A person holding a lightbulb in their hand, symbolizing an invention they have no money for.
Need Money, Personal Finance

Need Money For An Invention

Is there anything worse than being broke? How about being broke with an idea for a killer invention? If that sounds like you, we may be able to help. Let’s look at some ways that you can get a little seed money to get that invention of yours off of the ground.

There may be nothing worse than having to sit on an idea because you lack the money to develop it. If you are in this situation, you may have options. Options that can help you get your invention to the market. Have a look.

Get Online Funding

The simplest way to get your invention off the ground, if you have no money, is to get an installment loan. This is something that may be an option even if you have bad credit. A personal loan can be very useful in giving you the capital that you need to make the investment in your idea and we may be able to help.

To get started, you need to fill out a simple quote form. Click here to go to our online loan form where you can enter your information and get an offer for the money you need. You can request up to $50,000, which is plenty of money to get most ideas off of the ground. The loan form will ask for some very basic information about yourself and how you make money. The details of your invention are not needed however. This would be a personal loan, so it would not be tied to your invention in any way. This is a good thing and frees you to promote your business however you like.

Once you complete your form, submit it to the online lending group and get an answer. If approved for a loan, one lender will then make you an offer and you will be redirected to their website to review the terms. If you like the offer, accept it online and you can have the money you need for your invention as soon as the next business day.

After your lender deposits money into your account, you can instantly begin using the money as needed to advance your idea.

This is what makes an online loan such a great option. The fast money will allow you to start thinking about developing your idea right this second.

Find Investors

If you do not want to borrow the money, another option is to find investors to fuel your invention or project. You have several options as far as investors go.

Friends & Family

The easiest route to go when looking for investors would be to look to your friends and family. This route is preferred for a number of reasons.

First and foremost is the fact that this group of people will be much easier to convince to give you money than traditional investors. They already know you, your work ethic and your ideas. Hopefully, this is enough to get them to lay some money down so that you can advance your invention.

Second, and just as important, is the fact that your family and friends would not be as demanding as investors. An investment group is going to want to see some real profit potential if they are going to invest. This means that they will want a much larger piece of the pie than your family might be looking for. It also means that you would have to keep them in the loop during he entire development process, adding to your workload.

Crowd Funding

If you can not raise the money with your friends and family, a crowd funding group is your next best option.

Groups like Kickstarter and even Quirky can help you get an idea or product off of the ground with minimal demands on future revenue and invention ownership. You simply need to have an idea and come up with an interesting way to introduce it to your audience. If the idea is strong enough, you could end up with thousands of individual investors willing to invest a little money in your idea.

The good thing about crowd sourcing is that the individual investors will have minimal input on your project. This will allow you to develop your idea the way you see fit without excess scrutiny. The downside however is that it takes time to crowdsource. You are not going to get money tomorrow, it can take months. In addition, not every project will even get off the ground, many will fizzle out with crowdsourcing.

Investor Groups

Your last major option when it comes to finding investors is to seek one investor or investor group. This will be the hardest option and will likely require quite a bit of development on your end.

An investor group will typically want you to have more than just a simple idea. You will need to come up with a prototype and a strong business plan. Most investor groups are not interested in getting in on the ground floor. They generally want to take a product or idea that has seen some success and take it to the next level.

The benefit of going with an investment group to fund your idea is that you will usually be able to get more money. These are serious investors with serious bank accounts. Additionally, you can lean on your investors for a bit more guidance as they will have more experience and connections in the business world.

All of this comes with a price however. A serious investor is going to want a serious stake of the profits. This will cut into your potential income and limit the amount of control that you have over your idea.

Save Money While You Refine Your Idea

Last but not least, if you have an invention but no money, why not save for the funds that you need. Unless you have an idea that will only work in the short term and you need money overnight, saving has a number of advantages.

First is the fact that you will not have to borrow. Not being burdened by debt can be a huge asset when you are first starting a company. Instead of needing to take profits and pay back a loan, you can invest them back into your company.

Additionally, the time that it takes to save your money will give you time to fully develop your idea. If you have a new invention, chances are good that you have not worked out every detail. Taking the time to save the money that you need will allow you to iron out all of the wrinkles. This will eventually allow you to launch your idea easier and waste less money on wrong turns.

In Conclusion

Having an idea for a new product or service can be exhilarating, but you need to use caution. There are a lot of ways for you to fund an idea, but many of these ideas involve taking on debt.

Before you rush out and take on debt or borrow money that you can not afford to pay back, make sure to thoroughly vet your idea. Here are some things to think about.

  • Are there similar products on the market?
    You have a great idea, but are you sure that it is original? Be sure to thoroughly research the competition before putting down any money to pursue your idea. If there are other products or similar ideas on the market, how will you make your invention different?
  • What do people think of your idea?
    Yes, you want to be discreet about your invention, but you need some input to make sure that the idea will be successful. Ask a few trusted friends and/or relatives what they think about your idea, because we are not always truthful with ourselves.
  • How can I explain my idea?
    You will need to be able to talk to potential investors and they will nee to know exactly what your idea is. Make sure that you can explain your invention in a way that captivates and intrigues your audience.