Small Business Tips: Creative ways to attract start-up capital
If you are looking for capital finance for your small business then don’t worry so much about whether you’ll get it or not. The first thing you need to do is be creative in your quest for finance. Make an attractive pitch and look in all the right places to attract start-up capital.
Here’s how you can go about making an impression on potential investors…
Showcase Your Strengths
Whether you are one person or a team, showcase your strongest points. Highlight relevant experience, knowledge, training and education. This will indicate to potential investors that you have the ability and expertise demanded by the enterprise and you are equipped with the requisite skills.
Make Your Proposal Different
Well most times new entrepreneurs make presentations to potential investors and everyone comes up with slick PowerPoint Presentations and handouts. That’s what everyone does! What can YOU do? Make it different and interesting by telling a story, playing a small game that will involve the audience or take products for them to see and try out. Instead of simply talking and presenting, add a narration to your presentation, make little video showing you at work developing prototypes and play it for them!
Highlight What In It For Them
People as investors are looking for something from their investment in your business. This is precisely why you have to let them know what’s in it for them. Apart from the profits of course!
For example, you are writing a book and need funds to publish…make a pitch to brands giving them options to get featured in your book as a case study for “x” amount, as an example for something less. That way people know they will get a certain amount of publicity for investing in your book.
Tell them How They Can Exit
While most of us rarely think of this, letting people know how they can exit from your venture is a good idea. That way people know you don’t expect them to stay with you forever if they don’t identify with your vision or the payoff is not good from their point of view.
Having said that your search for capital finance these days should not be limited to venture capitalists and angel investors, it could extend to the web. With the internet offering multiple crowd funding options small business owners no longer need worry about start-up capital being scarce or hard to come by.
Here are 5 places you can look up…
A crowd funding platform that lets you float ideas nad projects of every type…social, creative, commercial!
This is another popular place to go to for start-up capital for funky and creative ideas.
Crowdfunder is specifically geared toward startups and small businesses where entrepreneurs have solid business plans in place.
WeFunder, specifically tailored for startups takes a very by-the-book approach to investing in small businesses while helping small businesses navigate tricky regulatory waters.
Quirky, a products-only community also has the advantage of retail partners. If your product is good and marketable they could find place at outlets and platforms like Amazon.com, Bed Bath & Beyond, Target and Ace Hardware.