Finding The Fuel For Your Startup.
October 25, 2017 by Staff
Filed under Money/Business, Tech/Internet, Weekly Columns
(Akiit.com) For a lot of people working in the modern world, the idea of running a business is becoming more and more appealing. Thanks to the Internet, it’s never been easier to get started on your own venture, but you will still have a lot of work to do. From the marketing and sales you conduct, to the accounting and money management at your feet, the web can’t solve everything. For a startup, the hardest of these areas is almost always funding.
Most new businesses need to have some money lying around before they can get started with their customers. If you have a building, there will be bills to pay on top of all of the real estate fees. For businesses with employees, you will have to start paying people straight away, even if you’re not making money yet. Most of all, though, the products and jobs you have to supply will have to be there before you get anything in return. To help you out with this, this post will be exploring some of the best ways to secure funding for your startup, along with some ways to avoid spending during this stage entirely.
- Using What You Have
If you have access to money already, this is the best option you have. This will leave you in complete control of the company, while also showing future investors that you believe in what you’re doing.
It may be hard to think about cracking open the savings you’ve
worked so hard for. But, in reality, all the money is doing is sitting around, anyway. If you view your personal funding as an investment, you can look at it in a similar way to a savings account, as it will be making you more in the future. This will also help to keep your business under your complete control. Having other people on the scene could make it harder for you to do what you want, and may even slow down your company’s growth.
The bulk of a lot of people’s savings isn’t held in an account or with a bank. Instead, your home is worth a huge amount, and this can be used to help give your business the push it needs. Using a website like https://altrua.ca/, you can find out how much you could get for remortgaging your home, while still keeping hold of it. Of course, you will have to pay this money back over the coming years. But, if your business is the success you hope it will be, you may not have to worry about this, as you’ll have plenty to pay it off.
- Using Someone Else’s
If you don’t have savings or a home you can get money out of, you still have some other options which don’t involve getting an unwieldy personal loan. Using someone else’s money to push your business in the right direction is a great way to start out. Of course, though, you’ll have to find someone to give it to you, first.
In most cases, a business partner is your best option here. Instead of giving you money and simply sitting back, this sort of support can be invaluable when there is loads of work to do. The best candidates for this role are people who have already started a successful business in a similar field. For example, if you wanted to start importing nice coffee, a cafe owner could be a perfect partner for you. In a lot of cases, you can balance the money they invest with the work you do, leveling everything out in the end. This is a very secure way to find money for your company, as long as you choose someone trustworthy.
There isn’t always room for two when it comes to a business. If you don’t want to share like this, or simply prefer the idea of being a lone wolf, looking for traditional investment could be a better option. The first choice you have here is to take a special loan from an individual or business, paying them back one you earn a certain amount. Or, instead, you could give away part of the business, losing some of your earnings in the future. Either way, you will have to work hard to convince someone your company is worth their time and finance.
- The Alternatives
If you don’t have savings or the time, resources, or knowledge to find an investor, it can be very hard to know where to turn. Thankfully, though, you have a couple more options to help you get started. Below, you can find some alternatives to seeking funds for your startup.
When you’re first starting your company, you have to make a lot of big choices. The most important of these will be the direction you choose for the business, determining how much you have to spend to get things going. In fields like software or web development, online marketing, and content creation, you don’t have to spend much at all to start making money. A great example of a company which cost nearly nothing to create is Facebook. Nowadays, this company dwarfs those around it, even having started from nothing at all.
In some cases, your dreams will be a lot bigger than the challenges before you, and looking for a free business to start simply won’t do. Thankfully, you still have an option to help you out. A group of people is always able to accomplish more than just one, and you can use this to your advantage. If you can find friends with skills you can use, pitching your business to them could land you with a teammate and a little bit of funding, too. With a handful of people like this, it will be a lot easier to get started.
Hopefully, this post will inspire you to start searching for secure funding for your startup. This sort of effort can be very daunting when you first start, especially if you’re new to business. Of course, though, with the right time and effort, you can find an option which not only keeps you safe but also provides what your company needs.
Staff Writer; Jerry Parker