What is the best way to get funding (less than $100k) for a new business?
I was wondering about the best way to get (small, less than $100K) funding for a new business?
There is a complete business plan and proven demand, so I was thinking that Angel investor may be the best way to get started.
I would welcome input.
Just for reference, this is going to be a national business servicing residential trades.
Thank you in advance!
From my (limited) experience angel investment is the way to go for that level of investment. You could try this link to start with http://aaai.net.au/
There's also something called the Australian Small Scale Offerings Board (http://assob.com.au/) where you might post you opportunity for potential investors to look at.
I'm going to pre-empt this answer with the fact that I have never done this before however for smaller investments, a lot of small businesses get a loan from the bank. This gives you more freedom from an investor that will pressure you to take the business in directions that you may not want to take.
Also work with Angel investors that will give you the freedom and guidance. The only benefit vs. getting a long is probably having a mentor as well in times of need.
Anyways my 2 cents :)!
HI, I ran a Business Angel network for two years and there are specific things that Business Angels look for in a potential investment. That you have proven demand and means that you are ahead of your competition for their attention. To give you advice about the next step from what you have written is a challenge, however my first questions are:
- How have you proven the demand? How mnay have you sold?
- How big is the potential market? Does it have international potential?
- What problem are you solving for your customers?
- Who are your competitors?
I hope this helps,