5 powerful ideas for funding your new business
You’ve just finished crafting a proposal that convincingly presents an awesome idea you have for a new business. You’ve researched the market, crunched the numbers, and laid out a vision for growth. Now you just need to find someone to read it and give you the money you need to get started.
Here are 5 different ideas you should consider when looking to secure funding for your new business.
#1 Friends and Family
While not always the best idea, believe it or not, this is a great place to start. It can be intimidating to ask relatives for a loan, especially ones you don’t normally connect with, but you never know who might have some funds available to fund your great idea. Make sure you give them a clearly written business proposal, explain what you’re proposing, and answer any questions they have satisfactorily. And remember, even if they’re related to you, it’s still important to draw up a contract if the two of you decide to seal the deal.
#2 Development Centres
Many universities have a centre that facilitates your professional growth, connects you with other entrepreneurs, and directs you towards reliable sources of funding. The Business Development Bank of Canada with 118 business centre’s is Canada’s only financial institution devoted exclusively to entrepreneurs. You can also check with your local chamber of commerce for guidance regarding the numerous resources your city might have to help new businesses get off the ground.
There are a number of Crowdfunding sites that have sprung up over the years, and in exchange for a small fee, they will gladly provide a platform for you to pitch your product or idea to the masses, who then have an opportunity to contribute towards your business goals. Take a minute to check out NCFA (http://ncfacanada.org/canadian-crowdfunding-directory/) for a directory of entrepreneurs and investors for available funding sources.
#4 Traditional Bank Loans
You may be intimidated by the prospect of meeting with a banker in a suit, but if your financial life can hold up to scrutiny, showing a reasonable degree of responsibility and success in previous endeavors, don’t be afraid to go this route. Canadian banks and credit unions are eager to partner with you, because your success means a return for them as well.
#5 Angel Investors and Private Lenders
Angel Investors and private lenders are financially established personages who want to contribute to the development of new companies that they believe will be successful. Check out the Angel Capital Association, Angel List, and even the context of your immediate social media network to see if anyone is interested in funding your idea.
Bob Milliken is a master marketer specializing in helping businesses achieve outrageous levels of success. Bob can be reached by phone at 604.270.1730 or by email at email@example.com .