Funding solutions for an up-and coming startup
Funding is only part of it, and you need to do the rest of the hard work.
When you have a great idea for your start-up, and you have created your detailed business plan and worked out how much funding you need and what it will be used for, it is time to start looking for funding sources. This step will take some time to figure out, but being prepared will provide you with all the options you can pursue.
First, ensure that your business model or invention is not already copyrighted or in the process of being created elsewhere. Keep up to speed with all the new business launches in your particular field of interest.
Additionally, follow newly invented gadgets and electronics, as they come out if you are creating a product. You can find a selected list of the coolest gadgets, inventions, and new tech at Americaninventorspot.com where they keep on top of all new productions and offer their reviews and feedback on up and coming gadgets in the market. It will never hurt to stay in the know.
Now that you are sure you have a new and different idea, finding the funds is the next step. There are a lot of different ways to fund your startup, and the best way to go around it is to have more than one source rather than relying on one source of capital. You should look for several funding options and apply to all of them so that if you face problems with any source, you would still have others to fall back on.
As you need to give your business every chance to grow, securing your funds is one step towards achieving your target. We have gathered a few sources that you can explore for funding opportunities.
Start with Yourself
Make a personal investment in your own start-up. If you have already saved up some money, then that’s great. If you haven’t, look to set up a few months of savings from your current job salary to set aside. Another option is to look into credit lines with 0% for a year promotion. These will go a long way to start your business. Securing at least 3-6 months of operating expenses of your own money is ideal. At the risk of losing it all, personal investments should only be a part of your funding sources.
Help from Your Network
Ask for the help of your immediate network of family, friends, and relatives. They are people who already believe in you and would want you to succeed. Unless you are lucky to have a family member invest in your startup fully, this source of funds will most likely be a contribution or a part of other sourcing options.
However, don’t be discouraged if you aren’t able to secure any help from your surrounding network, as not everyone will be willing to take the risk that comes along with a new business venture. Keep in mind that you still have other viable options.
Crowdfunding Sites and Start-up Launch Platforms
Crowdfunding sites have not been around for long, but their popularity and effectiveness has been proven over and over. They provide you with access to all types of investors you would not otherwise have any way to connect with. Investors on crowdfunding sites are very diversified and can be one single investor, or a public company, or even charity. All of these work on raising money that goes towards business startups and product creation.
Keep in mind there are different types of crowdfunding models: investment-based, loan-based, donation-based, and reward-based. So make sure you are aware of which type you are applying to before you sign up, and pick the crowdfunding site that is most aligned with your vertical and goals.
Angel investors are people who are willing to invest in new startups; not only that, but they offer guidance and mentorship throughout the development and launch phase of your company. A quick online search will be able to provide you with the list and sources for angel investors in your region and for your required investment type.
Find Grants, Loans, and Government Programs
Finally, there are options for loans and grants that are either funded by corporations or NGO’s or directly provided through government programs. The type of grant or loan depends on the government branch and what type of businesses they are campaigning to support. By conducting your research, find the programs that fit your startup vertically and apply it to them in order to add another funding option.
As explained, there are many different ways to find funding solutions to achieve your business goal. Don’t rely on one source and keep your capital streams diversified. However, keep in mind that just because you have the money doesn’t mean your business will succeed. Funding is only part of it, and you need to do the rest of the hard work.
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