Thinking of starting your very own innovative business?
These days, more entrepreneurial people than ever before are beginning to discover the benefits of launching their own company. After all, you don’t necessarily need a huge warehouse full of products and a team of employees to become a startup owner anymore. You can launch your company entirely from the comfort of your own home.
However, even if your startup is a small endeavor that requires very little initial investment, there’s a good chance that you’re going to need to find some extra cash to fund it. Your own personal savings might not be enough to cover everything. Here are some of the easiest ways that you can fund your startup dreams.
1. Get a Loan
The most obvious way to fund a startup is with a loan. Though there are specific business loans out there for people who want to create their own companies, these can be a little difficult to get at first. After all, if you want a business loan, you need an excellent credit history, and you need to have at least some evidence that your business is going to be profitable. However, you might be able to get a business loan if you’re willing to put assets up as collateral.
If you can’t get a standard business loan, consider speaking to lenders about whether they would consider letting you use a short term loan for your startup, or just letting you open a line of credit.
2. Trade Equity for Services
Sometimes, the main reason you need money for your startup is so that you can pay for experts to help you grow. Maybe you need someone who can do all your marketing for you, so you can promote your business to new clients. Trading equity for services is a great way to make your dreams come true here. Simply ask a marketing professional whether they would be willing to take a small share in your business in exchange for help.
Obviously, you don’t want to give all your business away before you’ve had a chance to launch your company, but this is a good way to get started if you don’t have any extra cash.
3. Speak to Capital Investors
There are people out there that are specifically looking to give money to startups. These are investors that want to get in on the ground floor of your business before it’s had a chance to grow into something astronomical. If you can meet with investors in your industry and convince them that your company is going to be special, then they might want to be a part of your growth.
Most investors will be looking to spend their money on qualified and innovative startups that have a proven business model. You’ll need to show that your company is up to to scale and brimming with chances for growth.
4. Consider Angel Investor Groups
Since capital investors require you to show some evidence that your business is going to be profitable, they can sometimes be difficult to get a hold of. However, angel investors are a little easier to seduce. Most large metropolitan areas have groups of individuals that you can reach out to who benefit from things like access to plenty of cash. These people are usually excited about supporting startups that appeal to their values.
If you find the right angel investors, they could be willing to provide you with millions of dollars so that you can get your idea up and running. However, keep in mind that different investors come with different terms and conditions that you’ll need to meet.
5. Try Looking for Grants
Finally, if you’re having a hard time finding someone to invest in your business, and you can’t apply successfully for a business loan, try looking for a grant instead. There are plenty of government funds out there that are allocated to support the development of important causes and new technology. If your company is dedicated to something crucial, like building new educational resources or addressing social needs, then you might be able to find a grant that will help you to get started.
Crucially, applying for grants can be a quite a stressful and complicated process. If you’ve never done it before, it might help to work with a professional on developing your application. There are groups out there that can help you to figure out what kind of grants you’re most likely to be eligible for.