Four Ways To Fund Your Startup

| October 30, 2014

Coins and plant

The job market is still extremely difficult for some people to succeed. With many companies only hiring people with years and years of experience, you might be on the outskirts of finding employment. Maybe the corporate life just is not for you and you’re thinking of breaking out of the nine to five routine. Many people are now starting to think of start up businesses as their escape and get rich plan. However, it is not easy to fund your start up and you have to be resourceful. Here are a few tips to get you started.

 

Your Money

Yeah that’s correct, if you want to be successful from a company that you are starting, you should probably start with your own money. This shows future investors that you believe in this idea so much you are willing to bet your liveliness on it. Look at your personal bank accounts and investments. See what you can afford to give. You could also check out LoanSource.com to take out small personal loans. You have to be willing to take the risk in order to make a statement about your commitment to your business.

 

Friends and Family

It can be tricky and even a little uncomfortable to ask your family for money, which is why you should not treat them as family when you are asking for money. You should approach them with an actual business plan and proof that you have invested in the company yourself. You should also explain why you are starting your own business and why you think you would be successful at running it. You can also use personal alarm keychain. If they do end up investing, make sure you keep them updated and involved as the start up progresses. But be weary of who you ask, don’t want to make Christmas awkward!

 

Business Loans

This seems obvious, and it is. The key to securing a business loan however is going to smaller banks and not big chains. The big chains have been doing this for a long time and if they do not see any proof of this company working or any revenue it has made, you are not likely to be receiving a loan. Big banks are great for franchises but not start-ups. You should try going to a local bank. Show them that this start up will not only guarantee a return on the loan, but it will also improve the community.

 

Private Investors

You don’t have to live in Silicone Valley just to find venture capitalists, although it would help. The best way to find private investors is through networking. Most of these investors will trade you start up money for a piece of your company. They want to make sure that if your company makes it, they will not only receive their investment back but also financial rewards for the remainder of your company’s success. Reach out to other successful business owners to see where they got their venture capitalists.

 

The key to succeeding is putting yourself out there and not being scared to ask for what you need. The worst they can say is no.

Category: Finances

About the Author ()

Comments are closed.