If you’ve managed to come up with a pretty neat tech-based idea, there’s a good chance that you’ll be able to gain a lot of attention from angel investors or even venture capitalists. However, with more and more companies going that route, finding a suitable investor can become even harder as time goes. Have you ever thought about how you can get yourself financially organised and get your business up and running? Well, look no further because we’ve got you covered!
1 – Friends And Family
While you might be skeptical about borrowing from those closest to you, it’s never a bad idea to start in this way. If you didn’t already know it can be significantly harder to convince seasoned investors or even the bank to provide the money that you require for your idea to flourish. Hence, it becomes much easier to convince your loved ones as they support those dreams of yours.
In essence, they will be more eager to fund your startup. If for some reason you do go this route, it is also a great idea to get some proper legal advice before taking any money from them. It should be noted that borrowing money is also a fast way to lose friends and damage family relationships. So, be sure that you’re willing to take the risk.
2 – Small Business Loans
Certain banks are more inclined to provide the startup capital required by small businesses. However, they’re very cautious when it comes to giving money to smaller entities and it becomes even difficult to qualify. As such, there are other companies that you can acquire the money that you need and they might even be the best option.
The main downside to this approach is that they are very persuasive and predatory by nature. So, be cautious of these companies before you rush into any deals.
3 – Trade Property Or Services
If you’re interested in having a website done, why not ask someone you know that does freelancing? This allows you to offer marketing advice later on in his journey. In just about every city around the globe, tons of startups can all work together to make business goals come true.
The only problem with this is that you just found one of the most awful ways to live. Not everyone will be willing to do this and you shouldn’t take too much offense if anyone refuses.
4 – Bootstrapping
Bootstrapping is, even more, coming than you’d expect. This is when owners take their business up and running using their own capital. This money can be anything from savings, mortgages, credit cards, and anything else that makes you money. If you acquire a free credit report card, you’ll be able to see where you stand on this idea and you’ll be able to determine the interest rates on loans that can eventually provide you with enough credit.
The only issue with this one is that if things go wrong, you’d now be in a whole lot of debt. So, choose wisely.
5 – Accelerator Or Incubator
Accelerators and incubators are now more common than they used to be. They can usually be found near universities and colleges with business programs. They provide you with development and a workspace to get you up and running. This allows you to get the best start while you network and partner with some of the best in the business.
The only downside is that these entities only focus on tech businesses. So, there’s a chance that you might struggle to find one if your business is tech centered.
6 – Crowdfunding
Crowdfunding is a great idea to start a business. Several websites on the internet provide a platform where you can receive funding based on the potential of your idea from investors and the reach that they have. The only issue here is that there are already tons of companies on these platforms.
To win with this one, you’ll need to actively be the talk of the town or rather the internet. But, be prepared to deal with a ton of loud noise from everyone before you receive the funding that you need. To launch your crowdfunding campaign successfully, you should opt for a professional Indiegogo marketing agency.
7 – Business Grants For Small Businesses
Grants can be received from the Small Business Association and other entities that offer grants to startups. However, some are more inclined to fund projects that are run by veterans, minorities, and women. So, if your company fits into any of these, it’s a good idea to speak to the Chamber of Commerce, or the SBA chapter in your area to see if there are any active grants that you can apply for. The major downside to this is that you may have to pay them back or even agree to certain conditions. While not all are bombarded by stipulations, it’s still a great idea to know exactly what you’re getting yourself into!