Young Entrepreneur Blog

At some point in all of our lives we are going to need outside investment to turn our ideas into an actual business. However, funding is not easy to find, and as our parents keep telling us: “Money doesn’t grow on trees”.

So how do we find investors or sources of money to fund our business ideas and ventures?

Friends and Family

Ok, generally it is best to avoid working with, or partnering with friends or family. Trust me, I have done it, and it wasn’t nice. However, if you treat it as a strict business deal, and ensure you have a business plan, then they might surprise you and say yes.

Also, it might be worth asking for a % from numerous family members, as opposed to the whole amount from just one.

Co-Workers and Contacts

It is not what you know, but who you know… right? Well put this theory into practice and ask around. You may have someone on your MSN friends list, or an old work colleague etc… Don’t just limit yourself to your friends and contacts, also look at friends of friends.

Banks

Please don’t tell me you are actually considering this route? An unsecured load is one of the worst options you can take.
SBA

SBA stands for Small Business Administration. They provide loans for most types of businesses, and are backed by the government. This wouldn’t be my first choice, but it is worth considering.
Credit Cards

Actually, this IS the worst option possible. I don’t care how confident you are that you will be successful, do NOT under any circumstances use a credit card. It is a hole that many, many people cannot crawl out of, don’t do the same.

Angel Investors

Angel Investors are becoming a more and more common option, and with good reason. But where do you find them? Angel Investors that is a good starting place, plus do some google searches and ask around. Bear in mind that your business plan and your figures will have to be rock solid before you go down this route.

Good luck.