Everyone has a talent or an idea they think might be worthy of creating into a business. Some individuals have always had the entrepreneurial spirit, and others are simply looking for ways to get out of the corporate grind and make money doing so. Whether you’re a millennial looking to fund your first startup, or an experienced businessman looking for a fresh start, the biggest question is usually, how will I pay for this, and eventually make it pay for itself? Below are 5 steps to help you finance a successful new enterprise.

1. Assess Your Financial Position
   Conduct a personal audit of your funds, assets and debts and really consider what you have in front of you, and what you’re willing to lose. Since it’s never financially astute to invest every last cent you have, consider how much you can and should set aside toward your new venture, then devise a plan for how you can raise the remainder of the startup costs if needed.
2. Develop a Practical Plan
   While it’s always important to create a well researched business plan, it is especially vital if you are seeking out investment assistance. Investors will not take you seriously if you do not come to them having considered every possible risk, challenge and reward. So, take the time in advance to research every aspect of your market, including your potential competitors, as well as clearly define short and long-term strategies for development and growth.
3. Know Which Lenders Are Right For You
   Are you looking to franchise? Then outside investors probably aren’t for you as most won’t consider funding a franchise. Look into that company’s in-house financing options, since that is likely your best bet. Brand new entrepreneur with a tiny startup? Then avoid seeking out venture capitalists, as they tend to back more experienced or established entrepreneurs. Your best option may be a small business loan. There are options available for every type of startup, just do your research and consider which avenue will best benefit you.
4. Be Resourceful
   Consider how you can save pennies, do something yourself or work on a smaller budget. Investors and franchising companies often look for individuals who are willing to put in the extra work, like creating an initial prototype in their parent’s garage or scouring a landfill for free materials. Get creative and inventive, believing in the opportunity presented to you, and others will latch on and start believing too.
5. Lean On Friends And Family
   Sometimes, the best marketers and investors for your startup are the people you’ve known for years. Because they know your work ethic, and also where to find you, friends or relatives are often more willing to support and invest in your new venture. Though there can be issues or awkwardness that arise from seeking out someone you know for money, take measures to avoid this. Treat your friends or family like any unknown investor and send them your business plan, including an outline for how you plan to pay them back.

In the end, starting a business takes grit, determination and well developed strategies. Although no plan is foolproof, assessing risks, developing a solid initial funding source, and learning to make every dollar work for you are keys to future success.

If you have any questions or would like to discuss starting your own business, please contact me at [email protected].