How to Get Funding for a New Invention

scholarship

If you have just thought of a new invention that could revolutionize the world as much as Babbage’s programmable computer, but have come to a hiatus because of funding you might find some of the ideas in this blog beneficial. We look at ways and means of raising capital, to take your brilliant idea or invention to the next level and possibly a reality.

Be Businesslike

The first rule about raising capital is to be businesslike, have all the facts and figures all worked out before you approach anybody. You must be able to answer every and any question about your invention or business idea, plus forecasting figures of when it could become profitable.

Look for Grants

One of the cheapest forms of raising capital is by a business grant, this could be in the form of a loan or a free government program. Many branches of federal and local government have funding to give grants for deserving cases. Investigate each and every one of them, and see if your business could benefit.

Look for an Investor

Looking for an outside investment is called venture capital, this is commonly the second or third step of raising funding to start a business. Quite often the first step is funding from savings or a small bank loan, perhaps a gift from a parent. But as the business takes off you will need some other sort of revenue to enable your company to grow. By now you should have your business plan all put together.

Become an Entrepreneur

If funding is becoming impossible to get, then why not do it all yourself, and become an entrepreneur. You can distribute, market, sell, manufacture all by yourself until your business is profitable and interests investors. To do this you have to be 100% motivated and be prepared to roll up your sleeves and graft.

Scholarships

If you are a young investor, then your youth may be on your side. Many colleges and universities offer prizes or scholarships to young entrepreneurs or inventors. This could be in the form of cash money or the ability to use facilities. Many great businesses around the world today have started in such a manner with the aid of a university’s facilities, knowledge and technological expertise behind them.

Crowdsourcing

Last but not least is to try and use crowdsourcing, tell your story in such a manner that complete strangers invest in you. You may promise in return to give back their money with interest, but often if your idea is beneficial to others then you may find donations are easy to come by. For instance, inventions to do with the environment, or green issues are highly popular to the general public and will be beneficial to the planet also.

Whatever route you decide to go down to raise funds to get your ideas off the drawing board, always think things thoroughly through first. There is no point signing your company away just to raise a few bucks at the start, make up your business plan and stick to it. Try not to be swayed by the first offer that comes your way.