Finding a way to finance a new idea is challenging in any economic state, and the current state of economic affairs in the U.S. is not that great. The good news is that entrepreneurial endeavours are more prevalent than ever before, and people are finding success independently with their fresh ideas.
With a great idea and the drive to succeed, finding funding for a new business startup is entirely possible. Take a moment to read through a few helpful suggestions that will set entrepreneurs on the path to funding, and get that business startup rolling.
Tax refunds are a great financial boost
There is a definite benefit to securing an excellent accountant. Most small business owners do not have the time to sign up for the CPA exam, so this is a great task to outsource.
Find the best professionals to get the most money back when tax season rolls around. One large tax return can pay to get the ball in motion towards a new business startup.
Tap into that 401(k) savings plan
With the right information, it is entirely possible to tap into a person’s 401(k) plan without accruing penalties. The provisions of a few new tax codes make it simple, but legally complex, to get the most from the years of saving.
It is highly recommended that entrepreneurs seek legal consultation before making the decision to break into their retirement plan. It is also good to remember that this is a nest egg. If the business fails, the “cushion” for retirement also fails.
Seek out crowdfunding opportunities
Crowdfunding sites like Kickstarter and GoFundMe have provided a once in a lifetime opportunity for hundreds of business professionals around the world. Investors basically troll these sites looking for viable business ideas in which to invest their money.
Put forth a strong effort when designing the crowdfunding call to action. Investors look over tons of these profiles, and only those who stand out get the funds.
Attract attention from angel investors
Winning over an angel investor is a challenge, but it is absolutely possible. There are a few helpful guidelines to follow:
- Let the experience on the team show to investors. Gray hair and distinction translate into reliability in the minds of investors.
- Dare to be different. Following the crowd does not work very well when seeking funding.
- Exude competence alongside confidence. It is great to believe in oneself, but it is even better when they have the knowledge to back up that strong belief.
Secure a small business loan
Loans that are backed by the U.S. Small Business Administration are the best case scenario when seeking bank funding for a business startup. There are a number of qualifications:
- The law requires SBA loans to only be guaranteed to those businesses who cannot get funding on their own. There must be proof of rejection from a bank.
- The firm must meet the government’s definition of a small business for a particular industry.