If you plan on becoming a small business owner, it’s definitely important that you have a winning idea.
Unfortunately, as far too many entrepreneurs have learned the hard way, that’s not going to be good enough.
You also need the funding required to bring that great idea to life.
3 Small Business Tips for Entrepreneurs Who Need Funding
These days, it’s easier than ever to secure working capital to get your company off the ground. These three small business tips will show you how.
1. Self-Fund the MVP
Many small business owners get stuck in the trap of only being able to imagine the finished product they want: a giant storefront, a comprehensive software platform, the perfect product with all the bells and whistles, etc.
While this is a good final goal to keep in mind, it might make far more sense to start with the MVP (Minimal Viable Product). An MVP is a version of your final product that will attract early customers and provide critical feedback about what the next iteration should entail.
This can be an extremely helpful tactic for ensuring your final idea is a successful one. However, you can also use MVPs to gain investors. Prove to them that your idea has legs and you’ll have a much easier time convincing them to fund it.
Best of all, the MVP will cost significantly less than your ultimate dream. That said, if you still can’t finance it on your own, there are two more options available.
Crowdfunding has become extremely popular in recent years as a method of quickly financing new ideas. As the name suggests, the concept is to bring in funds from a large crowd. The major advantage is that, because you’re pulling from the masses and not just one or two investors, you don’t need giant commitments. People are far more likely to put $1, $5, or $10 toward an idea they like because the risks involved are so minimal.
There is also no shortage of popular websites that can serve as platforms for your crowdfunding platform:
You can also combine this idea with the first one. If you don’t currently have the funds for an MVP, you can use crowdfunding to earn the capital you need and then use that initial version to gain more investors in the future.
3. SBA Express Loans
Small business loans may remain as one of the most popular funding methods, but they’re not all created equal.
SBA Express Loans combine sufficient capital with fast turnaround times so small business owners can start getting to work right away.
Begin Funding Your Small Business Today
While we hope the above small business tips were helpful, we’re a bit partial to that last one. If nothing else, you can use an SBA Express loan to finance the MVP you can then leverage to attract potential investors.
At First Financial, we will approve SBA Express loans for up to $150,000, with no personal collateral required. So if you could use working capital to launch your small business dreams, contact us today to learn more about how we can help.