Finding funding for your new business venture can be pretty challenging especially given the current climate. However, you shouldn’t let that put you off following your dreams and getting that startup off the ground. Especially, when there are now more ways to finance your business than there ever were in the past.
There are a lot of aspects of a business, like the best HR software, bookkeeping, and even raw materials that need to be factored into the financing of a business as well as numerous other aspects so getting the financing done right is really important otherwise errors can occur. There are plenty of routes to entry when it comes to financing your business.
The most obvious way to finance a new venture is through a business loan from the bank. It’s as good a place as any to start. Unfortunately, a lot of newbie entrepreneurs will be turned down though. So if you go down this route, do make sure that you have a really watertight business plan to really wow them with. Please don’t get upset if you’re turned down – there are plenty more fish in the financial sea and we’re going to help you fish.
Angel investors are themselves entrepreneurs who have been there and done that. They know how tough it can be for budding young entrepreneurs to get their ideas off the ground. They are willing to help, not only with a swift cash injection but with the benefit of their experience too.
They’re like a bank, and a mentor rolled into one. Which makes them probably the best source of funding for startups out there. If you can meet with and wow them with your business plan and get them on board with a truly great idea, a good attitude and a willingness to work, a little like Dragon’s Den, then you’re going to go far.
If you’ve hit upon an idea that you really think will take off and you’re not shy about singing its praises on camera. Then, using a crowdfunding platform such as Kickstarter or Indiegogo to raise the money you need could be just what you’re looking for. If you go down this route, you’ll basically be asking the public to donate a sum of money to you. It can be as little as £1 and as much as they’re happy to part with. So that you can get your project off the ground.
In return, then, you will need to offer them some incentives for people to finance your business. For example, you could give them the finished product once you go into production. You’ll also need to come up with a really great pitch and be totally transparent, or you could struggle to get very far at all.
A Personal Loan
If you’re really struggling to get finance for your business, there is no reason why you could not apply for an easy personal loan to get things up and running. Obviously, if you do this you will be personally responsible for any bad debts should your venture fail (hopefully this won’t be the case at all). You won’t be able to separate your business finances and your own personal finances though. If you’re confident you can make a success of things, and it’s only money holding you back, it is probably worth considering. As is the use of a credit card if you’re confident you can manage the repayments.
When it comes to funding and trying to finance your business, there are so many options that you should not give up at the first hurdle. Keep applying until you secure the money you need and launch that amazing business venture that you know will change your life.
Have you got any other ideas for ways to fund your own start-up business? Let me know in the comments section below.
*Please note for all financial decisions when looking to finance your business you should consult a financial advisor who will be able to give you the most appropriate information for your situation.