So here's the scenario: You've got a great idea, like, a really good idea. You're passionate about it and ready to jump into the world of entrepreneurship like a boss, except one little thing seems to be standing in the way…
Money.
You need some green to fund your start-up, but unfortunately Mark Cuban isn't on your speed dial. What to do, oh what to do?
Starting a business is pretty hot right now. But before you get those stars in your eyes, understand you're going up against a lot of competition. I'm not going to tell you not to do it, far from it! just note the importance of having a killer proposal no matter which way you go about getting some funds.
I'm not gonna recommend crowd-funding because although it can have awesome results (remember the guy who raised thousands to make potato salad?), unless your business idea catches the attention of the public, it's likely to go unfunded. Same goes for a friends/family round, it's great if these people are willing to support your idea, but it doesn't validate it (which may make it harder to get capital down the road from other sources) and can make things, uh, tense. If you don't have to, don't.
Still interested? Okay, here goes.
1. Get a grant
Finding and getting a grant isn't the easiest thing, but who are you to shy away from a little challenge? If you can secure one, you've got money in the bank for your start-up, free of charge. Depending on your business niche and demographics, there are various government grants available to you, even more if you're a woman, a minority, and so on. Be prepared to write an extensively detailed proposal, baby.
A good place to start is a federal grant database like FederalGrants.com, where you can search by category and eligibility.
2. Enter a contest
No, I'm not talking about putting those shower-singing skills to the test on The Voice in the hopes that the $100K prize money can go to your start-up. There are a growing number of business contests that offer big prizes to encourage creative innovation. A few notable ones worth considering: the MIT $100K, the Women 2.0 startup pitch competitions, and the Amazon Web Services Start-Up Challenge.
3. Find your own Mark Cuban
Even if you're not competing on Shark Tank, you still have ways to find an angel investor (or two). A good angel investor can offer not only financial support but also valuable connections and wisdom… yes, kind of like a fairy godmother. Take note, though: because angel investors are willing to take on the risk of a start-up, they'll also be looking for something in return, normally a sizable portion of the company.
However you fund it, the money is only step one. For more on running the business once it's off the ground, read 3 secrets of the self-employed, and explore Nicole's Career & Salary hub.