There are plenty of us who have a business idea that we think will work. Some of us leave it as just that — an idea — but there will be a few who decide to pursue it and see if they can make a success of their scheme. Yet there will be some inevitable barriers to overcome at the beginning, which may include funding.
So what options are available to you at this point? If you think this problem may stop your dreams before they begin, then think again: there are plenty of different financial avenues to explore. Have a look at some of those here and consider which may be the best for you and your business.
These are usually web-based projects that allow those people with an idea, project or business to connect with many potential investors through various platforms. The types of investment here can be equity, debt, or rewards based. There are a great number of crowdfunding platforms that you could use, so do your research before you launch.
You may wish to fund your business yourself. You could use personal debt (e.g. credit card), or your savings. You may also want to consider selling any assets you may have to generate money.
Ask friends and family
They may be able to give you equity or debt funding, but check that these investors know the risks here. Businesses can fail, so the loss of capital can be hurtful, which may lead to ruining friendships or unpleasant family get-togethers.
Get a loan
There are several options here. There will be many brands who will be interested in lending to a small business such as yours: have a look online. Banks can also offer small business loans but may require a track record.
You can also look at online loans, such as those provided by online UK lender – Loanpig. This will help you get some extra cash with a short-term loan that can be approved swiftly.
Use angel investors
These will be people who have spare capital and are willing to take a risk on a new business if they believe they will get a significant return for this investment. You’ll get another benefit with this, too: an angel investor will be more willing to be a mentor to you, compared to other types of investors.
Get a strategic partner
Do you have a relationship with someone who can benefit from your service or product, such as a distributor, supplier or customer? If so, then see if they want to get involved. Show them what they could gain by getting involved: they could offer you certain services, reduce costs, or even investment.
Pay as you go
Otherwise known as bootstrapping, this can be a cost-effective way for you to make sure the capital from your business can go as far as possible. This means each amount you make goes towards paying your company’s costs. You might not pay yourself a salary for a bit, but it’s an easy way to raise money.
Try an incubator
A business incubator will offer small amounts of money, training, networking opportunities and tools to small brands and start-ups in a particular area. You’ll find many of these incubators in large cities; if you’re in a small town, though, have a look and see what may be available.