Q: I have a business idea that I developed while at university. I’ve conducted the necessary market research to know that my business would fulfil a real need. In fact, I’m a million percent sure that it would be a huge success. So what do I do now? I have my idea, my research and my business plan. What I don’t have is any idea about what to do next or any money to invest. I’ve looked into business loans, but I’m overwhelmed by all the options. What would you do if you were in my situation? — Natalie English, United Kingdom
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Q: I have a business idea that I developed while at university. I’ve conducted the necessary market research to know that my business would fulfil a real need. In fact, I’m a million percent sure that it would be a huge success.
So what do I do now? I have my idea, my research and my business plan. What I don’t have is any idea about what to do next or any money to invest. I’ve looked into business loans, but I’m overwhelmed by all the options. What would you do if you were in my situation?
— Natalie English, United Kingdom
A: It sounds like you’re in a great position, Natalie. I wish I could be a million percent certain a new business of ours was going to be a success!
While I don’t know any specifics about your venture, I can recommend the path taken by a recent winner of a Virgin start-up competition. Some of the steps this young business took may be relevant for you.
Virgin Media Business recently held a series of pitching competitions at cities through the UK and Ireland as part of its “Voom Tour.” At each stop, representatives from local startups got the chance to pitch their ideas to a panel of investors, with the winning pitch receiving a cash prize.
A vegan-friendly start-up known as Project Jackfruit won the prize at the Birmingham tour stop. Project Jackfruit sells various pre-packaged, pre-sauced versions of the eponymous South Asian fruit, which can be eaten as a savoury alternative to meat. The young couple behind the venture, Abi Robertson and Jordan Grayson, not only delivered a great pitch, they also took all the necessary steps to ensure that their business was steadily progressing in the right direction.
Much like yourself, they found themselves with a winning idea but with little money to bring it to life. So instead of trying to raise money on the basis of their idea alone, Abi and Jordan first had their friends and family — including both vegans and meat eaters — taste-test their food. Through this process they were able to figure out which jackfruit flavours worked best and make any necessary tweaks to the cooking process.
With that initial testing phase complete, Abi and Jordan managed to scrape together enough money to take their product to a vegan food festival. This was the big moment of truth: The couple knew people liked their food, but would they actually buy it?
The answer was yes. Abi and Jordan sold hundreds of meals. Crucially, they also received more customer feedback, which allowed them to create additional jackfruit flavours. The profits they made from the festival enabled the couple to work on other aspects of their business, including branding and production.
By the time they took the stage at the Voom Tour, Abi and Jordan had already found their customers and completed the necessary market research, proving the viability of their business. This was a critical factor in convincing the judges that Project Jackfruit was worthy of further financial backing.
Just before their win at Voom, Abi and Jordan launched a crowdfunding campaign to take advantage of the momentum. And as they did with their victory in the pitching competition, the pair proved that it’s a lot easier to convince strangers to back your business when they can see that you’ve already had some success.
This logic can also be applied to the next stage in a start-up’s funding cycle: If big investors and venture capital firms see that you’ve already had a successful crowdfunding campaign, they’ll have the proof they need that your business can capture people’s imagination and they may be more likely to invest.
Getting an investor’s backing or convincing hundreds of people to donate to your crowdfunding campaign might sound daunting, but as Project Jackfruit shows, there are manageable steps you can take to get there. These days, entrepreneurs have access to many different financing routes. What’s more, many basic business necessities, such as a website, require little to no money to set up.
It would be foolish, however, to think that all of the barriers and opportunities you’ll face as a young entrepreneur revolve around finance — they don’t. One thing I would highly recommend is finding yourself a mentor, preferably one who has experience in your industry.
As with funding, finding a mentor might at first seem like an overwhelming task, but it’s not as hard as it sounds — all you have to do is ask someone. Having mentored plenty of entrepreneurs myself, I can assure you that it’s a two-way process. Both parties learn a lot. Any founders worth their salt will be happy to lend some time if they’re able; they stand to benefit from getting to know you and your idea. And if they really like it, they might invest!
Natalie, if you’re based in Scotland or England I encourage you to contact Virgin StartUp, our not-for-profit company serving entrepreneurs. Along with offering government-backed start-up loans at low interest rates, Virgin StartUp can also pair you with a suitable mentor.
If your business idea really is as good as you think it is, a lack of funding isn’t going to stand in your way — as long as you work hard and seek out a little guidance along the way.
Best of luck!
(Questions from readers will be answered in future columns. Please send them to Richard.Branson@nytimes.com. Please include your name, country, email address and the name of the website or publication where you read the column.)
© 2017 Richard Branson (Distributed by The New York Times Syndicate)
