Even if you think it’s too small, your micro business or side hustle could be fund-worthy
Many small-scale entrepreneurs are unaware that it is possible to obtain funding for a micro business. Even, for example, an author whose sole focus is writing and publishing their own books can write a business funding request certain investors can’t resist. Brainstorming and getting all your ducks in a row makes a pipe dream a reality. But you can expect challenges along the way, and it will take time.
So, what’s your side hustle? It doesn’t matter whether you’re into books, print-on-demand, coaching, YouTube, or neighborhood roto-tilling. You are not the only person interested in the process, and I promise there are investment angels, financiers, banks, and individuals who have money and wouldn’t mind empowering you. You need to organize your ask and persuade others to get on board.
How to write a business funding request
A funding request is a formal request for financial support, often included as part of a business plan, and it can work for even the smallest business ideas. Here are the steps you can follow to write a strong funding request.
- Determine your funding needs: Before you start looking for funding, you need to determine how much money you need and what you plan to use it for. This will help you identify the type and source of funding best suited for your needs.
- Research potential funding sources: Identify potential sources that align with the needs of your endeavor. Think about banks, investors, grants, community organizations, or other funders.
- Create a budget and financial projections: Develop a budget that outlines the expected costs and revenues of the business, including projected cash flow and profits. You will need all of your financial records that relate to your business activities. Even if your process has been informal, assemble spreadsheets showing how you have used money in the business and reviewing your earnings.
- Write the request: Use a clear and concise writing style to explain the purpose of the funding, the amount of funding needed, and the exact uses. Include a detailed budget and financial projections to support your request and a compelling description of how you envision future growth and progress.
- Make a compelling case: Explain why the funding is necessary and how it will help the business achieve its goals. Use concrete examples and data to demonstrate the potential impact.
- Review and revise: Carefully review and revise the funding request to ensure it is clear, well-written, and persuasive. Consider seeking feedback from a financial advisor or mentor before submitting the request.
Tips for getting your ducks in a row
It’s essential to be thorough and specific in your funding request. A solid business plan and financial projections demonstrate your attention to detail. Market research gathers information about a target market, industry, or competitors. Research helps identify potential opportunities and challenges. Through online research, customer surveys, and interviews with industry experts, gather information about your competitors, including products, prices, marketing strategies, and customer reviews. Review the data and find patterns and trends. Consider strengths, weaknesses, and opportunities to improve on what they offer.
Assessing the competitive landscape can help you make informed decisions about your business and develop strategies to differentiate your products or services. That assessment is a deciding factor for lenders and funders. When you present info to prospects, make sure they understand how you are like other successful businesses, what you offer that is different, and what consumer needs you can fill. Make it clear that you have a level of expertise and can sustain a project long-term. It’s essential to be thorough and systematic in your analysis and regularly review and update your understanding of the competitive landscape.
As you create a final request, the findings from your market research help inform the next steps. Before convincing a money partner to pay out, you must show the competitive landscape and identify opportunities to differentiate your business. Identify companies offering similar products or services serving the target market and show a bit about their history and progress. Don’t give up if you get rejected by one funder, and don’t take rejection personally. Keep searching and applying until you find the right funding opportunity for your business.
Write a business funding request: Finding the money source
Types of funding include grants which don’t have to be paid back, loans that do, or silent partners which are case by case, and crowdfunding. Do a web search for funding for very small businesses.
Make it your habit to think about building relationships with potential funders since it can help increase your chances. Attend networking events, participate in online forums, and connect with people on social media who can help you find funding. Explore who, in your locality, is outspoken about empowering local entrepreneurs and look for opportunities to engage with them. Don’t overlook family and friends, often those investors can be the solution. However, the best advice is to formalize any loan or investment arrangements with written contracts and documentation. Partnerships based on detailed agreements always work out the best.
Remember, securing funding for a very small business can be challenging, but it’s not impossible. With the right data, a positive approach, and dedicated persistence, you can successfully acquire the funding you need to grow your business.
