As a new business owner, you may find it difficult to gain access to loans and business cash advances whilst trying to kickstart your business. Luckily, that hasn’t stopped many daring and determined entrepreneurs from finding funds elsewhere.
Even in an economic crisis, there are still ripe opportunities for people to establish a brand that changes the face of the world. If you’re new in business and are wondering how to really take off, here are a few ways you can access financing to kickstart your small business and make your presence felt.
Apply for Kickstarter Funding
The Kickstarter funding system was founded to be a significant player in the financing of small new businesses. Simply put, Kickstarter is a U.S based funding platform, created to match people with a good idea, to people in a position to fund that good idea. Creators can disseminate information on their particular creative project and pitch for the funds to make their idea a reality. The funds are entirely driven by crowdfunding, meaning that the general public use their own money to back the projects they see potential in. Kickstarter has supported more than 257,000 creative projects since its inception and has seen more than $4 billion pledged from more than 15.5 million backers to fund projects as diverse as food-related projects to stage shows, video games and films.
If you have a good, solid business plan for a startup and are stuck when it comes to getting business finance, you can take a bank loan. There are different types of loans including working capital loans, secured loans and unsecured loans. Business loans are readily available if you are prepared to put the hard work into preparing your loan package. Business loans are also flexible. Because you may have different money requirements from another startup, your bank may be able to offer a loan suited to the needs of your start-up, with differing and flexible repayment terms.
An angel investor, or business angel, is an individual who looks for start-ups with potential to make them money back on their initial investment in exchange for start-up capital. Finding yourself an angel investor can be a great way to get your venture off the ground and also pull in some invaluable advice and support from an experienced entrepreneur, but you have to be able to make a good pitch and know your business inside out to win this kind of capital.
Pledge Your Future Earnings for the Business
If you’re a young business professional looking forward to making a bet on the future earnings of your business, consider pledging some amount of money from your company in exchange for funds. You can use an online platform to raise funds for your startup.
Look for Money from Family and Friends
Your family and friends know about your vision and mission. They understand your passion, your commitment and your journey when it comes to creating a business idea that is going to succeed. If they are in a position to help financially, they are great people to ask for support when it comes to kickstarting your business. There are obviously big risks involved in this for both you and the family members who offer to support you, and you’ll need to talk through in advance what will happen if the business fails to make their money back, but family and friends can often provide a great support system and the kind of moral and practical help too that bank loans alone just can’t give you.
It’s important, even when borrowing money from family and friends to do the same due diligence that you would with a traditional bank loan, and write a carefully researched business plan. Otherwise you’ll be risking not just a lack of profits, but a breakdown in future relationships too.
Many a company has had to bootstrap their way to success; working their way up with little or no external investment, and that may be a possibility in your case. But if it isn’t, and you’re struggling to get your start-up off the ground, make sure you look at all the different funding solutions available. Crowdfunding has changed the face of business financing and alongside more traditional methods for raising finance, it gives choices and solutions that might just work for you.