Money: Where to Get It
You've got a great idea but you don't have any money. How do you find the financing you need to start your new business?
Most new businesses are funded by the founders, from their personal funds or by using personal assets as collateral for a loan.
If you don't have enough of your own money, you will need to use OPM (other people's money). Many businesses are financed by loans from family and friends, by bringing in a well-heeled partner or (shudder) by using credit cards for needed funds.
A well-written business plan is essential to raising the capital you will need from traditional lenders, venture capitalists or angel investors. You want to show potential lenders or investors how their money will be used and for what purpose. Your plan should be so detailed that it answers every question an investor may have but "Where do I send the check?"
Investors look at the people before they look at the idea. The entrepreneur will make or break the business and investors want to insure that their money will be returned to them at a profit. You will need to talk intelligently about your industry, answer every question posed to you about your business idea, and offer an insider's insight to bolster the confidence of an investor. Arm yourself with more information than you will need to be completely prepared.
The resources listed here are full of contacts to help you find money for your business, but you will be dealing with strangers. Before you do that, start talking about your business and your need for financing to everyone that you meet. It's just possible that someone you know knows someone who has the money you need. Doors to opportunity can open anywhere, so start talking.
Where to find business financing help online:
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