Thought of a brilliant business idea but have no money to fund it? Don’t panic! There are ways to find funding for your startup idea. Keep reading below to find out more!
Every great business starts with a brilliant idea. Whether it’s an idea for a product or a service that will revolutionize an entire industry, inspiration is a great start. But, how do you plan on bringing your vision to life? Or to the market? Unfortunately, you’ll need some capital for that.
You have the idea, the motivation, and the know-how to start a business. But, here comes the tricky part: finding money to transform your idea into a viable business.
Well, there are ways to find money to invest in your idea, even if, right now, it seems like you have 0 capital to get your business started. Here are three tips you should consider if you’re an entrepreneur with a brilliant business idea but have no funding:
1. Test your idea first
Like it or not, the first step you need to follow is to question just how brilliant your business idea is. Think about it: you think that your idea is something unheard of that will sell your offering like hotcakes. You struggle to find money and transform it into a business. For this reason, people should queue in front of your location and buy what you’re selling, right? Well, that’s not how it goes, unfortunately.
Before you go above and beyond to find funding for your business, it is wiser to test the idea and see if it is actually worth the effort. In other words, try if the idea will actually sell and bring you profit. How do you do that? Through market research.
Market research is a great tool to test a business idea before investing a lot of resources in it. It helps you determine if it really solves the challenges consumers have and, more importantly, if there are any interested people who would pay money for it. If no one seems to think your idea is as brilliant as you think it is, maybe it is not worth the effort.
2. Patent your idea
Once you know that your idea will truly sell like hotcakes and there are plenty of customers eager to buy it when it is out on the market, the next step is to patent your idea and secure it from being stolen or invested in by someone else.
If you don’t already have the necessary capital to transform your idea into a business that sells, it is wise to patent it and protect it. More precisely, you’ll have to patent your method of doing business in terms of how the product/ service will look like, work, and how you plan on promoting and selling it.
Once you patent the business idea, you’ll be sure that no one else will be able to use it, legally speaking. Now, you can take your time to find funding to invest in that brilliant idea.
3. Find funding for your business idea
You tested your idea and found out that people want it on the market. You also patented it and secured it from being stolen. You now have to find the money to transform your idea into a viable business that can sell it.
But, how do you do that when your bank account doesn’t look that bright? Well, although it may seem impossible now, find out that there are actually many ways in which you can get the money you need. Here are your options:
Ask friends and family for help
One of the most obvious choices you may have to find funding for your business idea fast and effortless is to reach out to your loved ones. It isn’t something unheard of to lend some money from your family or friends to start a business, especially if you’re truly confident that your business will sell and you can quickly give the money back.
Your friends and family are the people in your life that are the most supportive of your life choices. So, they will also very likely support you if you choose to become an entrepreneur. Don’t hesitate to ask your relatives and close friends for a small loan to get started with your business idea.
Look into your network for a partner
If you don’t want to borrow money from your loved ones, maybe you can find one that is interested in becoming your partner and invest in your idea. The person who joins you in your business will be a partner with the same rights, obligations, and gains as you. And, since you’re doing it with a close person from your network, it should be really reassuring to know that there’s someone to rely on in those dark days of your business.
Get a small business loan
If you can’t lend money from your loved ones, you can turn to financial institutions that offer small business loan options. Such loans provide financial support to people like you who are just starting a business or small business owners who want to expand their startups. You could also research installment loans in Canada, as that could be a better option for your business, given you receive a fixed amount of capital. For a small business, this type of loan can help with covering expenses.
Once you get approved for a loan, you’ll have the capital to start your business in a matter of days or even hours. If you have a good credit score, it should be easy to get a loan and get your business off the ground.
Look for an angel
If none of the options above worked, and you’re looking for a “miracle” to find the necessary funding, look for an angel investor. Angel investors are individuals with surplus cash who are willing to invest in brilliant business ideas. In return, angel investors expect some percentage of your profit. Yet, they will give you the money you need to transform your idea into a business.
Start it online first
If you only have a small amount of money and this is an option for your business idea, and you don’t want to invest too much money in starting your business in a physical location, you can create your business online. It is typically cheaper to start a business online than it is to start it in the offline world. As your business grows and starts making your profits, you can move your business offline as well.
Henry Lares is still early into his career as tech reporter but has already had his work published in many major publications including Tech Crunch and the Huffington Post. In regards to academics, Henry earned an engineering degree from Apex Technical School. Henry has a passion for emerging technology and covers upcoming products and breakthroughs in science and tech.