If you are an entrepreneur who needs to help in finding small business ideas before writing a business plan, then this article will provide you a quick summary that you can reference.
Many startups rely on two things before they decide what kind of business to launch:
1. Experience In The Industry
2. Access To Capital.
If you are an entrepreneur who has a passion for a new idea but zero background, it is highly suggested that you partner up with 2-3 co-founders that can give you the credibility to get financed.
Further, you need to be realistic on the type of access to capital you have.
Is it SBA loans (only if you have great credit and/or real estate), angel investors (friends, family, former business partners), or venture capital?
Sometimes having a few co-founders will easily attract the capital that you need.
Now in terms of realistic expectations, it’s best to do some research to see what kind of similar companies or competitors you have that raised money and how much.
A lot of entrepreneurs contact us with unrealistic funding goals that are way too much or not enough.
Many places like Fundable, Angel List, Fast Company, and others discuss which companies were founded and how much.
Your next key asset is to prepare a business plan that will get someone to write you a check.
You have the option of downloading off the shelf business plan software and trying to guess what to put in there, or ideally you are realistic and practical and will hire a third party business plan consulting firm that can prepare your professional plan so it is investor ready.
But you really need to think about the big picture and decide if your business goals will be small, or have the potential to be the next hot mobile app, technology company, restaurant chain, or other growing business that can increase revenues every year and have a strategic exit (IPO, sale, etc.).
If you would like some additional guidance on writing a professional business plan and raising capital, please feel free to fill out our online form or contact us at 310.651.0799