How to Get Funding for a Business Idea

Having a great business idea is only the first step. Often you will need to invest some money to turn the idea into reality. Finding funding for your business idea can be difficult but with planning and research, you can acquire the money you need.

Things You'll Need

• Business Plan

Instructions

Instructions on Getting Funding for a Business Idea

1. Determine how much you need to get the idea to market. Create a budget and think of everything that you will need to spend money on. Such things as manufacturing, legal costs and marketing should be included in your budget. Estimate on the high side and plan on contingencies.

2. Make a business plan. You will need to present this plan to banks or other investors to get financing. Describe your business in detail, explain your marketing plan, detail your current finances and give information about any partners you will have.

3. Practice your speech. Know your business plan well and be prepared to present it at any time. Anticipate questions you may be asked from potential investors.

4. Start with family and friends for funding. Your family and friends know you well and want to support you. Share your enthusiasm for your business idea with them. If they do want to invest, make a formal business agreement.

5. Try traditional banks for financing. For new businesses that may be difficult. Try smaller banks or credit unions that cater to local small businesses. Consider using your home equity to finance your business idea.

6. Seek partners for funding. A partner with cash may be what you need to get your idea going. Choose partners carefully. Be certain you can work together. Look for partners who have skills besides money to contribute to the business.

Tips & Warnings

• Network with other business owners and local chamber of commerce to find people with money to invest in your business idea.

• Be careful with who you share your business ideas with. Have people with whom you share your ideas sign a confidentiality agreement. Consider copyrighting your idea or product before sharing it with others.

References

• Small Business Administration: small business planner

Resources

• Read this Article in Spanish