Listen, Entrepreneurs: Here’s How to Find Funding…
There’s been plenty said about how hard it is for small businesses to get loans. How about entrepreneurs raising capital? Lucky for you, we ran across an article in Forbes and Entrepreneur magazine today that offers a decent list of creative ideas.
You can check out the entire article for yourself, but here are some ideas from Forbes to get the creative funding juices flowing:
- Partnering with another company through a research and development limited partnership
- Applying for government grants
- Obtaining venture capital funds
- Using public or private equity placement
- Seeking out angel investors (private business investors)
Here are some more funding tips from Entrepreneur magazine. These specifically relate to getting funding from friends and family, also known as angel investors:
- Don't be afraid to ask, carefully.
- Be upbeat and respectful.
- Be passionate about the idea.
- Demonstrate progress and your own "skin in the game."
- Ask for the minimum rather than the maximum.
- Communicate the risks, and write down the agreement.
- Show some incremental value along the way.
- Network to build investor relationships before you ask for money.
- Don't think of friends and family funding only as a last resort.
Finally, check out this YouTube video for some fresh ideas. And be sure to share any ideas you have with us in the comment box below.