take a look at your business’s costs and think very realistically, where can you cut? Do you really need a subscription to something your business never uses? Did you really need to purchase 20 whiteboards, or couldn’t you work with 10?
As your business saves every dollar, the remaining money should be invested back into the business and its ideas or expansion.
Robert is a small business owner and investor. He owns and operates a business due to his love for food and giving people an enjoyable dinner. As an investor he keeps up with the latest news and companies by his online profiles on websites such as Twitter, Facebook, and Enthuse.