5 Ways To Raise Money For Your Startup From the Get-Go
A startup business is nothing without the right capital to get it off the ground, which is why developing the right strategies to finding investors is necessary in the process. Whether you are willing to ask your family for a helping hand or submitting your business plan to an online platform or contest, there are a plethora of options that you can utilize when sourcing funding for your company. Below are a few methods that can be useful if you don’t know where to start when trying to raise capital for your startup business.
- Start with your savings
If you are itching to get started on your business idea the easiest way to begin the process is by using any money you may have saved up as an initial investment. It might not be easy to find an external investor right away or stumble upon a large amount to get you all the basic equipment to run your business, so start slow and use whatever money you may have accumulated from your previous jobs to get your company on its feet. Self-funding can be intimidating in the early stages of a business, because you never really know if it will take off as expected, but at least you’ll give yourself a solid start until you are able to source capital elsewhere.
- Find Investors
With an established business plan to back up your company you can approach the option of finding investors to pay for you to kick start your idea. During this process, you want to be sure to share all pertinent information with potential investors through a secure virtual data room. There they can review all your financial documents, be made aware of any outstanding debt or litigation you may have and determine whether or not they want to partner with you in your endeavour.
An effective virtual data room provider will allow you to effortlessly upload all vital documents, store them in an organized manner so that can be easily reviewed by users, and allow you to manage the security settings so that all your data stays under your control. Interested investors will be pleased with the accountability of a confidential platform during the due diligence phase of your startup.
- Ask the internet
It has become incredibly common to turn to the internet for a helping hand with any financial investment. Crowdfunding through websites such as Kickstarter allow you as a small business owner to show your product or service to a market that might be interested in seeing it become a full-fledged company. The important factor with this process is to be sure you have something that has never been done before and that consumers are desperately in need of.
Much like the aforementioned VDR, these platforms act as a space interested consumers can review your pitch and business plan and decide it if it worthwhile for them to invest. Once you have an innovative idea and you are ready to share it with the world there is the potential that other, everyday people will see the value in your vision and donate to your business so that you are able to buy your supplies and get started.
- Enter a contest or government programme
Rather than having to go out looking for potential investors that might be interested in the business you are trying to build, you can enter various contests that are designed to connect you with investors. With a comprehensive business plan, you can showcase your idea and win over their intrigue, leading to a partnership in the future or a monetary prize if you are the winner or finalist.
Similarly, government programmes allow you to show your business idea to a committee who then decide if they are willing to grant you startup capital. However, while government grants provide substantial funds to get your business off the ground, the process can be much more arduous and time-consuming. It’s just a matter of distinguishing your best course of action when sourcing the appropriate funding.
- Turn to family and friends
If all else fails, you can always turn to those who might be willing to support you unconditionally—your friends and family. Consider asking them for a helping hand in the early stages of your startup, just to get you on your feet without the stress of having to source capital from investors or online programmes. While this method might not be the most lucrative, it will give you that boost in order to get started and create a your own profitable startup business.