There are so many business ideas that have never been implemented due to a lack of funds. The answer is not that the funds are not there but they are plenty within our localities. The problem is knowledge about the available resources, the type, and how to process them.
You can have a big idea for a business that can generate millions of money but if you lack the necessary knowledge then it can never come true. Having the right path can lead to greater achievements.
The main task as a business person is to evaluate the needs of your business. This way you will be able to established better preparations to start your business. You will be able to know what is available for your business already and what is still needed. This means you can as well go miles by a single step in business.
In business, what works for other businesses may not work for your business. Financial choices will always affect how you will run your business in terms of structure.
How to Generate Business Ideas
Coming up with a business idea can be quite challenging for many, especially if you are just starting a business. However, when you understand what type of business you are interested in starting, and have a well-planned business, then you should be able to navigate the challenges to finding the ideal business.
Technology has simplified the process of sourcing funds in a way that you can visit different sites researching for funding organizations where you can make some conclusions and visit your choice at their physical location if possible. Everything is found on the internet through various channels.
Sourcing these funds can be governmental or non-governmental depending on your choice. With the loans try always to consider interest rates. Some are high in that you can pay forever. This means your business can never grow since every now and then you are paying unending debts from business revenue.
Business is all about money. You can use the money to look for money. This means you need money to fund your business idea. This article is here to evaluate for you ways to sources your funds where at the end of it you have the ability to identify which type of fund is right for you.
This is a situation where you evaluate yourself to see if you can start the business by funding it yourself. In this case, any resources can be donated by you. Some tools that a business needs to start may include items that you have at home and are no longer in you. This also includes; your savings account, credit cards that can be valuable to the business.
This type of fund is the best if you can afford it. This is because anything generated in the long run can be directed to business expansion. It is very flexible in that we assume the business has got no debt like loans hence giving it a flexible environment to grow.
However, the above reason may depend on the type of business you are operating. Some ideas are larger in that they require a lot of capital. So this is the situation where you may consider external resources to make it grow as faster as possible.
How to come up with a business idea
How to come up with the ideal business idea may require a lot of work on your part, however, this section should help you break things down so you can understand how to go about your business idea. There are several ways that you can approach the concept of coming up with a business idea for a woman. However, knowing how to navigate the initial startup challenges can help you stay in business for the long haul.
When it comes to starting a business, you have to basically have a clear idea of what you want, and how to get what you want. However, without having the right funding, your business may encounter challenges that can be quite hard to navigate. Therefore, what you should do in that case is to keep an open mind. This can be helpful when you start your process of applying for grants.
Friends and family funding
This is a process of pitching your family or friends about the business idea you have. If they can buy your idea then this is a great chance to source funds from them. This is not free money anyway. You ought to try since no one can hurt you for asking. In this type, you need to have your business plan at hand so that you will be able to explain what the business is all about, the future plans, and revenue generation prediction. From this point, you will be able to as for either loan from them, investment, or a gift. Whatever the case the donors should expect something from the business at the end of it all. The secret of sourcing funds from this type is by spending much time pitching those who are closed to you and you also trust them. This is because if they are not in a position to help at that time they can do it later but also they can help you source the funds from other alternatives.
The pitching can be well demonstrated during family gatherings where most of the potential investors may be available at that time. In most cases, a YES is always the answer for those who buy your idea where you can later do a follow-up for it to be implemented.
Alternative sources for funding
These alternative sources are available, especially for small business start-ups. The capital required for a business can range between $25 and $5,000. In the US micro-organizations such as Kiva and Accion provides loans for start-ups for small business owners.
Some of these micro-finance only provide loans to people living within the line of poverty. So consider visiting their websites to check for eligibility criteria before applying for them.
Crowd-funding sites such as Kickstarter and IndieGoGo are becoming very popular in funding small business start-ups. This is by proving you with a platform to raise funds for your business through the internet within a specified period of time. For the case of a Kickstarter, they only allow you to keep the money if you meet the target of the amount you needed while for IndieGoGo they allow you to keep anything you raise in the process. More information can be found on their websites through; maximizing your crowd-funding campaign.
In some cases, these websites may ask you to pay a small fee for you to have an account on their websites. This account is what you will use to conduct campaigns or fundraising for your business.
Others may give you a free account where a certain percentage of the amount raised will be later deducted from your account. So you have to aim for more than your capital.
Source from local programs funding
These programs can be checked out through local business development centers. These centers may provide you with funds by connecting with a group of entrepreneurs who together network towards reaching out to angel investors. They can be local or international investors. To achieve this type you need to look local in that you are able to mingle and interact with other local business-minded people.
In almost every university they have these platforms for business-minded people where the Small Business Administration has got about 63 of them across the country. This platform also provides information concerning the best type of loan/funding your business is best suited for. Not only do they help you determine what loan you qualify for but also helped you in the application process. This increases the chances of you getting the funds you need.
You may also consider visiting your local chamber of commerce since they may provide you with some information to where you can some funds even locally.
As you consider these organizations, just note that many large cities have brought up some programs that help in bringing business into the community.
In this case, you should be able to demonstrate that your business is ready to generate some income. In recent days Bank of America and Wells Fargo have announced a commitment to supporting small businesses by providing loans for startups. These loans range between $5,000 and $50,000. So if your business falls within the category, you may consider visiting these banks for more information.
So having a business plan will help you predict the behavior of your business and make business tracking even after the startup process. Before choosing which bank to a loan from, please consider their rates in that they are friendly and provide enough period of payment. By this, your business will have a conducive environment to grow as you pay back the loan.
Most banks have a business advisor individual. So it’s good to create time with them so as to help you provide more information concerning the amount you are yet to take in.
Angel Investors funding
This type is mostly applicable to large businesses like tech businesses. This is because you may need to hire people with bigger offices and tools. In this case, you not only need to rely on local investors but also major with outside investors. Angel investors are the best since they provide funds between $10,000 towards millions of dollars.
To reach out to Angel investors, you need to network with other local entrepreneurs or by visiting their website at Angel Capital Association.
The website has got over 330 angel investors who are ready to invest in businesses that are predicted to generate large revenues.
English is also another website where you get connected to investors who might be interested in your business idea. This website has already helped over 1ooo entrepreneurs achieve their dreams.
In some cases, Angel provides funds and loans to new entrepreneurs by hosting a national competition. This event always increases networking opportunities between investors and business people.
Venture Capital Funding
This involves some serious funds like $1 million and above. For you to be considered you need a well-organized and serious plan, obviously no one is ready to lose such amount of money. So demonstrating the ability to have a sustainable income from the business is what is required. Venture Capital (VCs) always invest in a few different business ideas for their clients where they look forward to having the fund back from one or all the businesses. In this case, you need to work on your business in order to stand out since there are many business people out there looking for funds.
The main target of VCs is to make a good return through their investments, somewhere like 3-10 times the amount they provided. They expect the experience of this return within 5-7 years from the period of investments.
VCs are strategically planned as so as your business should be. You can easily meet these investors by a simple introduction from your fellow entrepreneurs or through other investors.
National Venture Capital Association is the website where you can also get direct contacts and start pitching your business to the available investors. This is a hard task to risk but the best source of funds is if succeeded.
Having learned the major ways to fund your business ideas, you should be in a position to choose the right and ready to launch your business.
What you should have in mind are the ways to market and grow your business. You need to prove to your investor that you were on it to win. It doesn’t matter which kind of donor, be it yourself, family/friends, loan, VCs, alternative sources or Angel funding your main task is profit.
Your business Idea can be your dream job. You can employ yourself not as a CEO but a qualified staff to work in a certain department as ahead. This is all about self-discipline whereas as a leader you need to set a good example for other staff.
Time is an essential tool in business. Start to keep time by evaluating which kind of funding suits you as early as possible so that in the next coming days you should be ahead in some steps. Some funding organizations are guided by a certain set of rules where they take in applications during a certain time and the release of funds is also done at a certain time. This means you should start as early as possible so as to be within their timeline.
Starting a business is not something to deal with in minutes. It is a process where you need to work on it day and night with patience and tolerance.
At the end of it all, your business should be able to bring some difference in the world like influencing other entrepreneurs.
Finally, business is all about the courageous business person. The business has got its ups and downs. You should be ready to face the challenges that may arise during the business periods by handling them in a professional and courageous way. Since mistakes can’t be avoided, be ready to learn from your mistakes for the betterment of your business growth. All in all, no giving up easily.