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Whatever your business must be it needs funding and a backbone to be established successfully in the market. When you start a venture, you will need the proper funding and money for it to have a boost. For a proper start-up you will need the money for proper resources too such as, an office space, equipment, employees etc.
This article lists down ways to help you start your business and for you to get necessary funding for it as well and easily finance a start a business;
1. PERSONAL INVESTMENT
First and the most hassle-free way for you to fund your start-up is your own money and savings. Not only will you answer to no-one about your progress and profits and be less stressed about answering to your superiors. Funding your own set-up will also help you out in the future if you need bank loans. This will prove your long-term commitment to the idea and big ventures will want to invest in the idea.
2. LOVE MONEY
The term “love money” refers to the money you can borrow or take from your loved ones, be it spouse, parents, family etc. Keep in mind that your loved ones may not have huge amounts of assets that they can provide you with. Also remember that when they fund your start-up, they might expect an equal share of the business as partners. Just because you are close with the investor doesn’t mean that you should take the partnership lightly but always be fair.
3. THE BIG BOYS
The sub heading “The big boys” is referred as big industrialized companies that are well known in the markets. Big companies such as Amazon have “Amazon Private Label” where they fund third party to manufacture the product. They then sell the manufactured product under their name “Amazon Basics”, this can be a good way to enter the market as well. Big companies can also be used for investments rather than private labels but you’ll have to grant them a share in the company.
4. “ANGELS”
“Angels” are wealthy individuals who are mostly retired gentlemen and women and are looking for a good place to contribute their money. They not only bring finance into your company but also contribute their experience, network of contacts and resources. However, they might expect a seat at the board where they can see and have a say in the management of the company. These “angels” tend to keep a low profile so you might have to look for them online in blogs or through various NGOs.
5. BUSINESS ACCELERATORS
Business accelerators/incubators support early-stage start-up businesses through investment. There are two types of incubators; one who provide support for the business through resources and money. The other type creates job opportunity for the people and helps to train them for the start-up requirements. Business accelerators share their company premises with you and allow you to conduct research in their labs. They part ways when you finalize your product.
6. GOVERNMENT SUBSIDY
Subsidy is a payment or other form of economic support that are given by the government to help certain companies or industries. Before applying for a subsidy, you should look at the criteria according to your state/province as not everyone is eligible. Mostly, you need to provide a detail plan of your business, total costs, Pros of the business etc. Some areas where candidates lose eligibility include the lack of relevancy in the research, wrong cost estimates etc.
7. BANK LOANS
Lastly, a common way of receiving funds for your start-up is bank loans where you loan money from a bank. To make sure you look like a strong candidate you must make sure that your idea is good. Not only should the idea be good enough but should be backed up by a strong plan. If you want a bank to loan you a certain amount you need to make your presentation eye-catching and believable.
These were some of the ways you can finance your start-up business. You can use this article to help and figure out which way would be feasible for you and your business. Some of the ways listed above were easier to achieve than the others. No matter what your business is make sure you are honest with what you do and don’t harm others for your cause.
