In theory, all you need to do to finance your new business is write a kicking business plan and have a good internet connection. Luckily, that’s all theory. You need work especially hard to get your business up and running, and if you want to raise cash for a start-up company, you need to be prepared for that work. You’ll need to gather your contacts, hone your business plan and work on your persuasiveness – you’re going to need it when it comes to financing your new business.
There is an increase in those who are starting their own companies, which means that there are more and more people out there bidding for cash, leaving you to scramble for the leftovers. This also means that you have to get creative with the way that you choose to fund your new company. Below, you can find some of the best ideas around to getting that much-needed new business finance.
Contacts. You have friends, family and contacts right there in your address book. Start-up companies often have their beginnings by asking their friends and family to invest in them. This will mean coming up with contracts that suit those who want to invest, and it also could mean less interest for you to end up paying. You could also look into contacts such as those Mutual of Omaha claims that you’ve had going for a while. If you’re due a pay out in any way, this could help fund your new business.
Business Angels. Not quite Dragon’s Den, but angel investors will often back a business in its early stages, in exchange for a stake in the business, of course. When you do well, your angel investor does well, and it bodes well for the future of your business if you get an investor quite early. They don’t just give cash either, with many business angels offering words of wisdom or advice for your new company to rely on.
Crowdfunding. You’ve seen them on Facebook, but crowdfunding sites are becoming more and more popular as time goes on. They’re platforms whereby individuals can talk about what they’re doing and what they hope to achieve, and people can choose whether to put some money up as a donation. It’s a great way for businesses to earn some cash for their start-up, especially as you don’t owe it back to anyone. Not only can you get the cash you need, you can also use it as a way to market the company and get your name out there for free.
Bootstrapping. Not many have heard this term, but it’s the one used to define business owners who front the cash out of their own savings or credit cards, paying for everything that their business does bit by bit. You can choose to bootstrap your own business if you so wish, which will make your company success all about you from the finances to the marketing.
Whichever way that you choose to fund your company, make sure you research each option thoroughly before signing on the dotted line.