If you have a great business idea for a site, your first challenge is to find the money to get started. It is a myth that great ideas are easily funded! This article will give you ideas on how to get funds. Each of these ideas would have their own advantages and disadvantages.
1. Bootstrapping
Using your own savings is a great idea, since it saves you the time and effort of finding funds. But obviously this is not an option if you do not have enough savings! Whatever you do, DONT quit your day job unless you are sure of your business.
2. Family and Friends
Next to your own savings, it is the easiest to get funded by people who know you well. You can use this route even if you do not have a single customer yet. Outside investors would need to see a lot more before they consider funding you.
3. Business Grants
The Obama administration has made a lot of initiatives to encourage small business start ups. This may not be the quickest route, but government grants have the advantage that they are not interested in ownership deals.
4. Loans
If you do not need a very large amount, you could think of loans. Most people wouldn’t want the burden of a loan payment every month, especially if it is a start up business. But if you have no other option, and you are confident about your plans – why not?
5. Startup Incubators
These are companies, universities or organizations which provide resources to help young companies get going. The resources could include office spaces, consultations, and sometimes cash management.
6. Angel Investors
If you need say 25-250 thousand dollars, you could get in touch with a local angel investor. If you do not have a network which helps you connect to an angel investor, you could get in touch with a consultant. The key word is networking! Find an investor who truly shares your passion for the industry.
7. Venture Capitals
This is probably for the higher budget startups, say over a million dollars! Funds coming in from a venture capital organization are usually expensive as far as equity goes. If you take this route, don’t expect a quick solution. It could take about six months to organize it.
8. Bartering Services
Bartering is usually associated with an exchange of goods. It usually does NOT include the transfer of money. One example could be the exchange of office space for a service such as property management. If you are looking at such an option, do take advice from a consultant before you close the deal.
9. Partnering
A well established organization could see the advantages of your idea better than anyone else. why not approach such a company to partner with you?
10. Customer Commitment
If you can get hold of a customer who would benefit from a large number of your products, you could request an advance payment.
