Asking for help is one thing; Asking for financial aid is quite another. However, many entrepreneurs turn to family and friends for financial help for their business.
If you are willing to start and own your own business, it is possible that you have already had a great idea for a new company or startup. But, after this great idea, what to do to get it off the ground? You will probably need a website, a technology team, some office space, etc. That is, you will need money – like most companies and entrepreneurs to finance a startup and get your business off the ground. After all, whoever has the idea or a project to be put into practice does not always have the financial resources to undertake or manage that idea in the long run. The lack of initial capital, however, need not be the biggest obstacle that will prevent you from realizing your dream.
If you want to start your own business, but don’t have your own resources, you can still get it off the ground in several ways. And that is exactly what we will cover in this article. Check out!
Make a formal business plan
No matter who you are asking for help, be it your best friend, your dad, your mom, or a third party, you should present a plan, just as you would in front of a bank manager. It is impossible to obtain a bank loan without a business plan, as it is not sensible to expect others to invest without an equal requirement. A business plan sets clear goals for your business and shows investors a perspective on how your plan will generate profits. Can you make such a plan on your own? If not, then you can seek help from a professional, or you can search for virtual applications or programs on the internet.
Make them aware of the risk to avoid misunderstandings
An important part of maintaining a good relationship with an investor is being honest – with yourself and with them – as every business plan involves a certain level of risk. Sometimes the emotion and the commitment for the correct operation can cloud the conversations and avoid touching the point of what the investor should expect and even how long it will take to obtain results.
Ask for the minimum and not the maximum
Every entrepreneur likes to have a million dollars in funding to “get it right” and build the company of our dreams. However, you must be aware that your chances of finding someone who will give you a lot to start with are minimal. It is better to start working with some money and start developing the project for three or four months and show what you can do, and then later ask for more.
Define an outlet for those investors
Friends & family investors are ideal for the initial stages of a venture; however, as it grows, they can be a heavy burden for female entrepreneurs. So from the beginning of the relationship, it is important to define an exit plan; a way to recover that part of the company. Throughout the different stages of an undertaking, the type and number of investors who will participate in it can vary greatly.
For this, it is important to be aware of the moment in which the business is located and act in the search for investors according to it, which will allow not only a successful capital raising but also solid relations with investors.
