A significant challenge for new business owners and entrepreneurs is finding the funds to launch and keep the business going strong. Start up costs, especially in the early stage of getting your business off the ground, can be tricky and overwhelming. The reality is that there are multiple paths you can take, and it may be somewhat of a trial-and-error process.
However, be glad to know there are services and options out there that can help you get the funding you need for your business. You not only want to get off to the right start, but you also want to be able to grow and expand your business. As a busy and dedicated business owner, you likely want to know the best ways to go about answering this question. Consider the following tips and ways to help you navigate the space and find future business success.
Determine Your Needs
A wise place to start when wondering if you can get funding for your business is to think about how much you’ll need. Determine the facts and figures in advance so you can lock in the amount that will push your business forward. There’s not a financial solution out there that falls into the one-size-fits-all framework. The future of your business depends upon your personal financial solution and the vision for your business. Conclude how much startup funding you’ll need and then begin to research and contemplate your options.
Be willing and prepared to take a variety of approaches until you find the best solution. Keep these funding ideas in mind as you develop your business plan and begin to demonstrate to others the value of investing in your company. Work hard to gain the respect you deserve to increase your odds of securing the capital you need to launch and grow. There may be products or services you require at different stages of your business development, so remain flexible and open-minded to which solutions may be most suitable.
Taking out Loans
Self-funding may not be a feasible option for you as you’re in the midst of starting a business. Luckily, there is a range of business finance options so that you can get on the right track and make your dreams a reality. A loan is a product or service that many business owners turn to when looking to fund a business. Whether you qualify or not, will depend on several factors such as your credit score and proof that you’re gaining traction and making money.
As your business grows and becomes more stable, you may need to turn to a bank loan or venture capital. It’ll allow for operating capital and long-term growth. You’ll need to provide years of financial information on both the business and the entrepreneur (yourself). If you’re experiencing hyper-growth later on, then venture capital funds may be the way to go.
One way to get funding for your business is to find angel investors. Angel investors usually give support to start-ups at the initial moments and when most investors are not prepared to back them. They’re typically wealthy individuals who are willing to invest in a business and an idea. It’s becoming more common for these individuals to form investment groups to reduce risk and pool research. You can either search for these investors online or contact your local community or chamber to find out who they are.
Another option is to reach out to friends and family to raise money. Be sure to communicate all the risks and the fact that they may not receive their money back if your business fails. Make sure there are no strings attached in that they are committing to investing in you, not your business. It can become complicated if promises are made and later broken. Be sure to tread lightly and ensure all parties are on the same page if you go with this option.
You may also want to consider crowdfunding as a way to fund your business. There are a lot of platforms to use, so do your homework before you choose one. It’s a way for web-based projects to get in touch with potential investors and share a business, idea, or project. You’ll be able to reach a lot of investors at once, which will raise your chances of being discovered.
Small Business Lenders
Numerous organisations are interested in lending to small businesses and have solutions that will be a good fit. Hop online to search for small business loans, and you’ll quickly see all the options you have at your disposal. Be sure to look into the interest rates, terms, and repayment plans before you sign any paperwork. Increase your chances of securing a small business loan by having and preparing a business plan, expense sheet, and financial projections for the following five years.
Small Business Grants
Many benefits come along with using small business grants. Be aware that the application process is typically complex and time-consuming. It’s always possible that your application will be unsuccessful, and you’ll need to look elsewhere. The upside with a business grant and why it’s attractive is that there’s no need to pay it back, no interest to pay, and you don’t have to lose any equity to an investor.
You may also want to consider negotiating an advance from a strategic partner or customer. Locate a complimentary business or engaged customer that is willing to give an advance on royalty payments to complete your development. Strategic partners can also benefit the business by aligning resources.
Here at Veritas Noble, we’re here to make getting funding for your business possible and painless. We’re a small team of business consultants and funding specialists working with businesses just like yours to secure government backed grants, asset based finance, and other commercial lending solutions. Our long list of products and services will help you to start a business and make sure it continues to grow and expand in the future. We’re ready and available to discuss your funding needs.