You have a great business venture plan but no startup capital. That could be a problem. But you could do simple steps to make sure that you will get your great business idea the financing it needs. There are simple sources of capital for your business venture:
Bank loans- bank loans are the first thing that a starting entrepreneur sees as an option for funding. Different banks would have different requirements before they agree to give you a funding. It is important to know what kind of requirements they would need and somebody would guarantee your loan.
Government- the government has the Small Business Association (SBA) that would help you get information about the requirements for applying a loan.
Venture Capital firms- are businesses that invests on its equity and would later on expect that a return in the form of buying stocks in the future.
Friends an family- there are starting entrepreneurs that would encourage their friends and family into investing into their business but this would require the entrepreneur to maintain an investor relationship with his friends.
Personal sales- you could start selling your unused items or items that are just in your garage or basement. You might not know it, but you may earn a few bucks from that.
Keep your day job- just because you have a great business idea, you suddenly quit your day job. It would take a long time before you are able get financing. So stick to your day job and it may even help you in having a starting capital.
When applying for a startup capital, whether it is in banks or venture capital firms, having a strong business plan is important. You business plan will be the basis whether the bank is approving your loan or the venture capital firm invest on your business. Therefore you would need a good written business plan.
When writing your business plan, it should start with a mission-vision statement. Vision is important for a business and investors would like to see that. In the business plan, it is also important to state the short term and long-term goals of your business. This would explain what you would prioritize as an entrepreneur.
You should also include market research in your business plan, this would show why your business is necessary. This would also ensure the investors and the banks that you are serious in understanding your customer base in order to provide the best customer-oriented service.
Another part of the business plan that you should not miss is stating the budget and the financial need. This is something that banks and venture capital firms would carefully look at. In this part, they would have an idea where you will be spending the money that they will be giving you.
It would not hurt if you will be stating the weaknesses of your business. Some entrepreneurs would only state the strengths of their venture. But actually, investors are looking for honesty. It is the responsibility of a good entrepreneur to know his business’s weaknesses. You could also devise a plan on what methods or strategies you will be doing to help address these business weaknesses. A good business plan will show how serious you are going to be as an entrepreneur.
When looking for startup capital for your business venture, it is not just about strategizing and preparing an excellent business plan. At the end of the day, dedication, patience, perseverance, confidence and passion is what would matter.