Bankrolling any startup business is difficult enough. Capitalizing a new home builder operation is a leap forward in required funds. Typically, small businesses can be capitalized on a shoestring budget, for a new home contractor, just a little bit isn’t going to work.
How to Raise Capital
How to raise capital is a series of articles helping the small business entrepreneur seek out potential investors by grouping the investors into tiers of similar nature. From here, a process is used to identify and satisfy potential investors with information and getting them on-board as fully committed to the venture. From there, the ‘ask’ is made for the investment. Once accepted, a process is used to negotiate and finalize the deal.
All vendors look for avenues to expand their market share or maintain their market share. Many times it is to their benefit to provide start-up capital to potential point of sale opportunities. If they can assure themselves of a long term buyer of their product or service, then they will give serious consideration to a new business opportunity.
There is one responsibility of all business entrepreneurs that is loathed more than any other. It’s asking for money. First off, you have to find financial resources and then you have to ask for money. This article is dedicated to finding money and how to ‘ask’ for the money from a family member. It is easier than you think.