In our 25 years in the Injection Molding industry in Texas, we have worked with many entrepreneurs with incredible ideas that just never got off the ground. Ultimately, lack of funding and planning was the biggest cause for failure. The axiom “it takes money to make money” applies to most business models; so how do entrepreneurs raise money to fund big ideas? The good news is that there are more resources and financial support to fund startups and small businesses than ever before. We’ve put together this guide to help you get started.

The difference between Startup and Small Business

The term ‘startup’ is generally applied to business ideas with a potentially large customer base, focused on very rapid growth. Of course this could apply to any kind of venture, but is usually used to describe technology companies because the Internet traverses time zones/regions and opens up huge possible audiences for digital products.

Conversely a ‘small business’ usually is focused on a smaller, local niche market and expects growth on a smaller scale. The lines between these two terms are becoming blurred, thanks to e-commerce service sites (e.g. Etsy, Amazon) and the distribution possibilities they offer.

Getting Started

Today’s constantly changing business landscape will require most small businesses get their funding from various sources over time. During this process it’s important to apply the right outlook that will attract investment – whether it will come from banks, investors, grants or grandma. Before thinking about funding, you need to make a business plan. The type of business plan will depend on the type of funding required, as different investors and institutions will each want to see different kinds of information before taking a risk. Focus on the WHY not the WHAT. What kind of problem does your idea solve and how?

Family, Friends and Your Own (not-so-deep) Pockets

If you are thinking about financing you probably have made some kind of investments yourself, whether dipping into savings or using your credit cards. One of the first places to look for financing will be with your family and friends, but as my Dad always said: one of the easiest ways to lose a friend is to lend or borrow money. So if you go this route, think of the loan as a high interest loan or treat the deal as you would with any other investor. Set real expectations and obligations and do so in writing.

Small Business Microloans and the SBA.

There are many resources to help start new businesses and help established ones grow. One example is the LiftFund, which helps startups and small businesses owners from Texas to South Carolina with limited capital make their dreams a reality. There are other types of sources like LiftFund across the country and the world.

There are other types of sources like LiftFund across the country and the world. The SBA (Small Business Administration) offers loans, grants and even venture capital.

Crowdfunding

If you are good at making fun videos and can come up with some creative rewards for funders, crowdfunding may be worth looking at. We’ve all heard the million dollar funding stories from Kickstarter or Indiegogo. But what we rarely hear about are the heartbreak stories where funders don’t come through, or project owners can’t deliver the promised product. Before jumping in headfirst, I suggest reading The Crowdfunding Bible by Scott Steinberg. You can download it for free here. Remember not to expect that just because you have a great idea, everyone will want to fund it. The best way to find funders for your crowdfunding campaign is to already have an audience to pitch to. For many startups and small businesses this simply isn’t a reality.

A new hybrid of crowdfunding is starting to appear: for example, texasenetworks.com offers localized crowdfunding, venture capital, business loans and more all in one place.

Community Programs for Entrepreneurs

Another place to get a quick start is by attending a community program for entrepreneurs. Many offer co working spaces, free seminars, classes, networking opportunities, funding guidance and help with your business plan.

In San Antonio, Texas, Café Commerce offers many resources to entrepreneurs at no cost.

Houston boasts the largest business accelerator in Texas, The Houston Technology Center.

In Dallas, you can find a ton of entrepreneur resources at the North Texas Small Business Center Network.

In Corpus Christi, The Corpus Christi Chamber of Commerce has been mentoring small business owners for more than 40 years. Visit their Small Business Toolbox here.

In the Rio Grande Valley, you can visit the UTPA’s Small Business Development Center or the SBA’s Harlingen office.

National and International Programs

You can find similar programs around the country by searching for the keywords: “business accelerators” or “Community Entrepreneur Programs”. These programs are not limited to the U.S. and can be found around the world.

Google Entrepreneurs offers similar programs in Madrid, London, Seoul, Warsaw, Sao Paolo and Tel Aviv.

In Panamá’s “City of Knowledge” they even have an innovation center which helps put Startups and Entrepreneurs together with investors.

Mexico has a business accelerator program and a small and medium business fund.

As you can see, the possibilities are within reach and you don’t have to have connections to billionaires to get funded. Innovation and disruption is the lifeblood of economic change and growth. Who knows, maybe you’ll be the next Steve Jobs or Elon Musk and maybe we’ll have the chance to injection mold or manufacture your big idea! Happy hunting.