If you have an idea for a start up that is in its early stages then you are probably already aware of the vast sums of money which you are going to need to not only get your business idea off the ground but also to forma solid financial foundation for future success. When it comes to business finance, a solid footing from the word go is incredibly important and something which my friend and financial whizz-kid Eugene Bernshtam regularly reminds me of whenever I am looking at starting new venture. If you are looking to get your hands on the cash for your idea, here is how to do it.
You could save up the money yourself in order to start your business and there are pros and cons when it comes to the idea of bootstrapping your company. From a financial point of view this makes a lot of sense as you will retain 100% ownership of your company and you will have no debts whatsoever in the business. With that being said, unless you were a trust fund baby you will have to work extremely hard on saving up the money which you need and this could lose valuable time for the business, during which time someone may have gone ahead with the idea that you had.
Whether you are looking for an angel investor or a bank to give you the money to get your idea off the ground, you are going to need a water tight business model. Both banks and investors will want to see a comprehensive breakdown of how you plan to run your business, who you will sell to, how you will sell, plans for growth as well as the ultimate question of how you will turn a profit. You should spend a great deal of time on your business model and make sure that it is backed up with a great deal of research before you try to pitch to anyone.
If you are looking at getting investment for your company then you are going to need to put yourself out there when it comes to finding them. If you truly have the desire and confidence that your business can be successful then you need to find people within your industry who have money, once you have found them you should stop at nothing to get in a room with them where you can present your idea. Make sure that you have a deal in mind regarding investment and that you already know what you will do with the money which you receive. Investors want confidence and a solid plan for success before they will part with a single cent.
Ultimately, paying for your business comes down to confidence, knowledge and drive and if you want to get your hands on the cash then that is what you will need to have.