What's the real answer to small business funding?

You should approach Angel Investors. This is funding usually from wealthy individuals. They support you, your ability, your idea. Investments can range from 50,000 - 1,000,000. Sometimes less or more. Good luck.

The most fun you'll have is to change the business plan so it starts with: $100.00

If you can't make that $100.00 -- $200.00, try to change your business plan so it does.

Now that you have $200.00, follow the business plan to make it $400.00, if this didn't work, change business plan, until it does.

$400 -- $800 -- 1600 -- 3600 -- 7200 -- 14,400 -- 28,800 -- 57,600 -- 115,200

How much are you looking for?

If those first steps didn't work, how confident would you be to invest if the first 11 steps failed?

Hi, thank you for your answers!

I am currently scouring the various Angel Networks and I have had some investors/brokers ask for my business plan... I wait with baited breath...

I've done our figures correctly, with as little estimate as possible, as I'm only looking for a small investment, for a small business and I really cant play with them too much as it will be obvious that you just cant make huge figures from a small entitiy!

I'm looking for investment of 13000 euro. I'm investing some of my own money on top of that figure.

Any ideas?? Suggestions??

Hellen, You might look at a couple of other sources to meet your funding requirements. First, depending on what type of business you are building, credit cards can be a good option. You will be required to make a personal guarantee without operating history and financials. Second, I really like some of the peer to peer lending services that are emerging. My personal favorite is Prosper (http://www.prosper.com/), It's a world class organization and platform.

Also, if your funding requirements are indeed that small, is there any way to retool your business plan so that you don't require any capital (or a de minimis amount)?

Scott

Another interesting suggestion... I am unable to use Credit Cards, I dont have one, and as I am an Expat I am in the difficult situation of not being able to get one from my UK bank as I no longer live in the UK, and the banks here dont lend to Expats.... rock - hard place etc etc!!!

I'll have a look at the prosper site.

As for retooling my business plan, thats impossible, the funds are needed upfront to get us off the ground, stock, supplies, a little bit of renovation and working capital.

If you look at the big picture, it's such a small amount of money, but it might as well be 13 million at the moment!!

Improper capital reserves is probably the number one reason not to start a company. You should be able to afford to run a company for 4 - 6 months without income if you want a chance at success. Otherwise you'll just be hounded by lack of capital at your heels. So sometimes it's better to keep planning until you find the right time to start.

Having said that, I would recommend pursuing any idea, no matter how unlikely leaving no stone unturned. Try sitting down with paper and list 100 ways you can fund your company, most people starting out barely think beyond 10. Who do you know? Who do they know? What about partnering with complimentary businesses and form a coalition? Trade Associations? Mentor programs?

Lack of creativity will stop you in your tracks.

Find someone who is already in that business and approach them. They are the real angels, not the angel networks, which now think of themselves as junior venture capital companies.

Thanks for all the suggestions. I've acted on some, and am now following some entirely different funding sources.... Unfortunately I dont have the luxury of time on my side so it's all systems go with any and all routes I can find...

Go to Ohiointernetsolutions.com and requests business(merchant) loan details from a specialist. They use credit card loans, but they have special arrangements with the large banks and can reduce the interest rate to about 3% - at least that is what I have been told.

Let me know if this helps you.

I would say that the first rounds of financing are usually from friends and family and they usually don't give more than what is asked. If it succeeds your friends and family will as well. Additionally, unless the money is free or close to it I do not see any reason to take more than is necessary.

Gary Kane
www.chimerastrategies.com