Every aspiring entrepreneur needs a few things to start: strong enthusiasm, an excellent idea, and capital. If you’ve already taken care of the first two ingredients, we are here to help you with the last one! Money to start-up business may require one or several methods to implement, and you have to determine it before you will begin raising money.
The early phase of your new business is all about getting the initial capital. If your idea has the potential to change something in the lives of others, then you shouldn’t have bigger problems to raise the money. You only have to know what are the most common sources and where to find them.
Getting start-up funding requires you to create a business plan that will show the potential venture capital firms the value of your idea and the possible income it can bring. You need to make it to attract the initial investors, and you will see that others will follow.
Here’s how to raise money for your business:
The most common source of money in the first stages of your business functioning is your own pocket. If you don’t have needed savings, try to think if you can sell some of your possessions (real estate, vehicles, or stocks). Even if you have to take a loan, the lending institutions often expect personal financial commitment from entrepreneurs.
To start a business can be a risky game, but if you already have some savings and just want to multiply it, you can risk even more and try your luck in gambling. Try to see here for exciting opportunities to get more money to implement your plans. Only make sure you will allocate an amount that you are able to lose without pain in the event of failure.
Business Bank Loan
Loans are perfect for funding your business as it is the quickest way to get cash. But if you want to be the business owner that is financing the company with a credit card, you should be aware of some circumstances that may increase your chance of getting a loan. Here, we can mention:
- A good credit rating
- Big interest rates
- Solid business plan
Also, when using a credit card, you need to be careful – even one missed payment could hurt your credit ratings. What is great about business bank loans? The monthly payments are relatively low, so if you have an outstanding credit history, pay the loan installments regularly, such a solution would be a good idea to increase your budget quickly.
Nowadays, we have many crowdfunding sites that help small businesses in funding. You could take money from friends and family, but just imagine strangers wanting to contribute to your project because they loved your business idea!
This kind of financial support is a boost of energy for many business owners, which allows them to work even more intensively in the initial stages of the company’s formation. Crowdfunding is great because it doesn’t require you to give away your intellectual property rights to the “investors.”
The most popular platforms you can use for crowdfunding are Indiegogo and Kickstarter. If a credit line isn’t for you – try to promote your idea and search for your investors there.
Accelerators offer great possibilities to develop your small business, both strategically and financially. It starts with the application process, and in order to get into the program, you will have to present a unique idea of great value. Programs are very selective, but if you’re lucky, you will get access to the network that will almost guarantee your success.
There are many requirements you should follow to enter the accelerator, but the amount of knowledge you can grasp from experienced business owners and mentors is going to be the greatest value of it. Of course, you may also expect the accelerator to fund your start-up, so you won’t have to worry about your credit score anymore.
Accelerators’ most prominent advantage is providing feedback at the early stages of business development, so if you want to get the most out of this solution, listen carefully and build your own experience based on experts’ advice.
The first stage of establishing a new business is the hardest, so be prepared for hours spent thinking about how to discover the best money sources. And there are plenty of them! You can use your personal savings, ask friends and family, find venture capitalists, or “investors” on crowdfunding websites.
Remember that you can get your small business the best funding sources only if you think in the long run. Try to determine what suits your company the best and spend some time considering the pros and cons.