→ Depending on the size and goals of your venture, you may need to seek financing from an “angel” investor or from a venture capital firm. But, most small businesses begin with a loan, financing from credit cards, help from friends and family, and so on.
Investment and lending options include:
- Venture capital
- Commercial (banks)
- Small Business Loans
- Accounts receivable specialists
- Friends and family
- Credit cards
→ For in-depth information on funding, see our complete guide on how to get your business funded, which includes detailed information on each of the above-mentioned options.
→ Note: A beautifully fleshed-out business plan does not guarantee you will get funded. In fact, according to Guy Kawasaki, the business plan is one of the least influential factors when it comes to raising money.
→ To stand a realistic chance of getting hold of the funds you need to get started, you’d be better off first focusing on your “pitch.” Not only will it be easier to fix because it contains less, but you’ll also get feedback on it—most investors don’t bother reading the full business plan, though they may still expect you to have it.
→ It’s also much easier to turn a pitch into a business plan than it is to pare back your plan.