You have a business idea and a comprehensive plan to back it up. You have potential customers who are already interested in your venture. Your idea has been received with enthusiasm, which gives you the optimism you need to move forward. The only problem is that optimism doesn’t pay the startup and growth expenses, nor will it – ever. Don’t shelve your idea. You need to combine different funding options to start and run your own company.
Here are some funding options to check and then decide on to get your startup running and growing.
The First Funding Option is to Invest in Yourself
The first thing to understand about starting any business is you must invest in yourself. It’s unrealistic to expect others to foot your bills. You have to put forth some of your own cash, as well. One reason why is that it shows other investors you’re serious about your business. If you aren’t willing to take a chance on your venture, why should they? This makes perfect sense when you think about it.
You can invest in yourself by tapping into your assets. This is called bootstrapping by financial experts, and if you have savings, a home, credit, or other cash-driven assets, you might be able to borrow against it to get the money you need to open your doors. Don’t do this on the fly, however. Make certain you can replace your assets quickly and pay back any loans or lines of credit.
Once potential investors see you’re stepping up to the plate, they may also. Look to angel investors who will give you the cash you need alongside advice sure to help you succeed. In lieu of return payment, the angel investor will take a financial and/or management stake in your company. When you’re ready to grow, approach a venture capitalist. They are experts in taking businesses to their next level.
Other Funding Options
Crowdfunding
If you aren’t willing to give a stake in your company just yet, there are other options that will fund your venture with no strings attached. One new-fangled way to get the cash you need without any obligation to pay it back is crowdfunding.
Crowdfunding as the name indicates means that you want to collect funds from the crowd. So, you can start collecting money even you don’t have your product yet. Or, your product is not yet ready to be offered on the market. In such a way, you can achieve two goals. Get funding for your startup and validate your business idea.
There are business crowdfunding websites online and you can open a campaign with hopes for the best. If you meet your goal, the donations are yours to keep.
Grants
Too much risk? Honestly, in most cases yes. Reaching a financial goal can be harder than people think, and many prefer to apply for grants or small business loans. Don’t think that grants are just for minority, veteran, or women-owned businesses. Many local, state and federal governments have to grant programs for everyone. You just have to search for one that fits your needs.
Don’t look at business analyst jobs bay area listings to hire someone to do this for you, either. That’s a waste of your soon-to-be operating cash. Head to your local and state government portals and use their search engines. Use the federal government’s search engine, too, and don’t forget about the loan options offered by the U.S. Small Business Administration.
You can get your business venture-funded, you just need to open your mind to other possibilities. Your assets, family and friends, the governments, and individual investors might all see your vision for what it is: brilliant! See if they are willing to put their money where their mouth is and count the days to your Fortune 500 listing.
