Have a big billion-dollar idea for a new business? Great!  Now what? How do you get the money to get it out there?

 

So, inspiration hit you overnight and you found the most brilliant business idea that will certainly be a big hit. You already see yourself being a famous entrepreneur, the business grows, people are buying, and everybody is winning. Now, getting back to reality, before you start fantasizing about how successful your business will be, you need to actually start it. This means that you need money.

 

The good news that there are quite a few places to get funding for your business idea, and many of them are frequently overlooked. So, you’ve come to the right place to find out how to find money to invest in your idea.

 

Check your savings

Often called “bootstrapping”, financing your business idea with any personal funds you can find is often overlooked by aspiring entrepreneurs. Why? Because it often seems a “too obvious” idea to be taken seriously.

 

You’ve probably checked your savings by now and thought that there is no way that the amount of money will be enough to start a company. However, how about you check your savings twice? Today, starting a business is a lot less costly than it used to be before the digital era, especially if your business idea can easily be an eCommerce business. For example, starting your business online eliminates costs such as the rent of a storefront, the cost of equipment, and the costs of staff members.

 

Now, even if you can’t start your business online, there’s still a good chance that your savings are enough to finance your business idea in the beginning. So, our advice is to reconsider the costs involved and your savings and see if there’s a way to use your personal funds to start the business. In fact, this can be extremely beneficial since you won’t have extensive loans and monthly payments that might bog you down.

 

Ask your friends and family for help

Asking your friends and family for money may seem like a challenging idea. However, if you must bring an outside source of money for your business, asking those closest to you for help is often the first step you should make. Plus, let’s be honest, it can never hurt to, at least, ask.

 

While your relatives may not be in the position to finance all the necessary costs for opening your business, they might still be impressed enough by your business idea to toss you some money to help you get rolling. And, if you have some savings yourself, with the money you get from your friends and family, it might be more than enough to get your big business idea on the market.

Get a business loan

So, you’ve checked your savings account. You’ve asked your friends and family for money and even tried to convince that aunt or uncle that you only see at Christmas family gatherings once a year to fund your business idea. Still, you’ve had no success in finding funding. Yet, it isn’t quite time to despair. There are still a few more external sources of money that you can turn to, including getting a loan.

 

Make sure to compare different loan providers before choosing one. As the experts from Smarter.loans explain” When taking a business loan, it is essential to work with a loan provider that understands your needs as a first-time entrepreneur.” So, make sure that before applying for a loan, you explore all the options you have to choose the best one.

 

Take a side gig

Or work some extra hours at your current job. Yes, we get it, working twice as hard isn’t really the dream of an aspiring entrepreneur. But make no mistake, all successful entrepreneurs struggled with money in the beginning and worked harder to get the money to finance their business idea.

 

So, like it or not, you may have to get an extra job or work some extra hours at your current job to earn more money that you can invest in your business. Now, although most side gigs aren’t going to fund your business idea immediately, over time, the income you earn will add up quickly.

 

There is a multitude of side gigs you can choose from including becoming a freelancer and using your skills to earn some extra bucks. Moreover, in fact, getting a side gig in the business landscape may also be a great way to teach you more about how to open and monetize your business idea. Simply put, it may not be only a source of income but also a great learning source.

 

Look for investors

If your business idea is so brilliant and you are 100% sure that it will be a big hit, chances are that you aren’t the only one to see its potential. So, there will definitely be at least one more person interested to put some money in it to see it on the market. Now, all you have to do is to find that person and partner with them.

 

However, although your business idea may sound very promising, no investor will put money in it unless you show them a real business plan and some positive numbers that will convince them. So, before you go out there hunting for investors, turn your business idea into a complex business plan. This will explain exactly what you will be selling, what you plan on charging, how your business will make money and, most importantly, how much profit you expect your business to bring.

 

Once you have the numbers that will appeal to investors, do some networking to find those potential investors. Ask other entrepreneurs in your network, your friends and family for recommendations, and get online and look on social media networks or websites designed to help entrepreneurs make connections with interested investors.

 

Finding funding for your business idea can be the most challenging part of getting your business off the ground. Yet, once you find the money you need to start it, it will be the most rewarding part.

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March 31st, 2020 by financetwitter

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