Top 10 Easy Ways to Get Funding For Your Business
Many aspiring entrepreneurs have the dream to have their start-ups established. However, more often than not, they come across a situation where they face a lot of difficulties in gathering up funds for their start-up. The easy Ways to Get Funding For Your Business.
According to the various studies conducted on the success rate of start-ups, we found out that more than 94% of the business fails in the very first year of their launch. And mostly this failure is due to lack of funding sources.
However, we do not want your start-up to face the same fate, and thus, we have come up with an article that highlights ten different ways in which you can gather funds to keep your business up and running.
Read on to have an in-depth view of the different fund assembling techniques.
1. Bootstrap Your Business:
Self-funding is generally referred to as bootstrapping, which is considered to be one of the most effective ways of getting started with a business.
Generally, the first-timers face ample difficulties in gathering up funds for their start-ups for the very reason that no investor is ready to take a risk.
Therefore, you need to have traction and a potentially successful plan prepared for yourself if you are not ready for bootstrapping your business.
2. Crowdfunding is Another Option
Crowdfunding is one of the recent techniques that have been introduced into the world of start-up financing, which has gained ample popularity lately.
Crowdfunding is referred to as taking a loan, contribution, pre-order, or investment from more than one source at a time.
Crowdfunding works in a unique manner in which the entrepreneur is going to pitch for his or her idea on a platform, out of which the interested consumers or investors shall raise funds for the particular business.
3. Get Help from Angel Investors
Angel investors are those financial sources that have a keen interest in financing the start-ups and have ample amounts of surplus cash.
These investors generally work in groups to screen out the proposals before investing their money on a particular start-up. They often help you with skilful advice and offer mentoring with strategies apart from providing Capital for your business.
Many prominent companies have sky-rocketed due to the contribution of these angel investors.
4. Fetch Venture Capital
Venture capital is your arena to make big bets, as they are the professionally managed funds that invest only on companies that possess huge potential in proliferating.
Usually, the Venture capitals are investments against equity, which take an exit whenever there is an acquisition or an IPO. The Venture Capitals serve the purpose of offering you with mentorship, expertise, and acts as a source of litmus noting the whereabouts of an organisation.
They skilfully evaluate the scalability and sustainability of a business.
5. Accelerators and Incubators Can Help
Many early-stage businesses often consider the Accelerator and Incubator programs as a major source of funding. These programs are a part of many major cities, which assist hundreds and thousands of start-ups every year to get a quick start for their businesses.
While Accelerator programs serve the purpose for a business to take a giant leap, Incubator programs nurture a business from a ground level and help them grow further.
6. Winning Contests Can Help You Raise Funds
Winning the contests can tremendously help you in raising funds. Also, the opportunities for gathering funds increase in this way.
Competitions for fundraising further widen the spectrum for the entrepreneurs in enhancing their ideas, which helps in gaining stability in their business from the grass-root level.
The ultimate motive of these competitions is you either have to prepare a business plan or curate a product, which will represent your business in the competition and help you win it too.
7. Take Loan from Banks
Generally, banks are the first thing that comes to the mind of an entrepreneur when he or she is trying to gather funds to establish their start-up.
The process of raising funds with the help of a bank is usually the same –you need to share the plan of your business, provide them with details of valuation, give them the report of your project, and based on all of these factors, your loan amount is then sanctioned.
Several banks worldwide have various programs that will help you raise funds through SME finance.
8. Microfinance Providers or NBFCs Could be Great Too
It is not easy to qualify to get a loan from the bank. However, this doesn’t mean that all your options have ceased to an end.
Microfinance or NBFCs are a tremendous way to gather up funds for your start-up. This is a fantastic initiative for entrepreneurs who cannot have access to traditional banking services.
In recent times, microfinance and NBFCs have gained a good amount of popularity amongst the bubbling entrepreneurs.
9. Start-up Capital Offered by Government Programs
There are various Capital raising plans introduced by the Government, which will help you get funding for your start-up.
This was basically to motivate the entrepreneurs in making their products more innovative and come up with business ideas that are unique and will surge in the upcoming era.
The basic agenda of getting a loan through Government programs is to submit the planning of your business, and once your idea has been approved, your loan shall be sanctioned.
10. Ultimate Options to Raise Funds
When you have tried each and every plan that has been mentioned above, there are a few more left in your sleeves.
You could try out options for pre-product selling, which is often overlooked yet an efficient way to raise funds for your business. You could consider selling out some assets.
However, this might seem like a tough decision to make, if you are confident enough with your business plan, and all other options have ceased to exist, you could give this a try.
If you want to make your business proliferate fast, you will need external sources to raise Capital. If you simply consider bootstrapping and do not take any help from outside sources for too long, you won’t be able to take advantage of the opportunities that the market has to offer. Therefore, consider all the aforementioned options to gather funding for your business.