Everybody comes up with grand ideas; largely because are ideas are easy to think of. For some people, they have different business ideas that never really kick-off due to financial incapabilities and thus their dreams just never take off. For others, it could be that they started and they are in the startup stage and simply need more funds to accelerate their business growth. Whatever the reasons might be, one thing stands, you must be able to represent the brand well. What this entails is that you must know your onions; have a great plan and proposals and be able to convince your targeted investors. With that gotten, below are ways you can get funding for your startup.
You have to be ready to fund this startup with your own funds if not, why should anybody else do? Often times, investors that you pitch to would always ask the amount of your own money going to this startup and a negative reply shows a level of lack of seriousness for some and so they decline. One way to fund your startup and kickstart the process is to look inward; sponsor the projects from your savings if you have.
You also have the option of talking business Loans from the bank. This has proven to be not as easy as people recommend on paper but however, banks like microfinance banks that are gradually gaining ground, give credit facilities with minimal collaterals.
Grants offered by governments and even individuals are also a good source. Sometimes it can be competitive and you might have to pitch your idea before a panel in the form of a contest but there are some that do not require this. Look out for opportunities and leverage them.
Angel investors are basically people with capital that can readily invest in your business as long as they key into your vision and are interested in your business proposals. Angel investors can be one person or a group of people. They don’t just give you funds and leave you hanging; they are so invested in your business that they sometimes offer a sort of mentoring in order to guide you especially because it is a startup. Angel investors can be within a network; for example, we all have that rich uncle we can pitch an idea to and if he chooses to invest in your business, then he is an angel investor. However, they do not do this for free. Depending on the terms of the contract, it could be that a refund will be expected at a stipulated time, he could own a part of the company, etc.
You can set up a Crowdfunding platform and you can easily pitch your business idea and .there are numerous websites where you can pitch and get people to invest in your business; this basically you raising money from the internet. Examples of websites are; crowd supply, kick starter, crowd funder, Patreon, etc. All you need do is create a profile inputting your business details, set a funding goal (how much you really need) and put it how there. This is a great platform to use if done properly as it not only helps you get funding but also helps in the marketing of your products or services. Note however that this is a not a lending platform and thus you are not expected to pay back.
Venture capital also involves invest from professional investors that are extremely wealthy. They invest in businesses that require large capitals and usually want to be part of the board of directors; basically be a major stakeholder in the startup.
You might have to determine if you really want to go through this route but you certainly can get funding from family and friends. Not exactly recommended because a business set back can put you in awkward position with your loved ones but yet this is still an option. Popular entrepreneurs like Donald Trump and Aliko Dangote are only a few examples of people who have enjoyed business funding from this source.
Networking and putting yourself out there. Not just in the physical world but also in the digital community. Figure out where your potential investors are and go after them e.g. platforms like LinkedIn can give you the necessary access, post on Quora telling people of your plans and needs. Do not be afraid to think outside the box and put yourself out there.
Startup incubator or accelerators offer seed funding, help with funding and sometimes offers you a space to work to ensure direct working relations. An example is Ycombinator. Online leading platforms also require collaterals but it is not as restrictive and difficult as the typical bank. Now you can access loans within 24 hours if you fulfill all requirements.
There are a wide range of options and some of them include; Kiakia, Lydia, etc
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