So you’ve got a fantastic startup idea, and you’re ready to hit the road running… Well, nearly. The only thing you still need is money. The majority of startups struggle with finding sufficient funding to launch their business. Surprisingly enough, it’s not due to a lack of options. Most of their financial issues are related to a lack of information. Believe it or not, but after coming up with a brilliant business idea, startups owners can’t think of where to find the money for their company.
You Find A Generous Investor
You may not hear about companies that are happy to invest in startups, but it doesn’t mean that they don’t exist. In fact, generous investors are rather frequent, assuming you know where to look. Earlier this year, Rosemont Group Capital Partners were actively looking for startups and early digital stage companies. With an average investment of $100,000 to $1M, it’s easy to see how this kind of money can make all the difference in launching a business. As a rule of the thumb, investors have a market vision, and they will choose the help those who share their vision.
Sit Down With Your Banker
Commercial loans are nothing to afraid of. Unfortunately, most startup owners don’t always realize that business loans are loans against a business entity and are not relatable to their mortgage – which is a loan made against your personal asset. A commercial loan evaluates the potential of the business and will be set against the forecasted assets. If the business goes bankrupt, you don’t need to pay from your savings.
Find Several Investors
You can push your business ideas into the public light to gather the support of people who believe in you. This principle – crowdfunding – requires you to present your business idea in an intuitive and engaging manner, as you are dealing with members of the public. Additionally, you need to offer a reward for their funding, from a freebie to parts in your company. Successful crowdfunding campaigns combine entertaining content, that explains clearly why your business idea is important and how it will change people’s lives, with an achievable amount.
Use Your Personal Savings
If you’ve been lucky enough to inherit a large sum of money from your great Aunt Amy, you might consider investing it into your startup business. However, you need to be careful with this. Using your saving means that you reduce your runway period for preparation and organized launch. Additionally, you may not notice issues with the business concept as you don’t need to do the work and convince someone else that your idea is great.
Ask For A Grant
You can also find specialist governmental grants to help you start a business. Grants are investments that you don’t need to repay. The only problem: You need to prepare for a long and thorough application process!
You can find financing for your startup in a variety of places: Investors, loans, crowdfunding, savings and official grants. You can and should combine sources to gather sufficient funding to start on a healthy base. But more importantly, you need to start with a business plan and a forecast of your budget. Only then can you know how much you really need.