If you’re looking to start a business or a project, the chances are that you’re going to need funding. Asking people for money and finding the funds you need can seem like a daunting process. But it’s not impossible.
Instead of waiting for that one big investor to pop up, you should diversify how you gather your funds. It can be a lot quicker and you can pay off individual investors a lot quicker.
1. Have a plan
Before you approach anyone, you need more than a ‘pie in the sky’ idea. A good idea is a useful thing to have, but a plan on how to implement it is better. Know how much you need and how you need to spend it.
Show how you intend to get those returns in detail. Make sure your idea has a market and a unique appeal to it. The more prepared you are, the more attractive your proposition will be.
If you’re serious about it, then you need to be willing to invest in it yourself. People don’t want to see someone who’s not willing to take a real risk on their own proposal. A little share of your savings isn’t enough.
Consider freeing up funds through means like loans for homeowners. Just make sure that you pay yourself back first to mitigate the risk of your contribution before others.
3. Network long and hard
You’re going to have to get out there and shake hands and talk face-to-face with people. Don’t be duplicitous about your intentions on networking with investors.
Be upfront about your intentions, but don’t rush to discuss the nitty gritty details. Let them get to know you. Introduce yourself as a person to them before introducing yourself as an investment opportunity.
4. Comb the funding databases
There are a lot of other ways to get funds, too. There are whole databases of foundations who you should be writing applications to.
A lot of them will only accept non-profit projects. Others, however, will be more willing to help if your idea fits their goals. For example, you might get funding if you’re willing to take on disadvantaged workers or contribute some of your efforts to a cause.
If you have a truly innovative idea and a plan for it that can be enough to help you be of intense appeal to a market.
If the market wants to see you out there, succeeding and providing what services or products you have, it might be all the support you need. Take a good look at your idea and whether it might be a fit for crowdfunding.
It’s not a method of getting funding that a lot of people will immediately think of. Competitions take effort and time to enter and there is a good chance that you won’t win.
However, if you do, you don’t only get the funding. You also get the branding and seal of approval of winning that competition. That can serve as an accolade that only helps your business succeed.