The first thing anyone and everyone will tell you about funding a new business is that you have to start with friends and family. This is of course after you’ve depleted your own resources. Depending on the crowd you hang with, this could be easy or hard. But, either way, it must be a business transaction.
Start by making a list of the people who have the ability to invest. Just like an investment in the stock market, these folks should be able to lose their investment and still be okay.
By approaching friends and family as business investors first, they will view you as an entrepreneur, not a relative or friend. And if they turn you down (and many will), try to find out why and continue to hone your business plan and presentation to address those concerns.
If your first list of potential investors does not yield you the necessary amount you need, ask them for introductions to their friends. You cannot be shy about asking for money. If you think this group is tough, wait until your business takes off and you need institutional money. This whole process will seem like a cakewalk.
If you or someone you know is looking to fund a new business, a business purchase, a pivot or an expansion, join us! The Profitable Idea online course and coaching will be offered in October, 2022.
All the Best,
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Amanda Weathersby, and Cynthia Flanders are Co-Leaders for the Profitable Idea LLC, which is now online!
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