How To Find Funding Now, Part 1 of 5 (Views: 2103)
How To Find Funding Now: An Action Plan for Entrepreneurs is a hand crafted whitepaper brought to you by the experts here at Fundica. We'll be posting about the four main steps to funding funding: identifying potential funding opportunities, validating the funding opportunities, applying for each funding opportunity and verifying ea h funding application.
It takes money to make money. Entrepreneurs know this better than anyone, which is why they’re always looking for funders who can help them achieve their business goals. But realistically, how much funding is out there for them?
According to our estimates, Canadian companies alone have access to more than 2,500 funding programs and products, representing at least $24 billion in corporate funding from public and private sources. These figures include a full range of funding opportunities, such as grants, tax credits, loans, loan guarantees, and equity funding programs.
Although we can’t currently estimate the total amount of funding available to American companies, the U.S. market is, of course, ten times larger than its Canadian counterpart, suggesting that funding opportunities could also be greater by an order of magnitude.
So there is funding available. The real challenge for entrepreneurs is finding and identifying the right opportunities without neglecting their core business. What they need is an effective process—supported by time-saving tools and experienced advisors.
This white paper presents a four-step action plan for busy, cash-strapped entrepreneurs who want to find and secure corporate funding in the most efficient way possible.
“An entrepreneur without funding is a musician without an instrument.”
– Robert Rice Jr.
Be Smart About Funding—Expect ROI
There’s no such thing as “free” money. As with any other business activity, the effort required to find and secure corporate funding inevitably incurs cost.
Consequently, entrepreneurs should always view their funding options through a cost-benefit lens. Some funding opportunities are simply not worth applying for because the internal and external costs outweigh the benefits.
Labor usually accounts for the lion’s share of internal costs. This is how much the company pays employees to find and secure funding opportunities, and then perform ongoing administrative (reporting) tasks required by the funder. External costs can be a mixture of consulting fees, application fees, and interest charges (on loans).
Entrepreneurs who stay focused on the bottom line throughout the funding process are more likely to make good decisions and achieve a reasonable rate of return on the time and money they invest.
This has been Part 1: Introduction. Check the blog regularly for Parts 2 through 5 in the coming weeks!