If you own a business, you’ll understand that it is a rocky hill to make your business grow and thrive. There are many ups and downs that you have to deal with. One of the biggest challenges of any business is finding the funds for your business. It becomes critically tricky when you have a small start-up and still working on standing on your feet in the market full of competitors.
If you own a business and you are looking for funds, then here’s a recommended reading. You’ll learn almost everything that you need to know about the whole process of getting finances for your business. However, in this blog, I’ve narrowed down some tried and tested ways to get funding for your business.
Yes, Crowdfunding is An Option
Crowdfunding has become popular ever since different websites started offering it as a service. However, there are still a handful of sites that provide the right crowdfunding. Kickstarter is probably the most recognizable among all.
Such sites have become very popular among investors, entrepreneurs, and the general public. So, if you are looking for funds for your business, crowdfunding is a great option to do so. Remember that all such websites have their own pros and cons. So, choose the one that suits your needs the best.
Angel Investors Can Do the Trick
Undoubtedly, angel investors stand out from all kinds of funding options. The main reason is that they are always looking for the business to invest in. Therefore, your chances of getting a decent amount of funding increase many folds when you are looking for an angel investor to invest in your business.
You’ll be surprised to know that most of the top tech companies like Google, Yahoo, etc. were initially funded by angel investors and look where they are now. So, don’t hesitate to search for an angel investor for your business because the chances are that they’ll be already looking for you.
Just like an angel investor, a venture capitalist is also looking for businesses and start-ups to invest their money. However, the only difference is that more often than not, they also want a share of equity in your business. VCs are mostly looking for making money for themselves through your company. It is not bad of a deal given the fact you are getting the funds you need, and it ultimately helps your business to grow. So what if it is coming with a small price, it is eventually going to be worth it when your business is on standing feet.
Microloans Can Be Your Way Out
Although microloans are reserved for non-profit organizations throughout the world, you can get them for your business as well. They are usually granted to people who would not normally qualify for other kinds of bank loans. Instead of giving a donation to the non-profit organization, microloan organizations allow individuals to invest in economic opportunities.
In small and developing countries, microloans are becoming popular with every day passing due to their practicality.
Vendor Financing Is another Way
This option ultimately depends on how good your negotiation skills are. If you don’t have the ability to pay your bills right away, but you are sure that you can sell your product within the given time frame, then this option is excellent for you.
Most vendors require payments within 30 days before they implement penalties. But it takes almost 45 days from the purchase of goods to sell them. It is where your negotiation skills can play a critical role. All you have to do is get your vendor to extend and the date you’ll be able to pay them whatever you have taken in the form of goods.
Product Pre Sales Do Work
This option applies to the businesses that are purely based on the sales of a single or more than one product. All you have to do is to put your product on presale. By doing so, you can be sure not to make too many and have a warehouse of unsold goods. It also keeps you aware that consumers are relying on you to follow through.