Doug & PollyWhite
QUESTION: I have a great concept for a new business. Unfortunately, I’m having a really hard time getting funding. Do you have any ideas?
ANSWER: We hear this concern frequently from entrepreneurs contemplating a startup.
However, we don’t think that a lack of funding is typically the issue — it’s a symptom.
The issue is typically that the would-be business owner either doesn’t need funding (in spite of what he/she may think) or doesn’t have a compelling business plan that lays out clearly why prospective investors should plop down their hard-earned funds.
It is critical to think about the deal from the investor’s perspective. You must show potential investors what’s in it for them or they won’t be interested.
The tips below are not, nor are they intended to be, comprehensive. However, they will give you a good start and provide a good acid test for any plan you develop.
If your business plan doesn’t address these issues, it isn’t sufficient.
Don’t need funding: Many businesses can be bootstrapped at low cost. That is they can be self-funding with minimal or no investment.
Companies that meet this criteria have the following characteristics:
