How to Evaluate a Business Idea before Taking the Plunge

1. Introduction

After selecting your business idea, take some time to first evaluate it to see if it has the legs you hope
it does. The very first step of the process is to do some research and analysis to dig into the potential
of your idea. Here are a few ways to get you started.

a) Identify a Target Market

b) Know What Makes Your Product/Service Different
c) Research the Competition
d) Conduct a Financial Feasibility Analysis

2. Identify a Target Market

The most important step of qualifying a business idea is determining who will be buying your product
or service. You need to create a picture of your ideal customer. Consider factors such as age, gender,
education level, income, and location. The more you can narrow down the picture of your ideal
customer the better. You won't be able to figure out if there is a market for your product or service
until you have a very clear idea of who are selling it to.

Then, you need to conduct a market analysis — research to determine how big the market is, how
saturated it is and if there is room for you to add your product or service to the mix. This guide to
conducting marketing research is a great place to start.

It can also be helpful to create a test segment of your target market and conduct a focus group or a
survey to find out who they really are. Then, you can decide if it makes sense to launch your business
to a segment of your market to gauge response before committing fully to your business idea.

3. Know What Makes Your Product/Service Different

During your research, you will probably discover that there are other businesses already offering the
same or similar products and services to your target market. This doesn't necessarily mean you won't
be successful if you launch your business, but it certainly means you need to identify what makes
your products and services different from the competition. You can do this by creating a unique
selling proposition (USP).

A USP identifies what makes your business different, and why your target clients should choose you
over the competition. Your USP can be a very effective tool that helps you define your brand and
make your business memorable. This guide to writing a USP will help you get started.

4. Research the Competition

Just as you need to know who your ideal customer is, you also need to know who else us out there
marketing to them. This is why it's really important to get an idea of who your competitors are before
you move ahead with your business idea.
Two excellent tools for researching your competition are a competitive analysis and a SWOT
analysis.

5. Conduct a Financial Feasibility Analysis

Another very important factor that plays into the validity of a small business idea is money. What will
it cost to get your business off the ground? Where will that capital come from? What are your start-up
and ongoing expenses? What is your earning potential once you're up and running? How will you
bridge the financial gap between the start-up process and profitability?

This guide to conducting a financial analysis will help you get started gathering financial data. You
will want to make sure you consider all potential capital sources, while you think about how you can
bootstrap and limit the investment needed up front.

This may all seem like a lot of work, but you will be glad you did it. If you determine that your
business idea isn't going to work, you may be disappointed but you will avoid wasting time and
money on a likely failure. If it looks like your small business idea has potential once you've done your
research, you will have a running start for the next step of the business start-up process — creating a
business plan.
 Business Plan Outline
1) The Executive Summary

While appearing first, this section is written last. It summarizes the key elements of the entire business
plan and is the first thing anyone looking at your business plan reads so it's critical that your executive
summary is outstanding. (Reading this Executive Summary Example will give you a sense of how to
put yours together.)

2) The Business/Industry Overview

An overview of the industry sector that your business will be a part of, including industry trends,
major players in the industry, and estimated industry sales. This section will also include a summary
of your business's place within the industry.

3) Market Analysis

An examination of the primary target market for your product or service, including geographic
location, demographics, your target market's needs and how these needs are being met currently. Your
purpose here is to show the reader of your business plan that you have a thorough knowledge of the
people you are planning to sell your goods and/or services to - so thorough that you can make
educated predictions about how much of your goods and/or services they might buy.

4) Competitive Analysis

An investigation of your direct and indirect competitors, with an assessment of their competitive
advantage and an analysis of how you will overcome any entry barriers to your chosen market. In this
section of the business plan, you need to distinguish your business from the competition, persuading
the reader(s) of your plan that your business will be able to compete successfully. 

5) Sales and Marketing Plan

A detailed explanation of your sales strategy, pricing plan, proposed advertising and promotion
activities, and product or service's benefits. This is where you present the reader with your new
business's Unique Selling Proposition, describe how you're going to get your goods and/or services to
market and how you're going to persuade people to buy them.

6) Ownership and Management Plan

An outline of your business's legal structure and management resources, including your internal
management team, external management resources, and human resources needs. If the goal of your
business plan is to get funding, it's wise to make sure that your management plan includes an advisory
board as a management resource.
7) Operating Plan

A description of your business's physical location, facilities and equipment, kinds of employees
needed, inventory requirements and suppliers, and any other applicable operating details, such as a
description of the manufacturing process.

8) Financial Plan

A description of your funding requirements, your detailed financial statements, and a financial
statement analysis. This part of the business plan is where you will present the three main financial
documents of any business, the balance sheet, the income statement and the cash flow statement. (In
the case of a new business, this last document will be a cash flow projection.) The instructions on
writing the Financial Plan section will show you how to prepare all of these documents.

9) Appendices and Exhibits

In addition to the sections outlined above, at the end of your business plan you will also want to
include any additional information that will help establish the credibility of your business idea, such
as marketing studies, photographs of your product, and/or contracts or other legal agreements
pertinent to your business.
 Target Marketing
Target Marketing involves breaking a market into segments and then concentrating your marketing
efforts on one or a few key segments consisting of the customers whose needs and desires most
closely match your product or service offerings. It can be the key to attracting new business,
increasing your sales, and making your business a success.

The beauty of target marketing is that by aiming your marketing efforts at specific groups of
consumers it makes the promotion, pricing, and distribution of your products and/or services easier
and more cost-effective.

It provides a focus to all of your marketing activities.

So if, for instance, a catering business offers catering services in the client’s home, instead of
advertising with a newspaper insert that goes out to everyone, after identifying the target market for
their services, the catering company could target the desired market with a direct mail campaign,
a flyer delivery that went only to residents in a particular area, or a Facebook ad aimed at customers
within a specific geographic area, increasing the return on investment on their marketing - and
bringing in more customers.

Social media platforms such as Facebook, LinkedIn, Twitter, and Instagram have sophisticated
options to allow businesses to target users based on market segments. A Bed and Breakfast business
could target married Facebook followers with an ad for a romantic weekend getaway package, for
example. LinkedIn is more B2B oriented - you can target businesses by a variety of criteria such as
number of employees, industry, geographic location, etc.

While market segmentation can be done in many different ways, depending on how you want to slice
up the pie, three of the most common types are:

Demographic Segmentation

Demographic grouping is based on measurable statistics, such as:

 gender
 age
 income level
 marital status
 education
 race
 religion  

Demographic segmentation is usually the most important criteria for identifying target markets,
making knowledge of demographic information crucial for many businesses.
A liquor vendor, for instance, might want to target their marketing efforts based on the results of
Gallup polls, which indicate that beer is the beverage of choice for people below the age of 54
(particularly in the 18-34-year-old age range) while those aged 55 and older prefer wine.

Geographic Segmentation

Geographic segmentation involves segmenting the market based on location. Home addresses are one
example. However, depending on the scope of your business this could be done by:

 neighborhood
 postal/zip code
 area code
 city
 province/state
 region
 country (if your business is international)

Geographic segmentation relies on the notion that groups of consumers in a particular geographic area
may have specific product or service needs; for instance, a lawn care service may want to focus their
marketing efforts in a particular village or subdivision that has a high percentage of seniors.

Psychographic Segmentation

Psychographic segmentation divides the target market based on socio-economic class, personality, or
lifestyle preferences. The socio-economic scale ranges from the affluent and highly educated at the
top to the uneducated and unskilled at the bottom. The UK-based National Readership Survey defines
social class according to the following categories:

Social Grade Social Status Occupation

A  upper middle class higher managerial, administrative or professional
B  middle class intermediate managerial, administrative or professional
 lower middle class supervisory or clerical, junior managerial, administrative
C1
or professional
C2  skilled working class skilled manual workers
D  working class semi and unskilled manual workers
those at lowest level of state pensioners or widows (no other earner), casual or
E
subsistence lowest grade workers

The lifestyle classification involves values, beliefs, interests, etc.  Examples include those who prefer
an urban as opposed to rural or suburban lifestyle, or those who are pet lovers or have a keen interest
in environmental issues.

Psychographic segmentation is based on the theory that the choices that people make when
purchasing goods or services are reflections of their lifestyle preferences or socio-economic class.

Target Marketing Case Study - McDonald's Restaurants

McDonald's Restaurants is the largest fast food chain in the world and one of the most successful
examples of demographic target marketing, aiming their products at children, teenagers, and young
urban-dwelling families by offering "Play Places", free wifi, "Happy Meals" that include toys such as
Walt Disney characters, and ad campaigns with slogans such as "Feed Your Inner Child". Targeted
advertising combined with aggressive pricing has enabled McDonald's to capture 25% of the fast food
market share in the U.S.

However, in recent years as millennials have surpassed baby boomers to become the largest
generation in the U.S., McDonald's sales have been in decline as fast food style menu items such as
the ubiquitous Big Mac and fries have lesser appeal to millennials. In response, McDonald's has
altered their marketing strategy to target the millennial generation by advertising fresher, healthier
menu options and upscale coffee products such as espressos.
 What to Include in the Market Analysis Section of a Business
Plan
The market analysis section of your business plan comes after the products and services section and
should provide a detailed overview of the industry you intend to sell your product or service in,
including statistics to support your claims.

In general, the market analysis section should include information about the industry, your target
market, your competition and how you intend to make a place for your own product and service.
Extensive data for this section should be added to the end of the business plan as appendices, with
only the most important statistics included in the market analysis section itself.

What Does a Market Analysis Section in a Business Plan Include?

The market analysis section of your small business plan should include the following parts:

 Industry Description and Outlook: Detailed statistics that define the industry including size,
growth rate, trends, and outlook.
 Target Market: Who is your ideal client/customer? This data should include demographics
on the group you are targeting including age, gender, income level and lifestyle preferences.
This section should also include data on the size of the target market, the purchase potential
and motivations of the audience, and how you intend to reach the market.
 Market Test Results: This is where you include the results of the market research you
conducted as part of your initial investigation into the market. Details about your testing
process and supporting statistics should be included in the appendix.

 Lead Time: Lead time is the amount of time it takes for an order to be fulfilled once a
customer makes a purchase. This is where you provide information on the research you've
completed on how long it will take to handle individual orders and large volume purchases, if
applicable.
 Competitive Analysis: Who is your competition? What are the strengths and weaknesses of
the competition? What are the potential roadblocks preventing you from entering the market?

Tips for Writing a Market Analysis

Here is a collection of tips to help you write an effective and well-rounded market analysis for your
small business plan.

1. Use the Internet

Since much of the market analysis section relies on raw data, the Internet is a great place to start.
Demographic data can be gathered from the U.S. Census Bureau, a series of searches can uncover
information on your competition, and you can conduct a portion of your market research online.

2. Be the Customer
One of the most effective ways to gauge opportunity among your target market is to look at your
products and services through the eyes of a purchaser. What is the problem that needs to be solved?
How does the competition solve that problem? How will you solve the problem better or differently?

3. Cut to the Chase

It can be helpful to your business plan audience if you include a summary of the market analysis
section before diving into the details. This gives the reader an idea about what's to come and helps
them zero in on the most important details quickly.

4. Conduct Thorough Market Research

Put in the necessary time during the initial exploration phase to research the market and gather as
much information as you can. Send out surveys, conduct focus groups, and ask for feedback when
you have an opportunity. Then use the data gathered as supporting materials for your market analysis.

5. Use Visual Aids

Information that is highly number-driven, such as statistics and metrics included in the market
analysis, is typically easier to grasp when it's presented visually. Use charts and graphs to illustrate the
most important numbers.

6. Be Concise

In most cases, those reading your business plan already have some understanding of the market.
Include the most important data and results in the market analysis section and move the support
documentation and statistics to the appendix.

7. Relate Back to Your Business

All of the statistics and data you incorporate in your market analysis should be related back to your
company and your products and services. When you outline the target market's needs, put the focus on
how you are uniquely positioned to fulfil those needs.

Market research begins with a definition of the problem to be solved or the question to be answered.
Typically, there are several alternative approaches that can be used to conduct the market research.

The Purpose of Step 1

The market research process consists of six discrete stages or steps. The task of the first stage of
market research is to articulate the problem that the research will address. This includes defining the
decision alternatives, and the research objectives. At first blush, this seems like an easy step. Aren't
marketing problems easy to spot and easy to articulate? Beginning a research project falls into the
category described as it looks easier than it is.

It is important not to define the market research problem too narrowly or too broadly. In the first
instance, a market researcher may find that the actual problem has been missed because the focus was
too narrow. Or even if the right research question has been addressed, other important variables may
not have been considered, such as barriers to prevent copying by other competitors. In the second
instance, too much information is likely to be collected - at considerable cost - and most of that data
will never be used.

The information is simply not sufficiently germane to the problem.

It is important to realize that it is not always possible to know the sweet spot in terms of scope until
the data collection has begun or has been underway for a time. A change in the problem statement in
qualitative research does not necessarily reflect poor planning. In fact, it may indicate new learning
and the iterative nature of qualitative research.

Why a Problem Statement Is Useful

Writing a problem statement to guide the research is both practical and important. A problem
statement clearly tells what is intended to be accomplished by the research, and so it is a very practical
step with regard to obtaining resources to be used to conduct the research. Writing a problem
statement is important because it points to how open or closed the research can be in its approach.

 Open research is associated with qualitative research approaches and closed research is
associated with quantitative research approaches.
 Quantitative research seeks to identify the relations among a set of variables.
 Qualitative research aims to gain some understanding of a phenomenon.

A market research project attempts to fill some gap in the knowledge about a phenomenon. In
conventional research, this task begins with a formal literature review. In market research, research
questions tend to come from internal clients about how to achieve a certain marketing objective or
another.

How Market Researchers Identify Meaningful Research Questions

One of the best ways to identify the knowledge gap is to jot down all the questions that the market
researcher or others have with regard to the research topic or situation. When the stream of questions
dries up to a trickle, it is time to look for categories under which the questions can be grouped. These
become the sub-categories. Either before or after creating the subcategories, look for an overarching
question. This overarching question will be the first draft of the problem statement or research
question.

An important difference between conventional research and market research is that the later is
decision driven. Backward-mapping from the business decisions can assist the business manager and
the market researcher to be on the same page with regard to priorities and aims of the research. That
said, it is not unusual for a market research project to be exploratory, descriptive, or causal rather than
decision-mapped research.

 Exploratory market research seeks to provide insights into the nature of a marketing problem,
come up with new ideas, or suggest a range of possible solutions to be considered. These,
then, might drive the identification of the business decisions.
 Descriptive market research might attempt to determine the magnitude of a marketing
variable.
  Some market research is experimental in form and aims to test a cause-and-effect
relationship.

The Six Steps of Research

 Step 1 - Articulate the research problem and objectives

 Step 2 - Develop the overall research plan
 Step 3 – Collect the data or information
 Step 4 – Analyze the data or information
 Step 5 – Present or disseminate the findings
 Step 6 – Use the findings to make the decision

Four Steps to Help You Identify What Makes Your

Business Unique
A unique selling proposition (USP), or unique selling position, is a statement that succinctly
outlines how your business, product, or service is different from that of your competition. It
identifies what makes your business the better choice, and why your target clients should
choose you over the competition.

Your USP can be an effective tool that helps you focus your marketing goals, and verify that
every piece of marketing collateral you create successfully sets you apart from the
competition. Your USP can also be an important part of your branding that makes your
business memorable.

This four-step exercise will help you write a unique selling proposition for your company,
new product, or service.

Go Back to the Basics

The first step of writing a USP requires that you take a step back and review some of the
basics included in your mission statement, business plan, market analysis, and overall
business goals.

Start by answering some preliminary questions that recap what your business is selling, who
you're selling it to and why you're selling it.

For example, a company that sells moving boxes may compile and answer questions like this:

 What products or services are you selling?

o Boxes and moving supplies.
 Who is your target audience?
o Local homeowners who are moving, and don't have a lot of time to look for
used boxes in order to pack.
 What does your business do well?
o We provide quick, responsive service while making the purchasing process
easy for our customers.
 What is your most important customer-focused business goal?
 o Helping our customers get the moving supplies they need quickly, easily, and
affordably.

Solve a Problem

The next step is to clearly identify your target audience's problem and explain how your
product or service solves that problem.

Our example company that sells moving boxes may identify the potential customer's problem
as not being able to easily locate the proper containers when they are packing their
belongings and preparing to move.

Identify the Differentiators

This step focuses on identifying what it is about your solution to your customer's problem
that is different, or better than, the solution your competition offers. The value you identify
here will be one of the primary reasons why your customers will choose you instead of a
competitor.

The potential differentiators of our moving supply company may be that they offer sturdier
boxes, less expensive boxes, complete packing solutions, same-day delivery, or exceptional
customer service.

Make a Promise

This step combines the most important elements of the previous steps into a concise
statement that embodies the value your company has to offer. Keep in mind that your USP
essentially implies a promise, or a pledge, you are making to your customers.

The moving supply company, for example, may create a USP that says simply, "Sturdy
Boxes in 24 Hours," aimed toward their overwhelmed customers who are getting ready to
move, and quickly need boxes that won't collapse.

Once you have a working USP, it's always a good idea to sleep on it, run it by others in your
company, or even create a focus group to measure the impact it has. It may take several tries,
but once you hit the perfect USP, it can be an integral element of your marketing toolbox.

How to Write the Competitor Analysis

Section of the Business Plan
The competitor analysis section can be the most difficult section to compile when writing a
business plan because before you can analyze your competitors, you have to investigate them.
Here's how to write the competitor analysis section of the business plan.

First, Find Out Who Your Competitors Are

If you're planning to start a small business that's going to operate locally, chances are you
already know which businesses you're going to be competing with. But if not, you can easily
find out by doing an internet search for local businesses, looking in the online or printed local
phone book, or even driving around the target market area. 

Your local business may have also have non-local competitors that you need to be aware of.

If you're selling office supplies, for instance, you may also have to compete with big-box
retailers within a driving distance of several hours and companies that offer office supplies
online. You want to make sure that you identify all your possible competitors at this stage.

Then Find Out About Them

You need to know:

 what markets or market segments your competitors serve;

 what benefits your competitors offers;
 why customers buy from them;
 as much as possible about their products and/or services, pricing, and promotion.

Gathering Information for Your Competitor Analysis

A visit is still the most obvious starting point - either to the bricks and mortar store, or to the
company's website. Go there, once or several times, and look around. Watch how customers
are treated. Check out the prices.

You can also learn a fair bit about your competitors from talking to their customers and/or
clients - if you know who they are. Other good "live" sources of information about
competitors include a company's vendors or suppliers and a company's employees. They may
or may not be willing to talk to you, but it's worth seeking them out and asking.

And watch for trade shows that your competitors may be attending. Businesses are there to
disseminate information about and sell their products or services; attending and visiting their
booths can be an excellent way to find out about your competition.

You'll also want to search for the publicly available information about your competitors.
Online publications, newspapers, and magazines may all have information about the
company you're investigating for your competitive analysis. Press releases may be
particularly useful. 

Once you've compiled the information about your competitors, you're ready to analyze it. 

Analyzing the Competition

Just listing a bunch of information about your competition in the competitor analysis section
of the business plan misses the point. It's the analysis of the information that's important.

Study the information you've gathered about each of your competitors and ask yourself this
question:
How are you going to compete with that company?

For many small businesses, the key to competing successfully is to identify a market
niche where they can capture a specific target market whose needs are not being met.

 Is there a particular segment of the market that your competition has overlooked?
 Is there a service that customers or clients want that your competitor does not supply? 

The goal of your competitor analysis is to identify and expand upon your competitive
advantage - the benefits that your proposed business can offer the customer or client that your
competition can't or won't supply.

Writing the Competitor Analysis Section

When you're writing the business plan, you'll write the competitor analysis section in the
form of several paragraphs. 

The first paragraph will outline the competitive environment, telling your readers who your
proposed business's competitors are, how much of the market they control and any other
relevant details about the competition.

The second and following paragraphs will detail your competitive advantage, explaining why
and how your company will be able to compete with these competitors and establish
yourself as a successful business.

Remember; you don't have to go into exhaustive detail here, but you do need to persuade the
reader of your business plan that you are knowledgeable about the competition and that you
have a clear, definitive plan that will enable your new business to successfully compete

How to Conduct a SWOT Analysis for Your

Small Business
A SWOT analysis is a strategic planning tool that helps a business owner identify his or her
own strengths and weaknesses, as well as any opportunities and threats that may exist in a
specific business situation. A SWOT analysis is most commonly used as part of a marketing
plan, but it is also a good tool for general business strategizing, and to use as a starting point
for team discussions.

When conducted thoroughly, a SWOT analysis can uncover a wealth of information and can
be useful in a number of situations. This article will walk you through how to conduct a
SWOT analysis and provide some tips that will help you use the tool effectively.

Using a SWOT Analysis Matrix

A SWOT matrix is usually depicted as a square divided into four quadrants. Each quadrant
represents one element of the SWOT analysis -- Strengths, Weaknesses, Opportunities,
Threats.
Questions to Ask During the Process

The easiest way to start filling in each quadrant in the matrix above is by answering a series
of questions. Use the list below to get started, focusing on the questions that are most relevant
to your business and current situation.

Strengths: For this quadrant, think about the attributes of yourself and your business that will
help you achieve your objective. Questions to consider:

 What do you do well?

 What are your unique skills?
 What expert or specialized knowledge do you have?
 What experience do you have?
 What do you do better than your competitors?
 Where are you most profitable in your business?

Weaknesses: For this quadrant, think about the attributes of yourself and your business that
could hurt your progress in achieving your objective. Questions to consider:

 In what areas do you need to improve?

 What resources do you lack?
 What parts of your business are not very profitable?
 Where do you need further education and/or experience?
 What costs you time and/or money?

Opportunities: For this quadrant, think about the external conditions that will help you
achieve your objective. Questions to consider:

 What are the business goals you are currently working towards?
 How can you do more with your existing customers or clients?
 How can you use technology to enhance your business?
 Are there new target audiences you have the potential to reach?
 Are there related products and services that provide an opportunity for your business?

Threats: For this quadrant, think about the external conditions that could damage your
business's performance. Questions to consider:

 What obstacles do you face?

 What are the strengths of your biggest competitors?
 What are your competitors doing that you're not?
 What's going on in the economy?
 What's going on in the industry?

Using Data Compiled in a SWOT Analysis

One of the most important parts of your SWOT analysis is using the data you compiled to
identify new strategies and goals for your business. For example, you can:
  Create a plan to build up your strengths even more
 List ways you can work on building up your weaknesses
 Set SMART goals for each of the opportunities you identified
 Devise a plan to use your strengths to decrease the threats you identified

Then, look for ways to combine data from different quadrants in even more ways:

 Explore how you can combine your strengths and opportunities to develop new
strategies
 Try combining strengths and threats to identify threats you can eliminate
 Look at your weaknesses and opportunities to create a list of areas ready for
improvement
 Make a list of areas to avoid that fall under weaknesses and threats

Once you understand how to compile your SWOT data and find ways to use it strategically,
the SWOT analysis will be a tool that you can use over and over in your business to explore
new opportunities and improve your decision-making process.

Alternative Ways to Raise Capital for Your Small

Business
One of the most difficult parts of starting a business for many entrepreneurs is figuring out
where to get the capital needed to get the business up and running. If you don't have the
money saved up, can't or don't want to take out a loan, are hesitant to ask family and friends
to chip in, and don't want to rack up credit card debt on start-up costs, how can you fund your
business?

Believe it or not, there are financing options other than loans and credit cards for those of us
working with a bootstrap budget. Explore these four options to decide which is the best way
to fund your business with very little start-up capital.

1. Go Minimalist

There are certain things you have to spend money on when you start a business, and there's
no negotiating it. Filing fees, fees for permits and licenses, and safety precautions, for
example. But there are plenty of start-up business expenses that are much more flexible.

Think about it. Do you need brand new state-of-the-art equipment, or can you get by with
your existing or other pre-owned equipment? Do you need to immediately launch a direct
mail campaign, or can you get started with marketing activities that require less of an
investment, such as social media?

Start by making a list of all of your potential start-up costs, then come up with less costly
alternatives. You may be surprised how many expenses you can cut or at least postpone until
you are making some sales. And don't ignore the power of technology; there are many ways
you can reduce start-up expenses in your business and do more with less by using technology.

2. Partner Up
If you have been approaching your new business as a solo endeavor, you might want to
explore expanding into a partnership. Teaming up with a colleague can not only double your
manpower, but it can also help you provide new and complementary products and services to
your existing target market. You may even find that it helps you break into a new niche.

Before entering into a partnership, you should make sure that you take time to research your
potential partner to ensure he or she is a good fit for your needs, has a positive reputation and
can commit to the partnership. And make sure you work with an attorney to create a contract
that outlines the terms and conditions of your partnership before getting started.

3. Apply for a Small Business Grant

Small business grants are available from a number of resources including state governments
and private groups. Although the grant application process can be a time-consuming one --
from finding a relevant grant opportunity, to conducting research into the opportunity and
specific requirements, to investing the time necessary to complete and submit your
application -- it will be well worth it if you win the award.

To get started, explore this list of small business grant programs by state.

4. Get Crowdfunded

Crowdfunding is when a business, organization or individual asks the general public for
donations and monetary support for a project. Unlike peer-to-peer lending, crowdfunding is a
form of microfinance that does not require repayment. Many times, the organization in
question will provide other perks, such as free products or discounts, as a thank you for
donations, but these terms can vary widely.

There are several different ways you can open your business or specific projects up for
crowdfunding; one is through the popular website, Kickstarter.

If these options don't work for your situation, you can explore small business loans, venture
capital investors and debt financing. The most important thing to remember is to do your
research so you don't end up losing time, and essentially money, by being unprepared.