Financing and funding for entrepreneurs

Presentation is vital for entrepreneurs needing financing and funding for their business ventures. Success depends on having a key focus for the business and being able to communicate (sell) it to those who might be interested in funding it. Entrepreneurs need to generate enough interest in their business plan to achieve optimal results for receiving funding. Upon presentation of their business plan to those able to back it, entrepreneurs must be prepared to ask for the money.

Primary components of a successful business plan in a stretched economy require limiting excess fat and focusing on need vs. want to maximize potential for long-term success. Investors are not likely to help entrepreneurs chase after meritless ideas or dreams. Rather, they will pursue sound business opportunities demonstrating concise budgetary guidelines and practices. Business plans that can articulate a viable budgetary concept are more likely to receive funding from potential investors, grants and possible alternative resources.

Investors

Entrepreneurs can seek seed money from investors willing to help them get started. Investors loan or donate money to entrepreneurs because they’re sold on the business idea that was presented. Investors usually maintain some sort of stake in the new found company, be it through financial gain or a percentage of ownership shares. Specific types of investors include:

• Angel Investors: These are individuals or a group of individuals who fund necessary capital to business start-ups, as well as share business expertise with new entrepreneurs. More often than not, angel investors have a solid business background and have been successful entrepreneurs themselves. Angels are considered private and informal funding sources for entrepreneurs.
• Venture Capitalists: Venture capitalists fund investments professionally. They invest large sums of money into viable business concepts, expecting a high return on that money in a limited amount of time. Venture capitalists are in the business of making money by managing the funding they distribute and helping solid business concepts succeed at a rapid pace.
• Philanthropists: Entrepreneurs receive funding from wealthy people willing to give their money away. They invest in new businesses for a variety of reasons, particularly if the presentation and business plan relate to something they feel strongly about. Philanthropists are private investors who are more interested in the success of the entrepreneur and his idea, than in gaining a financial return on their investment.

Grants

Business grants are available to entrepreneurs through the government, businesses and corporations, as well as private individuals. Entrepreneurs should conduct thorough research to determine if they meet the criteria for specific grants before pursuing the application process. Grants, unlike business loans, do not need to be paid back.

Alternate resources

Traditional methods of obtaining financing and funding for entrepreneurs often provide adequate resources for new businesses ventures. However, other resources can be utilized depending on need, willingness and desire. Entrepreneurs can juggle their personal finances and re-prioritize their personal investments to fund new or expansion business projects. They can also form partnerships with willing participants and businesses.Alternately, entrepreneurs can secure funding and financing through raising and saving funds before they start their new business. Utilizing the Internet by starting a low maintenance website or sharing their expertise through newsletters and public speaking engagements promotes networking possibilities that will enable business owners to discover new resources for their existing ideas.