Getting funding is one of the biggest obstacles entrepreneurs face, but as long as you have these four things, you'll be in a good position to get it.
You've already got the idea, but pushing that idea to reality requires startup capital, and oftentimes more startup capital than you have immediate access to. For the ambitious entrepreneurs ready to take the plunge and nurture their idea into a full-fledged business, the best option to move forward is to get funding -- from an angel investor, a crowdsourcing platform, a government grant or some combination of these and other sources.
But in order to get that funding, you need to be solid. No matter who you're dealing with or how convincing your idea is on the surface, there are four things you absolutely need in order to get the money required to build your business's momentum:
1. A logical elevator pitch. Most entrepreneurs focus on the flash of their elevator pitch--the indefinable captivating essence that will draw an interested party further into a conversation. But when you're seeking funding, people need tangible logic: an "if A, then B" kind of model. Make sure it makes absolute sense.
2. A business plan, backed by research. Your business plan should be fully fleshed out by the time you start looking for capital, and that includes having market research and historical data to prove whatever points you make throughout the document.
3. Experience. You need to be able to prove you know what you're talking about, and that usually means demonstrating your experience either as an entrepreneur or as some agent related to the product or service you're offering.
4. Incentive. Angel investors and crowdfunders alike need an incentive in order to invest in your company. Are you going to offer a share of profits? A controlling stake? A sample product for micro-contributors? Plan ahead.
If you have these four things at the ready and you still feel confident to move forward, odds are you'll eventually get the startup capital you need to make your business a reality.
Jose Vasquez is a serial entrepreneur and tech enthusiast dedicated to helping startup technology companies get the direction and momentum they need to succeed. As the founder of Build. Brand. Blast., Jose has established a collective resource for tech entrepreneurs to consult when brainstorming, creating, launching, or expanding a new business. Jose is also the founder and CEO of Quez Media Marketing, a marketing firm that combines technology and creativity to help new and growing companies get the results they need.
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