The Secret to Raising Capital for Your Small Business – It’s About People, Not Money!
Growing a small business is certainly an expensive venture and a Non-Profit is no different. A common tactic for gaining capital to begin growing ones business is by asking for a loan from a bank. Not only can it be very difficult to get approved by a bank for a loan but who is to say that if approved, your loan will cover all of the necessary costs.
Smallbiz technology explains that it may be less about the money, and more about the network that we have when starting our business. A Non-profit is no different as we want to find successful donors or investors to help get your business off the ground. Bank loans aren’t always the most dependable and having a specific contact you can reach out to when needing financial consultation is much more likely to come from an investor or a donor rather than a bank looking to move money from one account to another.
Approach prior successful business partners – Reach out to people you have successfully worked with in the past. Not just to ask them for capital, but to learn from their experiences. Ask them questions. Utilize your relationship with known investors to build relationships with others as well. References from other successful investors work wonders when trying to build a relationship with a new one.
Identify potential investors in your area! – Don’t’ just look for any old investor if you can. Find someone with prior experience in the area in which you’re looking to excel. Their prior knowledge and experience with the process in which you’re about to undergo will be invaluable. They don’t have to be billionaires looking to dump money (while that is appreciated) but remember it’s about People, not Money!
Growing a Non-profit business is something that takes great strategy. Find the right investors, find the right people, and utilize your resources well as they don’t last forever! Start here by taking a look at the remaining tips Smallbiz Technology has to offer!