Aspiring entrepreneurs deal with basic lack of money to kick-start their business. Many dreams and ideas are shattered due to lack of funding. Entrepreneurs fail to explore and discover different ways they can get funding for their business. The survival of business solely rests on capital. Studies show that about 85% of businesses fail during the initial time because of less or no startup investment.
Hence, this is very important for people to know the different ways they can raise funding for their business. These are some of the tried and tested methods that successful entrepreneurs across the globe suggest going ahead with these plans.
Let us know some of the methods to get your startup funded.
Save and Bootstrap
When you are planning to build a business, start saving each penny you can. Your business is bigger than all your trivial luxuries. Save your money and you can fund your own business. Even if it is a part that you have invested, you can earn profits in future. There will be no pressure to live up to the expectations of your investors. Think about your business and start saving today for your startup investment.
The basic concept of crowd-funding is numerous people funding a new financial business via the internet or social media. Crowd-funding sites are all over the internet. All you have to do your research and put up your plan on it.
Investors choose to invest adhering to the rules of the site and you can raise as much as money you need for your business. Entrepreneurs have raised unimaginable amounts of money to fulfil their dream business.
Family And Friends
If you have close/loved one who has the resources to fund your business, then pitch it. Friends or family want you to succeed in life and will not hesitate in helping you. This will save your time and energy of the loops of funding. The family will always be interested to invest in their kid’s startup.
You can make a fair deal by offering some shares in your company. This will give them the security of not losing their money. Furthermore, this will also set you as a professional entrepreneur. Professionalism will always go a long way for your business.
Incubators on startup accelerators offer startups workspace, advises, training and prospective funding. These incubator companies offer to fund and become stakeholders of your upcoming business. Incubators believe in startup investment and nurture them into flourishing businesses under their guidance.
A fair chance of networking and building your business in the right direction is possible with startup incubators or accelerators. These companies are usually sponsored by universities, organizations or even individual businessmen.
There are many individuals who have surplus money and are keen on investing in new and innovative businesses. If you can find them and convince them, then there is no looking back. They can offer you great guidance and make sure your business keeps growing. This is a great option for startup investment.
You can also enjoy the perks of their already established networks. Many companies have excelled with angel investment like Google and Alibaba.
Though it is quite difficult for a new startup to get a loan from the bank unless there are collateral assets to guarantee the loan. But many banks offer small business loan programs that can favour your startup investment.
This is a difficult choice but it is not impossible. Loans create pressure upon entrepreneurs and many stay away from this choice. The business has to pay monthly EMI’s and if they fail to do so, there can be strict actions.
You can get venture capital funding for your business. Venture investors fund business in millions or billions. For this to happen, your business should surpass the startup phase and start making revenues.
Venture capital deals are very difficult to crack and sometimes take months and years to crack a venture investment deal. The business should also have a good structure exit plan for the investors to be keen on your business.
Startup investment is on the minds of venture capitalists if the ideas and plans are exceptionally great.
Building a business singlehandedly is a time-consuming risk. Hence, one can opt for partnership rather than trying to establish a market of their own. You can approach an already established brand of the market and crack a fair deal with them. They will do all the marketing and create revenue for you. This is an idea you should really look into.
Consult a Lawyer
All the business ideas differ from each other. You can consult a business lawyer that can help you decide the best option for your startup investment. The lawyer’s experience in the past years will help you with the best advice to make your business a success.
These were some options to ponder and choose from to get your startup the necessary funding. Hope your business gets a kick-start and blooms and archives all the success in future.
All the best!