One should not let money stop one from pursuing their goals. Funding is just an obstacle to begin. You can get money from many sources. If you have newly come to the business industry then the process might seem intimidating but I promise it gets better. But the first step is to get your startup off the group.
Looking to fund your new startup? Here’s what you should know
1. Create a blueprint of your Business plan
Before taking a step, one has to first decide and have a clear understanding of what his/her business model is all about. First of all, it’s difficult to raise funds from anyone until and unless a business plan is decided. Investors and loan-givers first calculate how potential your project is and based on that they invest or give loans. You have to first decide ‘What to do? Where to do? How to do?’ It should also involve market analysis especially the financial projections. And not forgetting the organizational structure of the company.
2. Visit online companies or local banks
Seek the help of banks that you go to for personal purposes or try out online funding companies like Fundera (https://www.fundera.com/) or Lendio (https://www.lendio.com/). Seeking help from a reputable company is more recommended. Depending on their criteria they qualify or eliminate the proposals. Getting demotivated by rejections will not be the solution.
3. Venture Capitalists
Securing funds from venture capitalists can also be another option. But, if you’re planning to opt for this route be prepared to sacrifice a portion of your business to the venture capitalists. Looking a the bright side of having venture capitalists, they may be able to provide the business with other necessary resources that can contribute to its success. But for that to happen the deals should be in favor of them.
4. Look for a strategic partner
Two heads are better than one in every field. Getting a strategic partner for your company might increase efficiency and accelerate the growth and development of the company. Partners also reduce your liability. While your potential strategic partner may be able to bring new ideas and solutions to the table, there might be chances that it would even give rise to conflicts and disagreements between the two.
5. Angel Investors
Angel Investors widely differ from Venture Capitalists (VCs). Angel investors can either take an equity share of your startup in exchange for their investment or their funding can also be exchanged for convertible debt. They are more genuinely interested in the company’s development and growth apart from their investment and returns. Angel investors provide funding to businesses when they are still in their early stages but on the flip side venture capitalists start investing and get involved later on.