Entrepreneurs always have options when it comes to raising capital but the problem is that the options are limited. Even if you have the cure for cancer, it is still going to take many steps for you to prove your idea before you get funding. This means that you may have to depend on your personal resources, debt and/or equity.
Although it would be nice, the reality is that most people don’t start with a big check from an investor to make all of their business dreams come true.
Remember you are expected to have many of the basic things out of the way. If you don’t have the business attaining revenue, you will be expected to have put in the time of building a solid business plan with market research and financials to get somebody to start putting in capital. Remember ideas are a dime a dozen so you have to prove why your idea is going to be successful.
Once the business has been established, even if that’s as simple as incorporating and putting together the business plan, the search for capital may begin. However, the less you’ve done to move the business forward, the less likely you are to find outside capital.
Our experience in working with businesses has suggested that you want to push the business as far as you possibly can without capital before you seriously begin looking for capital partners.