How to raise money for your business 5 Clever Ideas
The hard part is choosing the most appropriate funding source. Each source, promising in its own way, has a unique set of advantages and disadvantages.
Here is a list of five sources of funding that have proven to be the most reliable ways to raise money for a startup.
While crowdfunding is a relatively new way to raise money for a startup, its popularity is increasing. When literally you crowdfunding solicit funds from a crowd of people.
To begin with funding from the crowd, you must first submit an idea you want to receive the funds. From there, people can choose how they want to give this project.
What’s for people who are funding the project? Most crowdfunding sites operate on a model of reward. Those who invest their money in a project rewards ranging in value depending on the amount of money invested occur.
Some of the most popular crowdfunding sites include Kickstarter, Indiegogo and fundable.
2. Angel Invest
Investors are best described as entrepreneurs who want to invest the money they have made in new beginnings. Some of the largest companies in the world have received their first round of funding from angel investors. Including Google, Facebook, Skype and Twitter, among others.
The benefits of an angel investor benefits go beyond just financial. An angel investor is also a valuable source of advice and connections. Some of the best known of the network that connects entrepreneurs and investors include Angel List, gold seeds, Tech Coast Angels and Investors Circle.
3. Credit Bank
Host Peter Daisyme, a company that recently increased the capital, said: “One of the most common forms for new companies to raise funds is through a bank loan When applying for a bank loan, it is important to note that you will be asked. that makes your loan guaranteed by the small business Association before being approved. we had the best luck with what will be approved or denied within 24-48 hours. is good because you know anyway and not have to play the guessing game. ”
The Small Business Association is a government agency that guarantees up to 80% of the loan value if it meets your criteria. Another way to be approved for a bank loan to provide another form of security, such as your home.
4. Risk Capital
The aim of venture capital is the target of investing early in a company showing strong growth potential. Venture capitalists traditionally receive shares of the company, who are funding these days, you can apply a combination of equity and debt.
Approximately 3 out of 4 companies with venture capital funds. Venture capitalists expect a big win to make up a lot of losses, and because this usually only invest in companies with high growth potential. venture capital funding may not be a viable option for you if you are in the market is quite modest.
5. Get a commercial partner
You may not have the money to finance your home on your own, but maybe you know someone who could help. If you are considering taking a business partner can be helpful to know that 28% of the 500 companies received initial funding Inc a co-founder.
When selecting a business partner make sure they share the same business objectives as they will have greater control over the management of the company. It also helps to have an agreement in place to buy if the business relationship goes wrong. The agreement should specify that the other partner must accept a proposed within a defined time period or partners own procurement exchange.