At some point every entrepreneur needs money. How and where can you get it?
It starts with your dream matched with your personality and abilities. If you do not have the required skills, get educated and surround yourself with people who have the ability to teach you what you need to learn.
People you know will invest in you if you have integrity and can show a track record of hard work and success before you approach them about your idea and need for capital. Put together a document describing your business and how the money will be invested along with intended returns. Your investors will want to know that the potential gains outweigh the risks.
Another option is to take on a partner you can trust who will complement or fill in your skill voids. Two or more partners can be very fruitful in terms of spreading the work and raising capital but will require slicing the ownership pie.
If you are already up and running and are seeking expansion capital, utilize friends and family by offering them interest on a loan or bond. If you need to reach beyond friends and family, take your business plan to your local banker. Venture Capitalists (VC’s) are also very abundant and can provide private funding but will require you to either relinquish some management control or ownership or both. Seek equity partners or angel investors with care if you want to maintain control of your business venture.
A formal prospectus is required for the sale of securities and must be filed with the Securities and Exchange Commission (SEC) and will allow you to raise money via stock sales with an Initial Public Offering (IPO) through a brokerage firm. Be prepared to disclose everything to potential investors. It provides investors with material information about the company’s business, properties, finances, biographies of officers and directors, their compensation, any current litigation, and any other pertinent information.
Above all, be creative and open-minded when looking for funding, and be sure to seek advice from other successful business leaders.