Fundraising IDEAS for Starting a Business
Maximizing sponsorship revenue requires balancing quantity with quality.
When you’re opening a new business, funding dictates how much money you have to pay for a location, initiate marketing and promotional activities, hire staff and purchase supplies and equipment. Small-business owners who want to maximize their start-up funding come up with a variety of fundraising ideas to get their ventures started.
Host an Event
You can earn money for your start-up by hosting an event, such as a brunch, dinner or cocktail party. Invite friends, family members and business colleagues to attend the event. Charge individuals and groups to attend the dinner and allow businesses to act as sponsors. You can promote your event to the media with a press release and set up a website that provides the event details and sponsorship opportunities and explains that the purpose of the event is to raise money to open your business. Rather than keeping all of the profits from the event, you can also donate a portion of the event sales to a charity or cause that’s important to your attendees or the target market your business intends to serve.
Send Sales Letters
By writing a letter that gives potential donors an explanation of the type of business you’re trying to open and the types of products and services you plan to offer and expresses how the business will help your potential clients, you can raise funds for your new business. Send your letter to friends, family, colleagues and fellow small-business owners. Highlight the benefits of participating, which may include media mentions, recognition on your website or a financial stake in your company. Provide potential donors with your phone number and email address so they can contact you if they have additional questions about your business or donating funds. You should also provide potential donors with various ways to donate, which may be through check, money order, credit card or online through Google Checkout or PayPal.
Use Crowd-Source Funding
Companies such as KickStarter, 33needs, Profounder and Spot.us let entrepreneurs, including writers, explain their projects to individuals who may be willing to donate to help them fund their projects. Funding comes from strangers and can also come from friends and family members if you share your fundraising campaign details with them.
Small-business owners enter business plan competitions to help raise money to open and run their ventures. Amazon, Cleantech Open, Columbia University, Drexel Univeristy, Harvard University, Deloitte, Wharton, Walmart and University of Maryland offer business plan competitions. Typically, business plan competition programs require participants to submit copies of their executive summaries. From there, committees decide which entrepreneurs to bring in for live presentations of their business plans, then a panel selects a winner.