Getting the right amount of funding that you need to get your business off the ground and lay the foundations for growth is certainly no easy task. You need money to launch your business, and this can be seriously stressful when at times it seems just about impossible to get.
Luckily for you, there are several different options on the market these days for securing business funding, through revenue streams or other means that you can use to inject the much-needed cash into your business idea and really get started. No matter how much you need to start or grow your company, keep these tips for getting funding in mind.
Build Relationships Within Your Network:
This is one of the most important things that you can do when it comes to increasing the chance of getting business funding. Having a strong professional network is key to getting in front of and being introduced to the right people who can help you get the funding you need to both start and grow your business. Stay in touch with past colleagues and managers, and attend as many local conferences and networking meetups as you can; this will help you meet new people that you can add to your network – and they might just be the person to eventually introduce you to an investor who’s interested.
Try Small Business Lenders:
Small businesses and startups don’t tend to have a lot of luck getting funding from the bank. Heading to the bank armed with your business plan might have been the first idea that sprang to mind, but you probably joined the thousands of other business owners left disappointed after that meeting with the bank manager. Instead, look for lenders who specifically deal with small businesses like yours. There are several small business lenders online and sites like AdvancedPoint make the process even easier; it’s a comparison site for small business loans – just put in your details, specify how much you’re looking to borrow and you’ll get quotes from small business lenders to compare. Much easier than trying to convince the bank!
Look For Venture Investors:
Many entrepreneurs gain funds by exchanging a percentage of company ownership for funds from an investor. The terms of an investment relationship can vary as it really depends on you, your company and your investor, and what you agree on – but it can certainly be a good method of getting the money that you need, especially if you’re trying to avoid borrowing. It can also be a good option if you are just starting out in business and don’t yet have any profits or income to put back into it. Be prepared; finding the right investor will take a lot of your time and effort, so do your homework and look for investment groups in your local area or venture capitalists who invest in your industry. Chances are, you’ll have to pitch to a few before somebody likes the look of your idea enough to part with their cash.
Getting funding for your small business idea isn’t always easy. But thankfully, there are plenty of ways to get the cash you need for growth.