Having a large multi-million dollar idea for a startup or a business is a fantastic thing – but what next? You’ll need things that include a tech team, a website, a space for your office, and at least enough cash coming in every month to pay for everything.
This means that what you really need is money. It doesn’t matter if it’s a posh café or the next great app, most entrepreneurs and businesses need at least a bit of funding in order to get off the ground. There are a few places to find the funds you require. Here’s a quick look at a few of them.
Crowdfunding is gaining in popularity. What happens is you sign up at a crowdfunding investment site, and it provides you with the opportunity to raise money from small, individual supporters all over the web. You set up your campaign and a target for the amount of money you need to raise. You’ll also want to consider setting benefits for those donors who pledge certain amounts of money. Once you’ve done that, you raise the money you need over a set period of time.
If you’ve already begun to gain traction and are making some money, and you think a loan would provide even more assistance, you might be able to get qualified for a more traditional bank loan. A few banks have even recently announced they’re increasing their commitment to entrepreneurs and small businesses. While each institution and situation is different, this can often be a clever idea if you’re in need of funding up to $500,000.
A lot of entrepreneurs use this technique. Bootstrapping essentially means that you finance your business by scraping together all of your personal funds. This can include things like home equity lines of credit, credit cards, and savings. In many ways, this is a great idea, especially when you can continue doing this until the business makes a profit. It means that you won’t need to worry about expensive loan payments and interest that can bog you down.
Family and Friends
Asking people for money can be a rather daunting thing to do. However, tapping those friends and family closest to you can be a good thing to do if you don’t want to go to external funding sources. Also, what can it hurt to ask? Aunt Essie might not be in the position to finance all of your new business, but she may just be able to loan you a few thousand dollars to help you get off the ground.
If what you’re starting is a smaller company, instead of a tech startup that could be the next Instagram, you might want to take some time to check out the small business development center in your area. Many colleges have them, and the SBA (Small Business Administration) has over 60 spread across the country. These centers can assist you with connecting with groups of entrepreneurs to network with, as well as angel investors who are looking to fund businesses. They’re also good at assisting you with figuring out which types of loans or funding you may qualify for and applying for them.
Locating funding can be one of the most difficult aspects of getting a business started, but it can also be one of the most rewarding. Once you’ve gotten your crowdfunding, loan, or saved enough, you can begin your dream job! Even when it can be a long road to that success, establishing allies along the way, be they venture capitalists, investors, or your own friends and family, to assist with keeping your business afloat can make more of a difference than you might imagine.