Best Ways to Raise SEED Funding (credit, lend, mortgage, loans)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Forget friends & family, that is not a good idea. It does usually cost $$$ to get to a Minimum Viable Product.
For the software related business I have figured out and completely drawn-up it will cost at least $300,000 in development costs and no banks will lend that with $0 revenue. I am not a techie, not a coder so I need to pay for that work to be done either by hiring people as employees or by off-shoring it. So any suggestions?
Mortgage your house, use your savings, cash in some of your retirement account.
That's what most people do when they start a business.
What if you don't own your home?
What are some other ways to get seed money to start a business? Is the best way to save for a 5-10 years then start it? (Serious questions...not snarky)
Is the best way to save for a 5-10 years then start it? (Serious questions...not snarky)
Yes.
You could try to raise money from private investors, but it's difficult and you'll have to give up a portion of your business to them in exchange for funding.
You could also get a personal loan if you have decent credit and/or are willing to pay a ridiculous interest rate. If you're trying to raise $300,000 like the OP, this isn't a viable option obviously.
Still, the best way to do it is save for a few years, but I realize everyone's situation is different and that may not work for some.
Nobody is going to loan you money unless you can prove that you can pay it back. With an idea that isn't even a business yet, there is no way to prove income.
Most business entrepreneurs start with their own funds and get money from their parents. If the business idea is really brilliant, you can sell a large percentage of the business for start up money. But even then, you have to be able to prove you know how to start and run the business and investors like to see the business already organized and systems in place. You have to show that you know how to sell the product.
If you patent your idea, you might be able to get a good qualified coder to come in as a 50% partner in exchange for doing the work.
Forget friends & family, that is not a good idea. It does usually cost $$$ to get to a Minimum Viable Product.
For the software related business I have figured out and completely drawn-up it will cost at least $300,000 in development costs and no banks will lend that with $0 revenue. I am not a techie, not a coder so I need to pay for that work to be done either by hiring people as employees or by off-shoring it. So any suggestions?
you want $300k to start a software business but you arent a techie or a coder. that probably means you cant raise money for the business outside of personal loans or your own assets.
What are some other ways to get seed money to start a business? Is the best way to save for a 5-10 years then start it? (Serious questions...not snarky)
I'm not being snarky either when I say 99.9% of businesses do not get seed money from strangers/investors/banks.
Most start very small, investing their own money and mostly time, working late hours and weekends getting the business set up and rolling, if it's a workable idea. Not all ideas will work in real life. People may not want your idea or you may not be able to offer it at an affordable price.
You could work part time in a similar business, saving the money and learning the ropes, while working on your business plan.
You could try to raise money from private investors, but it's difficult and you'll have to give up a portion of your business to them in exchange for funding.
You could also get a personal loan if you have decent credit and/or are willing to pay a ridiculous interest rate. If you're trying to raise $300,000 like the OP, this isn't a viable option obviously.
Still, the best way to do it is save for a few years, but I realize everyone's situation is different and that may not work for some.
Thanks. The amount I'm thinking of is way less than OP's needs.
I'm not being snarky either when I say 99.9% of businesses do not get seed money from strangers/investors/banks.
Most start very small, investing their own money and mostly time, working late hours and weekends getting the business set up and rolling, if it's a workable idea. Not all ideas will work in real life. People may not want your idea or you may not be able to offer it at an affordable price.
You could work part time in a similar business, saving the money and learning the ropes, while working on your business plan.
Thank you for the advice.
Its important to be realistic before embarking on big ideas so I appreciate your candor.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.