Don’t be discouraged by the sour news that is out there about how banks are not lending, investors are skittish and new businesses need government help to get their companies off the ground. This is not always the case, and anyone can get the money the need if they try hard enough, have a good business idea and can promote a sense of confidence in those who they are asking money from. Perception and paperwork is key when shopping around for money from others, and if you can package yourself, your idea and your goals into something that is attractive, then your chances of being a successful fund raiser are much greater.
Getting your personal financial house in order is the first and most important thing that you can possibly do. Anyone from your friends and family to banks, investors and even the government will look at your financial responsibility and character when deciding whether or not to give you money. So, if you need to take some time to get your bills current, reduce your debt and place yourself on a secure financial footing, then by all means do that before you go out and start asking people to trust you with their money. In the eyes of banks and investors, how you look to them is everything. They don’t care about your idea as much as they care about your reputation and your willingness to deliver on your promises to pay back the money.
Investors will look at this as well as your ability to make your goals a reality. They want to know that you can run your business, make money and then make them money as well. Even your friends and family will look at you with a skeptical eye and make judgments on your character and ability to succeed. Get your life in order and make sure that you are fiscally and personally ready to be financially responsible before you start fund raising. Also remember that there is more than one way to skin a cat, and just because one funding source doesn’t think you are a good risk, there may be many more who do.
Many small businesses find funding from many different sources, and then put the pieces together as the money starts to come in. Maybe a bank will give you a little and the government will give you a little more. You may still need to use part of your savings or seek crowd sourcing as an additional option. Keep an open mind and always keep moving forward if one funding opportunity doesn’t work out. If you are serious about getting your business off the ground, you will be able to convince someone that it is a good idea. It may take time and effort and an enormous amount of diligence on your part, but it will pay off in the end. Just make sure that you, your business idea and overall strategy for making money is as attractive and as convincing as possible.