Oh, where, oh where is the money for starting a business? You’ve looked in all the logical places — the bank, your credit cards, your rich uncle — and nothing is working.
So what do you do now?
The trouble is that EVERYONE looks to the SBA and the bank. Your competition there is just ferocious. And they really don’t like startups. So try looking in places where few dare to go …
(1) Create A Partnership With BigCo
Big companies have money. Big companies have lots of money. What they often DON’T have is a solution to a vexing problem. And that is where your company comes in.
Provide a solution to a vexing problem that BigCo has, and you will have more money for starting a business than you know what to do with. And this doesn’t have to be a major scientific breakthrough. For example:
BigCo wants to hire more women, but women are reluctant to work for BigCo because there is no child care center within 20 miles. So provide it through this url.
Several restaurants in the vicinity of BigCo have gone out of business, and there is nowhere for employees to grab a quick, tasty lunch. So provide it.
Instead of having its usual big holiday bash, BigCo wants to tone it down, maybe to a snow party for the family. So provide it, and several more corporate gathering money saving options.
Each of these ideas means that you present a well thought out proposal to BigCo. Demonstrate clearly how you grasp the problem, and how you can solve it. The money that BigCo lends you to get started is a pittance on its balance sheet, but it can mean the difference between a solid business and no business for you.
Planning, Financing, Legalities, and lots more in START-UP RIGHT NOW.
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(2) Create A Partnership With A Big Player In Your Field
In this scenario, BigCo might be a shoe distributor, and your company creates unique sandals. If your sandals are truly unique, BigCo will likely be glad to help you set up shop as long as they get the exclusive on distribution.
This is a very creative approach to finding money for starting a business. Brainstorm to come up with ideas on which companies might be affiliated with you, but not competitive to you. Then, again, present a strong case for why BigCo would benefit from helping you get started.
(3) Put An Angel In Your Pocket
Finding an angel investor is a real skill. If you can do this, you can do anything in business, so look upon it as your Ultimate Business Challenge.
Begin by presenting at angel groups. Talk with anyone who will talk with you. Follow every lead. Look to leaders in your industry’s associations. Haunt trade shows in your field. There are whole books written about angel investing. You are likely not looking for high tech complicated stuff, just someone with money who believes in your concept.
Have a formal business plan ready. Have a formal oral presentation ready. You never know when you will need either one, so go prepared. Be ready to compromise, and to negotiate. When looking for money for starting a business, look at all options available
(4) Open Up The Bank Vault
There is one sure way to grab the attention of bankers: be a successful company. When you need money for starting a business, no one is around. When you need money to GROW a business, there are lots of options. And the bank is no exception.
It is axiomatic that banks will only lend when you don’t need the money. So set yourself on a growth curve that shows how you don’t really need the money, but if you had it, you could grow faster. This could entail starting out very small, even part-time. It could entail getting your web business going before setting up a brick and mortar business. It could mean setting up a great advisory board.
whatever spells “success” in the eyes of your banker, that is what you need to do.
(5) Bargain Like The Dickens With Every Single Supplier
While suppliers are unlikely to hand over money for starting a business, they can do the next best thing: they can make it A LOT less expensive for you.