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Letters to the Editor
How Do I Find Capital to Start a Business?
A
reader emails -- " I read with enjoyment
your article on the "on-again, off-again entrepreneur."
I COULD be this person in the making. [I have an idea
for a leisure business.] Herein lies my problem: I
have no capital. Any great venture capitalists out
there I can trust?"
Our
answer -- Venture capital probably is not
going to be fruitful. Fewer than 1% of startups get
VC money. Usually it is for some hot technology sector
business, not a leisure industry business. Most startups
find they waste 6 months when looking for VC money
-- 6 months they could have put to better use.
Instead,
why not try one of these tried and true strategies
for finding startup money:
(1)
Go to extended family and friends who may have excess
cash to invest. They know you and trust you.
(2)
Find an angel investor in your local community. Usually
the business lawyers and accountants know who has
the money in town, so ask around. Your business idea
is exactly the sort of thing that might interest an
angel, perhaps a business owner in a related industry who wants to branch out.
(3)
Work two jobs and save up money on the side. That’s
how a lot of entrepreneurs start. Find something you
can do or sell on the side that brings in revenues,
and use all of the second-job money to fund a grubstake.
*
* * * * Good
luck. I know it is challenging, but if you want it
badly enough you will find a way to make it happen. |
