Investment Options for Entrepreneurs
Have you been bitten by the entrepreneur bug lately? It seems to me that every time I turn around one of my friends is telling me of this great new business idea they have and are starting up from their home. We live in a time when starting up your own business has become easier than ever. With marketing on the web and mobile payment options using only your smartphone, it is easier than ever to start up that dream business.
But even the simplest of businesses need a bit of start-up cash to get them off the ground. If you have ever had to borrow a few bucks until payday from your friends, you know how hard it can be to ask for someone to invest in your idea. We all wish we had a rich uncle or two. But you don’t need a relative with deep pockets to get your business idea off and running. What you need is a plan. Here are a few.
The Friends and Family Plan
This is where most small start-up businesses get their cash and it is for a good reason. These are the people that know you best. They know how much this idea of yours is not some crazy shot in the dark but the end result of a long passion. They know if you are the kind of person who is capable of following through and making this work. For this reason, if you really do have all your ducks in a row when you go to them, they are probably the best bet for funding.
So, if you do plan to do this, make it a proper pitch. Do your business plan, show them why you believe you can succeed with this, and how. Don’t plan to do a passionate speech and then stand there with your hand out. This is a partnership if they are putting up the cash. Treat it as such and you can make it work. Justify their trust and you can get your dream up and running and bring them along for the joy of it.
Talking with Your Banker
If you have been running this business of yours on a shoestring budget out of your kitchen table, then you may have a good relationship with your local bank. Heck, you may even have someone at the bank you deal with on a regular basis who has been helping you with vendors and setting up lines of credit. Now would be a good time to talk to them about getting a business loan to bridge your next step. But don’t expect them to do it out of the goodness of their heart.
They will expect to make money off this loan, so be sure you can afford it. Just as you want to present a good business plan to friends and family, be sure you can give your bank a well thought out presentation of what this investment will do for your business. Moving from something you do part time after work and on weekends to a full-time investment must be obvious when they look at the numbers. And numbers are, after all, all they are interested in. But if you have that relationship already, they might be a good place to look for expansion money.
Either of these two options are a good place to start when looking to either start up your very own little business or expand the small lifestyle project you have grown.