Finding funding for your new business venture can be pretty challenging in the current climate. However, you shouldn’t let that put you off following your dreams and getting that startup on the ground. Especially, when there are now more funding sources than there ever were in the past…
The most obvious way to finance a new venture is via 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, make sure that you have a really tight business plan to wow them with. Don’t get upset if you’re turned down – there are plenty more fish in the financial sea.
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 convince them to come on board with a truly great idea, a good attitude and a willingness to work.
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 like 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 incentives. Such as giving them the finished product once you go into production, for example. 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 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. You won’t be able to separate your business finances and your own. If you’re confident you can make a success of things, and it’s only money holding you back, it is worth considering. As is the use of a credit card if you’re confident you can manage the repayments.
When it comes to funding, 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.
Got any ideas to fund your own business? Let me know below.
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