When starting a business, one of the first questions you should ask is how you are going to fund that business. A mistake that many new entrepreneurs make however, is coming up with a plan for small business funding without first considering whether or not they actually need to raise money first. Below is a list of resources which will help you determine when you should consider raising money, the different ways you can go about funding your business, and what potential investors are going to require.
If you come across other resources that should be included in this list, or have any other comments/questions please let us know in the comments section below.
Forbes: 8 Reasons Bootstrapping Makes You a Better Entrepreneur – Raising money for your business can actually lower your chances of success. Here’s why.
Mashable: Bootstrapping a Business Series – Mashable interviews entrepreneurs about what its like to bootstrap a business and what they wish they knew before they started.
Quora: Their Bootstrapping Thread – A great discussion on the ins and outs of bootstrapping a business.
Forbes: 6 Reasons Why You Shouldn’t Raise Money for Your Business – Raising money is not always the smart move.
Mark Suster: 8 Questions to Help You Decide if You Should Raise Money Now – Primarily relating to technology startups from a successful entrepreneur turned VC.
Entrepreneur: How to Raise Money For Your Business – An in depth overview of the 18 different ways you can raise money for your business.
FoundersSpace: Use Credit Cards to Fund Your Startup – An overview of one of the riskiest ways to fund your new company.
StartupFunding101: Friends and Family Pitch Basics – how to raise money from friends and family.
Fast Company: 5 Lessons for Raising Money From Family and Friends – From someone who has done it twice themselves.
PowerHomeBiz: Thinking of Getting a Bank Loan? – 5 questions you will need to know the answer to.
VentureBeat: 3 Ways to Raise Money if You Don’t Know Any Investors – Need money for your business but don’t know anyone who can afford to invest? You are not alone.
StartupFunding101: Where to Find Angel Investors – And how to avoid paying middlemen and get the funding done yourself.
Forbes: 10 Ways to Attract Angel Funding – The 10 steps you need to take before you go out and start pitching your business to Angel Investors.
CrowdFundingGuides: The Crowdfunding Bible – Everything you need to know about raising money for your business through crowdfunding.
VentureBeat: An Idiot’s Guide to Venture Capital – What you need to know about raising money from venture capitalists.
SBA: Loans and Grants – What you need to know about getting a loan from the Small Business Association.
BusinessWeek: The Guide to Business Incubators – Their whole section with articles on everything you want to know about business incubators.
Harvard: Pitch Book Builder – a wizard that walks you through the steps of creating your investor pitch book.
SeedCamp: 7 Reasons for Investors to Avoid Tranched Investments – A “tranched investment” is an investment that is split into one or more parts.
Paul Allen: Raising Seed Capital – Some great stats on the percentage of businesses that are funded by which methods.