I have thought up a new idea/venture, and am looking to get its development going. However, I have a feeling it is going to cost a tad to get things moving along. It shouldn't be that large of a sum (low $x,xxx range), howevever, and would be completely viable for me to come up with this amount on my own . . . however at the moment I don't exactly have money get things moving, and would like to start as soon as possible. So my question: would it be reasonable in this situation to find financing or an investor? And if it is, how would you go about doing this?
Well, it would depend. When I started my small online businesses, banks and 3rd party investors would not invest in me because all I had was an concept and the skills but nothing to put down as colletarels and as such, I've got locked out from the source of financing. In the end, I scraped whatever savings I have, borrowed from family and maxed out my credit cards to get it started. The trouble with relying on others for financing is that they need to be certain that they will reap more than what they put in and they want something to hold againsts your words if your business fails. It is only when you are willing to risk everything you have that they may be willing to open up their purse string to finance you. For small amounts, I would think that it is best to finance it yourself and remove any headache that you may have in getting the financing. Work a little longer and saved that money and while you wait, develop that idea to a full-fledged plan with all the necessary Plan B and Exit plans. If your business develops to something and you need the extra Vitamin M to boost it to the next level then at that point of time, approach the investors will your track records and business plans and you will be able to secure your financing. Investors would be more willing to bet on a sure-win.