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How many times have you heard that it’s hard to get funding? It’s a common refrain and every entrepreneur has wondered how to better raise capital. The truth is that it’s not nearly as hard as you think.
Here are some common myths about funding a business and how they don’t hold up in real life.
- VCs just want Harvard and Stanford grads
There are plenty of examples of Harvard and Stanford dropouts starting billion dollar companies. You can probably name a few just off the top of your head. The truth is that those people are the exception to the rule. Many entrepreneurs don’t have that academic pedigree and most get started much later in life. You don’t have to have the same trajectory as Mark Zuckerberg or other famous entrepreneurs. Let your ideas do the talking.
- You need specific industry experience
This is another common myth. When it comes to software engineering, it certainly helps to have a Silicon Valley background. There are plenty of other cases where entrepreneurs built on their industry experience to launch a new product. That industry experience is a stepping-stone, but it’s not essential. Many entrepreneurs have built disruptive companies without direct experience in that industry. Elon Musk founded Tesla after revolutionizing the digital payments space. Figure out what core skills you bring to the table; you’ll probably find that they are much more transferrable than you think.
- You need connections to get capital
Having deep connections in Silicon Valley or on Wall Street definitely helps when it’s time to raise money. Building those relationships will certainly make your life easier. Are they essential? Absolutely not. In a strong economy, investors are willing to put money behind entrepreneurs and ideas that they truly believe in. It’s also easier than ever to get your business off the ground and start out solely online. Demonstrating success without abundant capital is the easiest way to convince investors to open their checkbook.
- You need sales to attract investment
This might be confusing after explaining Myth No. 3. One way to attract capital is to show you can bootstrap and still make money. But what if you’re not there yet? Sometimes you need to sell your idea instead of a product that’s ready to hit the shelves. One way to get funding is to develop a unique, marketable, and more importantly patented, idea. You may not even need to develop a marketing or distribution plan. Investors may have the contacts to license your innovation to larger companies. Sometimes a good idea goes a long way.
- The process to get funding is hard and complex
This is another myth that’s easy to disprove. It’s easier than ever to get capital; you just need the right partner. Rapid Finance specializes in getting small businesses the loans and credit they need without the hassle of going to a big bank. You can take out merchant cash advances, secure loans against invoices or other assets, or finance major business expenses. You can focus on growing your business while Rapid Finance finds a way to make your vision a reality.
Many entrepreneurs take these myths for granted. Don’t make the same mistake! Getting funding isn’t hard if you’ve got a good idea and can execute. Contact Rapid Finance today and see how you can get the financing you need.