Congrats on taking the first steps toward entrepreneurship! Like others have indicated, an idea is just the beginning of your journey. Once you have fully vetted the feasibility of your idea and you have formed a company (more on that), you will be in a good position to raise money through a subscription agreement.
A subscription agreement is a customizable legal document that allows you to raise money by selling shares of your company. This is a good way to raise money if you don’t want to take out a loan and if you are not big enough to attract funding from venture capital firms. Most subscription agreements will contain the names of the parties to the agreement, the role and responsibilities of each party, the number of shares involved, and the price per share. (More on the advantages of a subscription agreement.) Although form subscription agreements can be found on the internet, I recommend that you have a legal professional draft the agreement for you. Some other options when it comes to funding includes:
- Bootstrap it yourself. Self-funding from your savings is always preferred as you don’t have to give up any of your ownership.
- Ask your “friends and family.” This can be a risky source as business relations can affect your personal relationships, yet they can be some of your biggest supporters and open to attractive terms for repayment.
- Find a major customer to front the beginning the costs
- Use a prime like . Make sure you read the fine print in your agreement with the various sites.
- Loans through the . A lot of different options here, and historically a solid option for small businesses.
- Find an incubator. My company participated in and I highly recommend applying!
- Credit cards / mortgage your house. Eeeeek
- Peer-to-peer lending on a site like . Like crowdfunding sites, read the fine terms.
Feel free to check out, a legal platform for the modern age. Our site has impressive, fully-vetted lawyers who have specific experience advising startups on fundraising. The lawyers on our site can help you from the beginning of your lifespan (incorporation) all the way to your exit. We offer a free consultation and no obligation price quotes! Good luck with launching your business!