Creating your own startup business can be a real money-making opportunity, however, the fact of the matter is you’re likely going to need a fair amount of cash to actually kick off your journey to profit. Finding the funds to get your startup off the ground can often seem like one of the most difficult aspects of your project, yet it doesn’t have to be this way – there are several simple ideas that you can pursue to get the cash you need to build your startup from the ground up, and there’s truly no time like the present to begin!
So, if you’re interested in finding out more, then read on.
Find An Investor
One of the best methods that you can pursue to find the funds you need for your startup is to source an investor. An investor is someone who is willing to provide your startup with a bulk sum, likely in return for a number of shares or a percentage of profits. A notable benefit of an investor is their past business experience, as finding a seasoned entrepreneur to fund your startup can provide you with the added extra expert advice and support that you would not access through other methods of funding. Approaching an investor can be a nerve-wracking experience, but all you really need to do is take some time to prepare a standout pitch.
Your pitch needs to include key details about your startup, including the product or service you plan on selling, and a range of projected statistics and financial information to give them an idea of your expected success. If they’re interested then they will likely do some kind of bartering with you to find a deal that is most beneficial for them, so it’s best to come up with a figure that you can bear in mind to ensure you don’t fall below the sum you need to get things moving. In the future, when your startup is making a healthy profit, you have the option of buying out your original investor so that you can own your business outright.
Getting A Loan
Another option that you might like to consider to fund your startup is a loan. A loan can be from a bank, a business or a private account, depending on your financial history, needs and connections, as many factors can influence the type of loan you are able to benefit from. A loan provides you with a bulk sum of money, on the condition that you will pay back a small fee each month for a set period of time until your loan is fully repaid with added interest.
A bank will likely provide you with the best interest rates, but you will need to have a sterling financial history to prove that you will be able to pay back such a large business loan – this isn’t easy, and it can be very tricky to find such a loan if you’ve made even a simple mistake such as forgetting to pay a utility bill. Alternatively, there are businesses that offer loans, some to those who need money fast like cash train, and some who offer loans to people who have a poor financial history. In both instances, the interest rates are likely to be higher when compared with a bank loan, but this is simply due to the increased risk of nonpayment.
If you know a particularly wealthy or charitable individual who might be interested in loaning you the money you need for your startup then of course this can also be a brilliant option, but this is very rare and can be a little dangerous unless you create a written contract that describes your loan, signed by both parties.
Crowdfunding can also be a great idea for you to consider when you’re trying to find some cash to get your startup going, as many people have found great success when seeking out kindly donors who can contribute to their cause! Crowdfunding can be a particularly effective option if your products and services are made to help people in any way, as you can appeal to people’s emotions and tug at their heartstrings to encourage them to donate to your startup and help you make a difference. You can set a target and share out a link to your crowdfunding campaign with a description of your goals and how you plan to reach them to provide donors with clarity that their money is going to the right place.