Category Archives: Investors

Should you use crowdfunding to help finance your business?

Should You Use Crowdfunding to Help Finance Your Business?

Starting a small business can be costly, but did you know that you can use crowdfunding to help alleviate some of those costs?

Our latest infographic, “Is Crowdfunding Right for Your Small Business?,” shows what types of crowdfunding are available and the different benefits of each.

In 2018, the United States alone raised $1,038,000 in crowdfunding. This amount is expected to show an annual growth rate of 10.4%, resulting in a total amount raised of $1,298,000 by the year 2022. From a global perspective, that amount is even higher – China raised $7,463,000 in 2018!

What Types of Crowdfunding Are There?

There are three types of crowdfunding options available for your business: reward-based, equity, and debt.

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What makes or breaks a successful small business?

business colleagues high fiving

What makes or breaks a successful small business? There are several key commonalities among businesses that succeed, according to several studies polling entrepreneurs.

Here’s a closer look at four things successful business owners do right—and one thing they need to do better.

What successful entrepreneurs do right

  1. They start strong. In a poll of 500 successful entrepreneurs, a whopping 84% of respondents say their companies achieved profitability within their first four years in business. In fact, 68% became profitable within the first year. Only 8% became profitable after their fifth year in business, suggesting that the first years in business are make-or-break ones for most entrepreneurs.
  2. They focus on finding new customers. Small business owners in the survey say finding new customers is their top business challenge—far ahead of cash flow issues or dealing with the competition. Smart entrepreneurs stay focused on continually generating new leads and closing new business.
  3. They put cash back into the business. Forty percent of business owners say whenever they have surplus cash, they put it back into the business rather than paying themselves, a separate study found. What’s more, 47% tap into personal savings to finance their businesses at one point or another.
  4. They work hard. Never let it be said small business owners are slackers. Some 86% work on the weekends; 23% take fewer than two vacation days total all year long; and of those who do take vacations, 75% work during their time “off.” Continue reading

Here’s how to fund your business.

by Kelly Deis of SoundPoint Consulting

So, you have a great idea for a start-up or you want to expand your current business. You have the perfect business plan and are confident that both revenue growth and profitability are sure-fire.

Problem is, you don’t have the capital to fund the start-up or expansion. If that is the case, here are a few ways to fund your business. Which one is right for you?  Continue reading

8 things you can do to be taken seriously as a young entrepreneur.

By Caron_Beesley, SBA Contributor

Are you a teenager or in your early 20s? Do you have a great business idea? Perhaps you’re already making headway towards starting your own business.

But how do you get others to believe in you and your business idea?

Here are eight surefire ways that you can be taken seriously as a young entrepreneur:  Continue reading

April 20: How The Angel Investment Process Really Works

You only get one chance to make a great first impression with angel investors.

In this webinar, Martin Zwilling, founder of Startup Professionals and accredited angel investor, will provide his insights into the world of angel investing when he discusses:

  • Milestones entrepreneurs need to achieve before approaching angel investors
  • Recommended preparation and processes for meetings with investors
  • Timing, preparation and discussion topics for any investor meeting

[ REGISTER NOW ]

ABOUT THE PRESENTER

 Martin  Zwilling Marty Zwilling is the Founder and CEO of Startup Professionals as well as a regular contributor to Forbes and Entrepreneur. In addition to writing “Attracting an Angel,” Zwilling is an an accredited angel investor.

Martin Zwilling

How to find the right investor for your small business.

By Caron Beesley, Contributor

Although small businesses still turn to credit unions, community banks, and traditional banks for their capital needs, outside equity such as angel investment and venture capital, are  valid options. In fact, the venture and angel capital industries are experiencing a sharp increase in demand thanks to a greater certainty in the domestic economy.

If you’re looking for a private equity firm, venture or angel capitalist to fund your business, what are your options? Below are some tips for identifying the right fit for your needs and taking those important first steps.  Continue reading

Crowdfunding rules are changing to meet small business needs.

Have you considered crowdfunding for your small business but thought it was too complicated or too risky? Did you think it was just an option for one-off projects instead of long-term business sustainability? As crowdfunding gains popularity, more options are becoming available for small- and medium-size businesses.

Crowdfunding is growing beyond rewarding perks to friends and strangers who donate to your efforts. Now, thanks to a new law, regular-Joe investors can get a piece of your company’s equity pie.

Continue reading

Does your small business need an angel?

If you’ve ever watched Shark Tank, you might recognize the cast of “sharks” as angel investors. Each shark has seen considerable success in business in the past and wants to put their personal money toward exciting new ideas.

And boy, do they invest. Sometimes the sharks offer hundreds of thousands of dollars — and expect to own a big percentage of the company in return. They make a lot of deals, but sometimes the new entrepreneurs are the ones turning down offers, not the other way around.

While the idea of jumping into a sea of sharks might be scary, try not to be intimidated by the idea of asking an angel to invest in your business.

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Angel investors get their name from their supportive nature. Instead of expecting an immediate return on their investment in a new business, angels instead take a percentage of the company, later enjoying the profits from their investment as the company grows.  Continue reading

Yes, you can write a great business plan.

by William A. Sahlman, Harvard Business Review

Few areas of business attract as much attention as new ventures, and few aspects of new-venture creation attract as much attention as the business plan. Countless books and articles in the popular press dissect the topic. A growing number of annual business-plan contests are springing up across the United States and, increasingly, in other countries. Both graduate and undergraduate schools devote entire courses to the subject. Indeed, judging by all the hoopla surrounding business plans, you would think that the only things standing between a would-be entrepreneur and spectacular success are glossy five-color charts, a bundle of meticulous-looking spreadsheets, and a decade of month-by-month financial projections.  Continue reading

Are you thinking about crowdfunding your business?

Crowdfunding is the new frontier for financing projects and businesses, allowing you to reach into the pockets of more people than ever before. Say you’ve got a brilliant idea but don’t have the start-up money to get it off the ground—learn exactly how crowdfunding can help your project take off, while understanding the do’s and don’ts of the business. Learn more