You have made the exciting decision to go into business. This is it, you know that your business is destined for big things. Your business is going to stand out from the crowd! It’s going to be a success and nothing is standing in your way. Actually there is one thing standing in your way, to quote Tom Cruise in Jerry Maguire
“Show me the money!”
Yes, you need some money if you are to get your business off the ground. You have worked out your budget and you just don’t have enough money in your savings. What should you do? Give-up? Never! There are lots of different ways you can raise money for your business. Here are 4 ideas for raising money for your new start up business.
Family And Friends
This is one way of raising money for your startup but it is a way that should be treated with caution. Do you really want to have to ask your family and friends? Can they afford to lend you the money? Are you going to feel under pressure to pay them back the money as soon as possible? Starting up a business is stressful enough as it is and you really don’t want any added pressure. However, if you think that borrowing money from your nearest and dearest won’t strain your relationships, go for it! Just be sure to check that they can afford to lend you the money. Also, make sure that you put the lending agreement into writing. Make sure those terms are clearly laid-out. You need it in writing to protect yourself and the people you are borrowing from – https://eforms.com/loan-agreement/ has some examples legal agreement templates that you can download for free.
Startup Business Loan
If you don’t want to borrow from friends then a startupbusinessloans.co could be a great option for you. They will talk you through your options and as a result it will feel less daunting. They will also compare fees and discount rates. You will need to make sure that you have a good business plan in place and that you are clear on how much you need to borrow and why.
Crowdfunding is becoming increasingly popular as a way of raising money for a new business. It does what it says in the name – crowd funds. You share your idea for your business and then the public are invited to give some money. How much or little is down to them. Most crowdfunding sites use a reward system where people who invest in a new business venture are given some form of reward.
Get A Partner
Getting a business partner could be the way forward. However, you need to do this with caution. It is a popular way of raising money but be wary of signing too much away. Mark Zuckerberg learnt from the mistakes of earlier dot companies, who gave away almost all of their equity to venture capitalists. Mark decided that he wasn’t going to make the same mistake and his 28.1% Facebook stake is now worth a cool $14.9 billion.
When funding your business it is important that you choose a solution that works for you. You have a business to run so find those funds and start enjoying the profit.