Starting your own business is a thrilling experience. But it can be just as stressful. In spite of your brilliant idea and the drive, your plans are still on hold because of the lack of funding. Money makes the world go ‘round, and your business is no exception.
Savvy entrepreneurs know there are numerous ways to fund their start-up. And some of the best use the methods below to get the fuel for their businesses.
Try to Get a Grant.
Grants are a big opportunity to get some money to start your dream business. And, while this won’t offer you a big chunk of money, it will do the trick until you start to monetize your products or services.
State and national governments offer grants to new establishments. But there are some private enterprises with similar financing programs you can access. The main goal of these programs is to stimulate the economy and the job market. And the good news is, they can be a solid way to start your own adventure.
You can use these funds in different ways from investing in IT supplies and workforce to training and getting the right office for your business.
However, there is a small inconvenience you should be weary about. The high competitiveness of these grants. You have to meet all criteria to qualify for these, plus, you have to have a solid profile and potential.
Crowdfunding is a great way to find the necessary money to jumpstart your business. In the digital age, it has also become one of the preferred funding opportunities out there. But still, even if you’re not tech-savvy, you can still enjoy all the perks this funding method has to offer.
All you need is a good pitch, an appealing company profile and solid references for the potential your start-up holds.
Create a company profile on one of the notorious crowdfunding platforms out there. Crowdfunder.com is one of those, and it offers you the opportunity to interact with and sell your idea to cash-loaded investors.
The added benefit of this method is that it also offers you a strong marketing opportunity. It raises public interest in your start-up, and it sparks discussions in the online. That’s pretty nifty if you ask us.
For many a way of living, for others an enigma. But foreign currency trading is one of those smart funding methods you can use when searching for start-up financing opportunities. According to Medium.com, there are three fail-proof methods you can use to raise capital for your business.
You can even start Forex trading without any sort of investment capital. You can even consider offshore forex brokers when you start your journey. Consistent and conservative brokers can make anywhere between 15% and 25% profit with the right trading strategy. Besides, considering that it is entirely web-based, Forex trading is accessible to everybody. All you need is a steady internet connection and a good demo account. This will help you get a grasp of trading currencies. Although this isn’t the easiest investment method out there, it is incredibly rewarding and can help you raise the necessary money to jumpstart your business.
The only thing you should be wary about is the broker itself. You have to pick a reliable, regulated one. This will come with a series of advantages that will help you raise the money sooner than expected.
Getting an angel investor on board is a good way to find the money you need. But this will force you to offer them shares in your establishment.
All you have to do is identify wealthy individuals with a spotless record of helping businesses at the beginning of their journey to find the money they need. Before submitting your applications to these wealthy individuals, do your research. You will find a series of organizations and networks, even corporations who make a goal of getting on board of young businesses. Plus, you will get to learn a lot under their protection. In most of the cases, angel investors are more than just a source of funding, they are skilled and experienced mentors and experts in their fields.
Get the money you need by finding someone who shares your ideas and extraordinary vision. This is where venture capitalists enter the discussion.
But to make things clear, you have to put together a smooth business model that proves how scalable your business model is. These funding options are fruitful enough to become a good opportunity for finding a good funding idea.
The Good Ol’ Line of Credit.
Everybody has a line of credit open in their names. With that in mind, you can consider accessing one to finance the beginning of your entrepreneurial journey. We know, banks and loans are usually seen as the Antichrist of funding, but let’s face it: sometimes, when the options are limited, you can’t live without them.
However, before you jump the traditional funding wagon, make sure you have a solid credit score and history, a seamless business plan, bright profit prospects. When accessing a line of credit, you will keep all the equity within your company. But, you will have to pay back everything, seasoned with interest on top.
Or Seek Microfinance.
Last but not least, you can consider microfinance options. This is a good solution you can use when trying to get funded on a bad credit score. These options are out there to make financial inclusion a reality, but the amounts you can get are relatively modest. If you want to finance a tech start-up, for instance, the money will be limited, and you’ll be able to cover only a small chunk of your expenses.
These are some of the smartest funding opportunities out there. But the smartest decision you could make is the one that preserves your full equity over your company and doesn’t force you to pay back the amounts you borrow. While there aren’t so many options of this kind, a little research can go a long way.