Whether you’re looking at it from the point of view of someone who is pushing an unconventional start-up or if you’re just curious as to how someone managed to get funding for what is considered to be an unconventional business, it does indeed make for some interesting reading. It would otherwise take years if not decades to get a “regular job” in the corporate world and try to save up enough money to channel into something like a technology incubator business you probably wanted to start, so you’d definitely need to try and get some funding from somewhere.
I specifically used the example of a technology incubator to drive a point home. I mean by no means is a tech incubator an unusual business venture in this day and age, but it once was and I used this particular example to demonstrate how things change over time. By the time you’ve worked your fingers to the bone in the corporate world and you’ve saved up enough money to invest into your tech incubator business as capital, the idea is old and the market has probably left you behind.
So it’s important to be able to get access to funding, most likely in the form of some kind of loan, while the idea is still “unconventional” in its nature. That’s where the challenge lies however, but it’s not impossible, as is attested to by the many innovative businesses which are flourishing today as a result of having secured some start-up capital.
It’s all about the business model
So I’m going to share with you a secret of the business lending industry which will probably help you better your chances of getting approved for a loan every time you need or want one. It’s all about the business model and pretty much has nothing to do with the idea itself. So you won’t be getting approved on the basis of coming up with a revolutionary idea, but rather based on the likelihood of your business succeeding and subsequently generating the profits which are going to allow you to effectively pay back the lender, with interest of course.
Identifying and demonstrating key business elements
Sure, your business idea would naturally be an innovative one since we are indeed discussing funding for unconventional business models, but the fact that it’s all about the business model itself leads us to the core of what the indicators to possible success are. You just have to get your story straight with regards to how you’re going to generate your income and how much profit you’re going to make, which is why there’d be a need for something like a business plan – albeit one which is dynamic and leaves room for expansion and even for a complete change, should the need arise.
Applying discretion when choosing prospective creditors and funders
With this discussed thinking in mind, as the founder of an unconventional business you would then probably head on over to this website in order to try and find the right kind of potential funder, investor or lender to provide the required capital to get your start-up off the ground. It doesn’t mean you’d be going for a conventional business loan if you were looking to start a tech start-up for example.