7 tips for how to finance a startup business
Have you been thinking about how to finance a startup business? Is your new business at the point where it needs some additional funding to get to the next level? Here are seven tips that will help you procure capital for your business once you've decided that you need more money to grow.
1. Try crowd funding
Have you looked into Kickstarter? These days you can use crowd funding to obtain capital for your business. You explain your concept to the world and you give people something in return for providing your business with money. The trick is to ensure that you spread the word properly and that your business stands out. There is a lot of competition, so a well-constructed and well-communicated plan is the key.
2. Ask your family and friends
Do you know anyone that would be willing to loan you some money for your new venture? This isn’t always the best option, but if you really believe in your business you can give this a try. The trick is to promise your family that you’ll pay them back with some sort of a guarantee. And, obviously, to honour that guarantee.
3. Try to finance the business on your own
You may have to keep things lean at your startup for the first little bit as the company grows. Do you have the savings to cover business expenses for now? You can do your best to keep expenses as low as you try to increase the revenue.
4. Apply for a government grant
Go through the government directory and look at the available grants. One of these may help you out. The government has all kinds of grants available to small business owners. You could be in luck if you apply for the right one. It never hurts to apply for free money.
5. Venture capital
With this option you’re going to have everything in order. Venture capital is usually for companies who are looking to raise a decent amount of cash. To have any hope of succeeding here you'll need a very thorough plan.
6. Bank loan
You can always go to the bank to state your case for why your business needs that money. Once again, you’re going to need to have your documents organized for this one. The bank will ask questions on everything to ensure that you can be trusted with this loan.
7. Go online and compare
You probably saw this one coming. You can look for a lender online by going directly to their websites, or you can use a site like Need a Loan, and be matched up with a lender to procure a business loan.
Good luck to financing your startup business. This process definitely won’t be easy at first, but if it were easy, everyone would do it. Enjoy the ride.
“Don't start a company unless it's an obsession and something you love. If you have an exit strategy, it's not an obsession.” -- Mark Cuban