Let’s Talk About Funding

In today's entrepreneurial landscape, the pressure to borrow money to launch or expand a business is ever-present. Many voices advocate for traditional financing methods, and at MA, we believe that relying on loans can lead to precarious situations. We’re here to guide you through healthier funding alternatives, allowing you to grow your business without compromising your financial stability. While borrowing might seem like a quick fix, it can quickly spiral out of control. One bad month or unexpected economic shift could jeopardize everything you’ve built. Instead of playing this risky game, consider strategies that allow you to maintain control over your business and finances. Three practical funding options are: crowdfunding, equity funding, and personal funding.

Crowdfunding — Crowdfunding is often overlooked but can be a powerful way to secure funding for specific projects within your business. Focus on donation-based crowdfunding, where individuals or organizations that resonate with your vision contribute. Platforms like GoFundMe and Kickstarter can help you connect with potential supporters that will make financial contributions. Every little bit counts. Don’t just take our word for it though, take a look at this organization and all they have to offer, all while being crowdfunded solely: Study the Story of the Bible With Free Tools | BibleProject™

Equity Funding — Equity funding differs from traditional borrowing because it involves giving up a portion of ownership in exchange for capital investment. This can be through crowd or private equity. With equity crowdfunding, you attract investors who expect a share of future profits, making them invested in your success. Private equity firms can also offer substantial resources beyond just financial support, including mentorship and valuable industry connections. In order to attract the right type of investor, a few things should be in order. Identifying market potential, a detailed business plan, examples of healthy operations, and an exit plan. If you are a business wanting a financial partner to start or scale in your business, sharing why it’s scalable and being able to back it up with data is attractive. It eases the potential investor, showing them you’re serious about a potential partnership. Having an effective business plan is the best way to communicate with potential investors and funders about your company’s goals, current operational structures, and capacity for return on investments. Your business plan should answer any initial questions investors may have and outline the next steps. Giving examples of your operations is important because it highlights characteristics that many investors look for: accountability, organization, reliability, and strong management. People often say I’m here for a good time, not a long time while investors think I’m here for a healthy time and if that deems not to be true, there needs to be a clear and quick path to exit. Without this included and shared transparently, it can make for a quick conversation. 

Personal Funding — Tapping into your own resources can be one of the healthiest ways to fund your business. This includes using personal savings, applying for grants, or cash flowing your existing income streams. Assess your financial situation realistically, especially if you're in a product-based business with higher overhead costs. Grants can be a fruitful avenue, as many are designed specifically for startups. Just remember to pay attention to the application details—timelines, guidelines, and deadlines matter. Start here: MA has collected thousands of dollars for its clients through grants so we can definitely become an asset for you. 

The path to starting and growing a business doesn't have to lead you into debt. By exploring crowdfunding, equity funding, and personal resources, you can find healthier and more sustainable ways to finance your venture. If you’re interested in learning more about these options or need guidance in your entrepreneurial journey, reach out to us at MA. We're here to help you thrive without the weight of financial burdens.

How Do I Start a Business?

“If you plan it with a pencil, then you can weld it with steel.” - T.D. Jakes

Here at MA, we focus heavily on strategy, and one reason is because it includes vision, which is crucial in the planning phase of starting or expanding a business. It is the foundation of any successful business. As T.D. Jakes eloquently said in his book S.O.A.R. The essence of this quote lies in the idea that careful planning leads to strong execution—first sketching out flexible ideas (like with a pencil) and then solidifying them (like welding with steel).

How to start? Grab a pencil and paper (or your laptop) and start brainstorming. List your desires, ideas, goals, and passions. What problems do you aim to solve? How does your business provide solutions? Who are you serving? This step is crucial—don’t rush it! Data shows that failing to plan is one of the biggest reasons businesses collapse within the first few years. This won’t be your business.

The next thing you need to do is perform a deep dive into three categorical areas: problem, solution and audience. This is one of the reasons MA exists—to partner with others through strategy consulting. Further research may be needed in areas such as market and competitor analysis, funding opportunities, and how to organize and create a healthy, clear business plan. Without these elements complete, you can easily go in the wrong direction, costing you money, effort, and time. This process is not only used to start a business, yet for expansion and intentional growth as well. 

Lastly, implementation. You’ve put in the necessary steps to move forward, and that should give you clarity and confidence in your chosen industry. You might also find that your original idea isn’t as viable as you thought—and that’s okay! Design a timeline with key milestones to track short-term wins that build towards long-term success. Did you know that 20% of new businesses fail in the first year, and 50% within five? This only underscores the importance of solid planning and strategy to increase your chances of success. Another critical factor is finances. You can read another one of our posts to see how we go about helping businesses with funding.

Why Should I Start a Business?

If you have ever competed in any major competition, you have likely thought right before you started, “Why did I sign up for this, and what am I doing with my life?” Time, effort, sacrifices of many kinds, and perhaps even money are all resources invested to start and finish an event. The commitment was there, and rightfully so. Should that not be the same mindset regarding a business? When you think about why to start a business, is the "why" bigger than yourself? If not, it doesn’t mean the business model will fail; we’re just here to challenge you to think bigger than yourself. Businesses should be solutions to problems. They should be assets to the community. Now, we understand that you still want to generate revenue, since it is a business, we get that! Before that though, we want you to build on the right foundation.

One major benefit of starting a business while still having a W-2 job is that the pressure of immediate income can be alleviated. Would it be convenient to start earning right away? Of course. Yet one thing we have witnessed is that some people decide not to start a business due to the false notion that if they don’t make money right away, the product or service is of no value. That may be a misconception. Why start? Because it will give you an opportunity to test a proof of concept, quality, and/or marketability. Some would advise treating “the thing” as a hobby and not worrying about making it a legal entity until you start seeing real money. What is “real money” anyway? The problem here is that if you see it as a hobby and treat it as such, then what is it? Need we say more? Position yourself correctly the first time. Don’t believe the lie that because you are only giving it a certain amount of time in the beginning justifies not taking the necessary steps to legalize it. It’s much safer to be prepared for a legitimate business opportunity before it arises. Maintain a posture of expectancy because you know you are worth it when the opportunity arises. In the meantime, you can test the concept, gain feedback from others, hone in on your business’s target market, or test out a few if you so choose. You have time on your side and a consistent income, so there’s no need to rush the process.

Lastly, we understand that others will be in different seasons of life, and starting a business will not look the same for a twenty-five-year-old versus a forty-five-year-old. If you are established with responsibilities such as a family, career, or commitments to the community and/or your church, it is not feasible—dare we say wise—to neglect the most important priorities for something that is not guaranteed to succeed. Even then, at what cost? Why start? Because you can honor your family, career, and prior obligations while still pursuing your passion(s) in business. You just need to be wise about it. Want to know how? Read the next post.