One of the reasons why so many people fail to go after that business idea which they’ve had in mind, is down to the fact that they don’t have the money. This however should never be a reason as to why someone shouldn’t start a business, because there are just so many ways to go about securing the funding that you need to get your business off the ground. My buddy Paul works for Sertant Capital, a gourd who lend money to businesses to secure equipment, and he is often taken aback by how little people know about where they can go to get funding for a business venture which they have. If you are in this boat, unsure about the money you need for your business, here are some tips on getting that cash.
Bootstrap
Bootstrapping essentially means DIY fundraising and there is nothing wrong with trying this out and see how much money you can get-together. You could set up a crowdfunding page online to see if people will give you money for your business, speak to friends and family too, and even offer them a small percentage in exchange for investment, or a loan.
Bank Loan
A business loan from the bank is still the most common way in which new businesses fund their ventures and this is because the banks are able to offer very favorable terms on these loans. What people will also get when they take a business loan from a bank is that they will be given a personal manager who they can call on for help and support. We have to remember that the banks want their money back too, so it makes sense that they do all that they can to help the business succeed, whether it is an overdraft extension or a great mortgage rate on a property.
Angel Investment
Within high growth areas such as finance, tech and pharma, we are seeing a spike in wealthy investors who are looking to get a piece of the start up from the beginning, in exchange for a sizable chunk of the business. The idea for the investor is to pump cash into the startup at an early date, and then use their knowledge and experience to help the young business thrive. The exit pint for most of these investors will come when they are happy that their stake in the business has increased in value sufficiently for it to be sold on, securing a healthy profit for themselves, and leaving the business is great shape.
There are so many ways in which your business can get the funding it needs, the onus will be on you to understand how much you need and what you are going to spend it on. Before you try to raise funds, ensure that you have a watertight business plan and a plan for spending the investment, if you don’t have that then you will struggle to get the money you need.