Top 5 Ways To Get Finance For Your Startup Business
Start-up businesses face many challenges to have their ventures financed. It is always an uphill task when an idea is purely on paper or there aren’t much data and track record to establish the sustainability of the venture. No matter how promising your start-up business may be, you will find it difficult to get all the funds that you need.
Despite the challenges that you would face, there are some solutions that you can try. Here are top 5 ways to get finance for your start-up business. You may not get an angel investment of a fortune but you can certainly get what you need to get started and to operate for a considerable period of time by which stage you ought to generate profits.
1. Bank Loan
Traditional bank loan remains to be a popular choice. Rates of interests are not very high and if you have a healthy credit history then a reputed bank would not be worried about lending you a small to medium sized loan. However, if you are looking at a huge loan from banks then you need to show that your business has been around for a while and has been doing well. For a start-up business, you would get a small loan and you will have to provide collateral for the same.
2. Government Grant
There are various federal and state sponsored grants which you can avail. You should look at grants that are aimed at the industry you are in. For instance, there are some types of grants which promote certain technologies, certain types of small to medium enterprises and certain agendas of businesses. Pick the right type of grant that suits your objective and type of business and you shall get the grant successfully.
3. Borrow Money
Borrowing money from family and friends is one of the simplest ways to get finance for your startup business. You can make your family members or friends stakeholders if you want. You can also pay them back with interest if that works better.
4. Venture Capitalists
If you startup business has the potential of expansion and turning into a brand then venture capitalists would be very excited to be a part of your endeavor.
Crowdsourcing can be a great way to finance your startup business. All that you have to do with such a concept is hit the kind of people who would be passionate about the type of business you wish to start. For instance, if you want to produce a short film, you would want to target movie buffs. If you intend to open a restaurant then target connoisseurs.
REMEMBER: Never give up on your dream. Put a plan together and go after it. Do your S.W.A.T ( strength , weakness, opportunity,threat) first before you look for money. A plan without action is just a PLAN.