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By Hunter Hoffmann, Head of US Communications at Hiscox Small Business Insurance
The spark of inspiration, that great idea, is the beginning of many small businesses, but turning that idea into something takes money. A lot of good ideas have been left to whither without the capital they need to become a reality. Sixty-five percent of small business owners believe finding financial funding for a new business is difficult according to Hiscox’s DNA of an Entrepreneur study.
Raising startup capital is one of the toughest parts of starting your business. Here are some tips to help you get funding you need to make your small business a reality:
1. Find some angels.
Most of the successful entrepreneurs you see on TV started out in the same spot where you are now– they had an idea and, but needed capital to make it a reality. Reach out to people in your network to help get funding from those who were once in the same position. Talk to everyone you know until you get a positive response or a referral to someone who can actually help you.
Angel investors are a great resource to help get your idea off the ground, if you can get their attention. These are usually accredited investors with a net worth of at least $1 million that invest in different start-up businesses and concepts. This doesn’t mean they’ll just throw money at any crazy idea – they get pitched all day and only choose a few select companies to invest in. Make sure your elevator is pitch tight and be ready to answer all the hard questions about why your idea merits their interest.
2. Follow the wisdom of the crowd.
Crowdfunding for small businesses has exponentially expanded the opportunities for entrepreneurs to raise funding. However awareness of this option … Read More
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