I'm seeing more and more marketing showing up about so-called crowd funding these days. Sorry, but no. Not yet. Reports of crowdfunding in the U.S. are, as of today, just wishful thinking.
Even when your startup is a one-man show and lots of fun, a "business" needs some discipline and controls to keep it from being defined as a hobby by investors, and assure some financial return.
While it's true that most new companies require some degree of startup capital to help get them off the ground, many businesses are surprisingly cheap to open. There are several ways to keep initial costs low when starting a business.
There are some grants available even for one person shops, from cities, corporations and even non-profits for just your type of business, especially if you support a social cause, can employ more people, or help turn around a geographic area in need of upgrade.
Let me tell you the story of how I raised $100,000 to fill a gap needed to purchase a new home for my young family years ago. I had located a beautiful home that would be a stretch to finance, and had arranged for a first mortgage from the bank, and a second from the seller.
Can you imagine having 300 shareholders? With recent legislation and new portals on the Web, it's entirely possible, perhaps for the first time for small businesses.
Friends and family will likely not expect the same level of sophistication on the business model and financials as a professional investor, but they do expect to see certain things. Here is a summary of some key items to think about as an entrepreneur before approaching friends, family, or even fools.
In combining two concepts close to her heart—dressing women well for little money and collaborative consumption—Tracy DiNunzio has built a successful, sustainable and innovative business.
In order to be able to obtain a loan, SBA or conventional, you must meet the basic financial institution risk rating, which is known as the "5 Cs of Lending."
It's not uncommon for me to see a startup business plan "mission" to be the "premier brand" for their product, yet their marketing budget in the financials is trivial. This combination will almost certainly get your plan tossed by potential investors.