So you have the seed for your
idea, now how do you make it grow?
Like a delicate bonsai tree,
each business is different, so
it's going to take different resources,
sunlight, water, and flies, if
it's a carnivore, to feed it.
This video is about how you can
get your hands on those resources
and what you can do if you can.
Before we get our hands dirty,
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of our series, "Ready, Set, Goals."
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So look, we're all here for the same
reason, getting our sweet, sweet business
trees to blossom.
I love the smell of fresh, sustainable
income, but before you can have fruit,
you need the tree.
And before you grow the tree, you need
water and sunlight.
Funding is kind of like the sunshine for
your business tree.
You don't always have control over
it, but every business needs it.
So let's talk about how to
ask for funding and who to ask.
First, how to ask.
You need to be prepared.
So the first step is to develop a business
plan as strong as the mighty forest.
Or you know, just a solid one.
Then you need to know exactly how much
funding you need.
Generally, you're going to need about
a year's worth.
To determine how much that is, take
a look at your sales forecasts, expense
budgets, your fixed costs, stuff like
office space and one-time costs.
And that should at least put you
in the ballpark of what you need.
Last, you need an elevator pitch.
Here, you get your biz idea
down to its roots.
Smart investors can tell what's a good
idea and what's, um, fertilizer.
So have it down before delivering it.
Okay, now that you have that you're
ready to find your precious little
business the light it deserves.
There are two approaches to
getting funding.
If you have a track record, you can
take out a loan.
If you've started a business before this
should be no problem.
Most of us though are going to have to take
on the DIY method.
We cover loans in our videos Small Business
Loans: How to Apply, so we'll focus
on the DIY here.
Doing a DIY is kind of like growing
it in your garage with a bunch of
synthetic lights.
Sure it's not ideal, but it can still
grow and even thrive.
First DIY route is to use your own
savings to fund your business.
Work with your CPA to determine how
much of your money is safe to invest
in the business and make up differences
with other funding sources.
Second is 0% APR credit cards.
These bad boys offer easy credit to cover
a few necessary startup costs.
It's like an inject-sunlight-as-you-go-approach.
Business credit cards also help you
separate business and personal finances
for easy bookkeeping.
Then there's crowdfunding.
That's like asking other strangers to
believe in you and send you little
small donations of sunshine.
It sounds a little more magical
than it is.
With crowdfunding you pitch your
idea, usually with a well shot video,
and try and get the people who would
want your product to help back it.
Crowdfunding works best for businesses
selling unique and innovative products.
Finally, you can ask your friends
and family.
But be careful— after all bitter
arguments shouldn't be a part of anyone's
business plan.
Here are some tips on how you should think
about this method.
One, think of it as a professional
relationship.
So it's clear how seriously
you're taking it.
Two, show them your business plan.
Three, sign a contract.
This last step is very important so
you can avoid any #drama at next
year's Thanksgiving.
It's a miracle how some plants
can make something out of just a few
resources, and your business can too.
That proves that where there's a
will, there's a way.
And no matter how much funding you
have access to, you can make your small
business tree grow.
I believe in you.