There are many ways in which you can raise money for your startup business. Whether you’re looking to kick start your fashion businesses, start up a quirky coffee shop or create a set of home furniture products, there are ways in which you can find the money you need to get going.
Open your own wallet before asking for more
It’s often the case that when someone creates a businesses, or they have an idea, they put all of the money they can into it first, to get as far as they can, and then they look for financial support when their wallet is running low. This is fine as long as you leave yourself some money for food bills and other essentials! Make a budget of how much you’re willing to put into your idea, and then start doing it. So many businesses fail because the owner is unwilling to put their own money ‘where their mouth is’, and if you can’t do that, it’s going to be difficult to persuade a potential investor.
Find a strategic partner as soon as possible
We’ve seen so many businesses succeed when the owner has cemented a relationship with a strategic partner early on, and in most cases it turns into something really special that endures for years.
Look out for grants!
In the UK there are many grants, whether that be from universities, local councils or industry leaders, so don’t forget to look for them in your own back yard. There are probably hundreds of schemes in your area right now, and you competitors could be taking advantage of their resources, so you can too.
Match capital to milestones
We all know that having too much capital is bad but so too is having too little. Matching capital requirements to achievable milestones keeps the company from giving up equity before it’s required.
What about credit?
Yep it’s good to establish a line of credit. Even if you don’t use it, bankers will return your calls once one of their competitors has vetted you.
Commercial crowd funding is all the rage right now. This is the practice of funding a project or venture by raising money from a large number of people who each contribute a relatively small amount, typically via the Internet on major crowd funding websites. You often see this technique used for gaming industries, this is because people are willing to invest to get the game they’ve been waiting for, and it now means progress can be made just on the back of popularity! For startups it’s a bit more difficult, however, if you can back your businesses plan up with credible information and you really do your market research, then you may well pick up plenty of investors, helping you reach your goal.
These are just a few of the ways in which you can boost your chances of running a successful businesses one day, but always be on the lookout for ways in which you can raise money.