Funding Your Dream
Funding your dream is the main inhibitor for new business owners. Many only have “a dollar and a dream.” There are some key steps to consider when going to acquire funds, raise capital, and/or pitch investors/donors for your business. Review the following points below, which explain the steps to prepare and seek financing:
Planning the Dream:
Before doing anything, the first step is planning, no matter how small the project or the work to be done. It provides a complete road map to turn your dream into reality.
Take the idea in your head and put it onto paper:
So many ideas cross your mind daily, but a few of them are pretty much applicable and remain stuck in your mind. It's just a thought, until or unless you write down that idea on paper. When you do so, there's a greater chance of that idea becoming your dream.
And when you wrote it on paper, you intentionally or unintentionally completed the first step of planning your dream. Doesn’t that sound good, "your dream turning into reality"?
Add as many details as possible:
While thinking about your idea or dream, you possibly have many details related to it also. Write as many details as possible on the same paper you wrote your idea. This will ultimately help you to develop your idea’s implementation map.
Research areas you need more information:
By researching those things about which you're unclear or confused will help you succeed in the future. This way, you look towards things in a particular manner and will also be able to understand the realities regarding your idea. Research is a major factor in the planning of any project.
Identify resources:
After planning, you need to identify the resources involved in making your idea come true. Try to identify and write down all the possible resources to reduce any issues when launching.
What exactly do you need funding for?
Identify your purpose of funding. You should be crystal clear about your idea and about the planning you have created. Then, you should proceed with the funding on your idea. By doing this, you can save yourself from a possible loss that can occur due to a lack of concentration.
Identify every resource:
Identifying every resource involved in the project or implementing your idea will help you plan the budget and the total investment required. There are many resources in projects like laborers, material cost, professional team, and experts in specialized fields.
This will keep you safe from over-budgeting or under-budgeting as both can destroy the business at any stage.
Cost of material: The cost of material must be taken into account while Identifying the resources. These materials can be either the costs to render products or services or even building material if the office needs to be constructed.
Also, the later expenses of equipment like the internet charges, the laptop or computer charges, etc.
Laborers: They play a vital role in any business or idea's fulfillment. Laborers can be those people who are working on a daily contract with you or your company. Such people do their assigned tasks and get their money at the end of the day. Or they can be long-term employees who fulfill regular operational tasks.
Professional team: A professional team is required for every business, whether small or large because these are the people who can take your company to the heights of success. This team may include but not limited to industry experts, attorneys, accountants, etc.
Experts: At certain times, you will need experts in various areas to get a better understanding and solutions. They offer more in-depth experience in the matter and can guide you through unfamiliar territory. Experts are great to bring in when handling unique challenges as well.
Raising capital: Raising capital is also as important as the steps mentioned above and must be taken under consideration.
Here are a few ideas to give you a better understanding:
1. Small Business Administration (SBA):
This government-based division provides support and helps in various areas for entrepreneurs and small businesses. The small business administration's goal is "to maintain and strengthen the nation's economy by enabling the establishment and viability of small businesses and by assisting in the economic recovery of communities after disasters."
2.Bank funding:
Bank funding is very common, and most people use banks and/or credit unions to borrow money to support their startup and growth phases. After establishing their business, they gradually pay back the money with a small amount of interest.
3.Raising capital:
Capital raising is a type of funds generation through any means like taking help from lenders or investors. These funds can become crucial to run the business smoothly. Two methods are commonly used for raising capital, equity financing and debt financing. You can choose either or a combination of both according to your needs.
4.Crowdfunding:
Crowdfunding is a type of fundraising in which you collect small amounts of money from many people for a specific project or venture. According to a report, almost 34 billion dollars had been raised through crowdfunding in 2015.
5.Love money AKA family and friends’ donations:
You can also do fundraising with your friends and family. As these people trust you and encourage you, you must have a fundraising campaign with your friends and family. In this way, you will surely be able to turn your ideas into reality.