How can you gain the business funding you need and want?
Even the greatest innovations, must-have products, and disruptive services everyone on the planet should want, need funding.
Without working capital the world won’t get the chance to discover that you are offering what they’ve always wanted and needed. You can’t scoop up the top talent, or enjoy the same great profit margins that provide competitors the advantage.
So as a startup entrepreneur or small business owner; how can you turn this around, gain the liquidity and cash you need, and take your venture to its full potential?
Business Loans for New Startups
Those that have already tried walking into a local bank branch to ask for a business loan know just how futile it can feel to try and get funding as a brand new venture, or for any company that hasn’t been established for at least two years, with a proven track record of profitability. Obviously this seems like a ‘chicken and the egg’ situation. As a business owner you need money to grow and want to minimize taxes, but that might not look great on paper, and without the funding you can’t get to where you want to be.
Chasing Venture Capital
Mark Zuckerburg seemed to make chasing venture capital and “getting funded” cool. It can certainly be an adventure, but it can also be a long, tiresome mission. It isn’t cheap either. There are hundreds of emails to be sent and calls to be made. And that’s after heavily investing in research, pitch decks, business plans, writers, testing, and more. Passion and a great product idea only gets you so far. Even those that have made it onto the Shark Tank TV show have quickly found how much competition there is, and how demanding angel investors and VCs can be. For many this is simply a path of endless, and expensive detours from doing real business.
What about crowdfunding? Crowdfunding became cool a couple years ago. It has even proven to be useful for fundraising for developing new tech gadgets, publishing books, and buying burritos. While it may be a solution for some to raise cash from the crowd, 50% or fewer campaigns actually get funded. Most simply drastically underestimate the time, strategy, marketing, PR, and other investments it takes to actually pull off a successful crowdfunding campaign. And this marketplace has become seriously overcrowded.
So what’s a better strategy?
Your Quick Business Funding Checklist…
Business funding may not come overnight, or by the billion, but there are easy, practical steps that individuals can take to swiftly expand their business credit and working capital.
Organize your business. Incorporate, file an LLC, or establish another legal entity to create an entity which can develop its own credit.
- Establish Credibility
Whether sole proprietor, co-founder of a hot tech startup, or president of a newer real estate investment firm; business credit and funding is all about credibility.
Whether you want to win offers on Shark Tank, or sell lemonade by the paper cup for a quarter you’ve got to have credibility. In an exclusive interview via GCode Magazine, JP Maroney, founder of Harbor City Capital explained how he was able to raise $100M in under 12 months simply by growing and leveraging credibility.
This means becoming visible, known, and trusted.
- Build Credit
While it might not sound as exciting and instantly gratifying as being bought out by Facebook for $1 billion; you’ve got to start somewhere. Take the right steps in building creditworthiness and you’ll be turning down dozens offers of funding before you know it.
For some this might start with personal credit repair, for others it means getting an initial business credit card or two, or business line of credit, and scaling from there.
Ready to grow your access to working capital?