New business ideas are exciting. It’s invigorating waking up every day, inspired by what you believe to be a product that will change the way consumers think. But, unless you have startup funds, your vision will yours and yours alone.
There are many ways to find investors. Not one answer is right for everyone. It’s important to approach this part of business building as patiently and thoroughly as you have every other mental step. Don’t jump into any outreach too fast. Read through all your options, and then reach out to what seems your best solution, knowing you may have to go down the list over time.
Bank or Credit Loan for Startup Funds
This is a good choice if you have other thriving businesses and are looking to launch another one. However, if you’re starting your very first venture, be prepared for banks to deny you a line of credit. If you have a truly extraordinary concept, financing receivables in Appleton, WI, may take a risk on you. In that case, you’ll be asked to put up some serious collateral, or link your business to your personal credit. Tread carefully, because if your idea tanks, so does your personal credit score.
Invoice Factoring Startup Funds
Invoice factoring, otherwise known as invoice financing, is a way to generate immediate capital based on your open invoices. Essentially the amount of funding that your startup is eligible for depends on the invoices you have sent out. It doesn’t require a minimum time of being in business, and the amount of funding your startup is eligible for grows with your sales.
This is a fancy way of saying that you’ll swap services with an existing company to minimize your upfront costs. Office space, computer networks, graphic design, and website building are primary examples of how you might use bartering to get started.
Seek a Major Investor
You don’t have to go on a TV show to find a serious backer. Make a list of customers who love your product. Think of larger companies who may want to carry it in their inventory. Pitch your idea well and a factoring broker in Appleton, WI, might just be willing to invest now, banking on future financial rewards.
Write a Compelling Business Plan
Venture capitalists love a good business model. They want to know you’ve done all your homework and done your best to account for all the potential pitfalls along the way.
Team up with Others
It may seem counter-intuitive to share your idea with others, after all, it’s your baby, but don’t be afraid to join a startup accelerator group. They’re popping up across the country based on the age-old notion that many hands make light work. Everyone has different mindsets, problem-solving skills, and real-world connections, not to mention their practical skill sets.
Your angel-investor may be local, or not. Global marketing is the new normal, reaching millions of people who share your goals. Start a fundraising campaign online and you’ll be surprised what you raise.
Apply for a Small Business Grant
As a brand-new company, this is a wonderful option. Grants, in general, are excellent sources of capital that you’re not required to pay back. Keep in mind that grants are taxable income, so if you pursue that tack, be sure your company stands to make enough to support the amount of the grant.
Using your personal money to fund your project is always an option. If you’re blessed with family and friends who want to support you, this may be a good starting place. Just remember, think of your investment in yourself as you would any other investment; only spend it if you’re willing to lose it.
Whether you self-start or apply to invoice factoring companies in Appleton, WI, believe in your idea and success will be yours.