Good ideas are a dime-a-dozen and come in all shapes and sizes. But people who have the money to fund projects are a slightly rarer creature.
As an ‘ideas’ person you may need to go looking for funding, and with that in mind, here are some good options:
1. Buddy Funding
A client of ours recently ran with the buddy-funding method. He asked people within his network to help him fund his project in return of a share in his business.
He sold shares of his business for x-amount of dollars each and raised over $40,000 for the first phase of development (MVP).
If all goes well with the app, he, his family and his friends all get a share in the glory and the financial reward at the end.
2. Crowd Funding
Crowd funding is an interesting concept where you post your pitch out to the public and ask for small investments. In return, investors get a share in the company. Or you can get creative by offering a free copy when the app is out.
Of course when taking this venture on hand, you have to consider the fact that you are releasing your idea out to the vast majority of people without any way of ensuring non-disclosure.
Depending on the sensitivity of the idea, you may want to go for a more private funding arrangement.
3. Angel Investors & Venture Capitalists
This is a fantastic option for seeking funding for app. You will need a detailed business plan with clear exit strategies.
Many of my close friends have gone this route when seeking funding for their project. And one thing they all mentioned afterwards was the intensely hard work and many rejections they received in their conquest.
However, if you need a $250,000 injection to your new business, this is definitely the way to proceed.
4. Get A Bank Loan
Banks are nearly always happy to loan money… when the economy is good at least.
Once again, you will need a business plan that clearly states your intentions for the loan and how you are going to use it. At the end of the day, they are simply securing their own return on investment.
5. Find A Business Partner With Funds
A business partner or a silent partner is a great way to get funding.
Make sure you do your research on potential partners and make sure they are legitimate. Any baggage they bring with them could affect you and your business.
The main thing investors look at when considering an investment is: “Are you the right person for this job.”
It comes down to positioning yourself in a way that shows your potential investors that the project must be done, you must do it and you need x-amount of dollars to get it done.
Good luck on your fund-raising campaign!
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