Steps how to get funding for your startup business

Startup businesses are very lucrative, and a very easy way to make millions of dollars and get rich.

When that one idea cooks up in your mind, write it down right away, make a business plan, put some numbers down on paper and picture the money rolling in. The next step is find an investor who will give you money and you are a success!

Simple right? Well for 99.99% of people this is just a dream. In reality it is never like this, and in order to get close to this a lot of work has to be put in to achieve success (or get close to success).

So you ask, what us the way?

It sure does start of with an idea. You do have to write it down and plan it out (in a business plan), after a lot of research and testing your product/service might be ready for the real world. But the biggest problem startup entrepreneurs face is the lack of money to startup, launch and operate. That brings us to the critical step of how to get funding for your startup.

How to get funding for your startup business

Aside from doing a lot of research and testing for your business idea, a business plan is one of the key ingredients that is pretty much a must for any business owner, especially startups.

Business plans are looked at as a guide to your business. By following a business plan, you, your employees, your business partners and even potential investors can use the business plan to determine the viability of a business.

To get started on your business plan you may consider using the Business Plan Builder Tool to create one in a quick, simple, fill in the blanks way.

When looking for funding for your startup business a few points to consider include:

– Any previous startup history (preferably a success)

– Strong work experience in your industry/field

– Close circle of friends & family

– Your ability to seek funding from multiple sources

A funding search can turn into a nightmare if you are unprepared. Thus a business plan again is one of your best friends in your funding search.

One thing to keep in mind is that whenever a potential investor, a bank, or a funding agency is looking at you they care a lot about what they see and whether you are a right fit for them.

If you had previous success in the industry (starting a small business), you could be seen as less of a risk for somebody to invest in you. What adds to this even more is if you are an expert in the field that your business is in. Simply put, if you know what you are doing and you have evidence to back up your story, a potential investor, a bank or a government funding agency will surely look at you differently then a new startup entrepreneur strengths out of school.

It is important when looking for funding that you have some money of your own that you can invest in your business. Think of it this way, why would somebody invest in your business when you don’t want to risk your own money in your business. This is why it is important to keep a close circle of family and friends who can help you out.

Having some money when starting up can help increase your chances of finding a interested investor, as they see that the risk is not entirely on them. Borrowing small amounts of money from friends and family members is a typical way new entrepreneurs get started.

Once you do have some money you are ready to start the big funding search. The one that will help your business really go forward. But you have to know exactly how much money you need, why you need it, how it will benefit you and what happens if you aren’t able to obtain the funding you need.

These are also simple questions that investors may ask you.

Your ability to find funding for your startup increases as you open up your search into multiple sources of funding.

Remember that your business can be funded through your personal savings, your own lines of credit, loans and credit cards as well as through potential business partners. But you are really getting out there and increasing your odds when you look for private investors and reach out to government funding agencies that provide you with government grants and government loans.

To get started on your funding search, you may consider using our Funding Database to find the programs that can help you start a small business in Canada. Our Funding Database currently has over 1,500 sources of funding programs both from government and private investors.

The sooner your funding search begins, the sooner funding can be in your pocket and your business starting up.