10 Ways For Finding Funding

You need money to finance the start up or growth of your business. Who are you going to call?

How do you finance a business in 2010?

1. Look in your own bank account.
As in the past, entrepreneurs will expect to fund part of their new business from their own wallet. It is the only way to truly get started. It does not matter how much it is, only that it is significant to you. It also enables you to respect other peoples’ money too when you take theirs.

2. Talk to your friends and family.
This is the all time favorite place for funding of start up businesses. The good news is that they will invest because they love and care about you. The bad news is that it’s not a lot of fun to lose their money and may change your relationship with them forever. On a bad business day, you will never be able to truly answer their question “How is the company doing?”

3. Find a customer that believes in your product and you.
Traditionally, businesses have started because someone asked another person to do something and was willing to pay for it. Find that person who will pay you to solve their problem. You will have an instant business, and they will put you in business.

4. Talk to your accountant or attorney.
They will be able to give you excellent referrals since they deal with “money” people all of the time. They should be your first referral source. Ask those referrals to give you three more names and so on.

5. Find a Mentor.
Find someone that will help you spread the word about your business. They should share your passion and vision and be your evangelist to the world.

6. Network.
Attend seminars, go to events, and talk to anyone that will talk to you on Twitter, Linkedin and Facebook. A strong referral is the best way to get in front of the right people. Also, keep these people up to date on your progress even if you do not need resources from them at this time.

7. Submit your business plan to business competitions.
There are many groups that allow you to post your business plan on their Web site and utilize their Web site for review by potential investors.

8. Contact Angel Groups and other area resources.
There are several excellent national and regional groups. There are an endless number of resources online to help you learn more about attracting capital and funding.  A national list of angel groups is at www.angelcapitalassociation.org

9. Achieve Business Milestones.
Nothing gets money like business success. Investors want to put their money in businesses that have achieved their targeted milestones and show a promising future.

10. Attract an Excellent Management Team.
Investors put their money in people, not a business. The better team you have, the more money you will be able to attract. Get people on your team that have industry expertise and that have been there before. Investors want track records.

What has worked for you?