In uncertain financial times like these, if you’re starting a business and have decided to work for yourself and have a good business plan, you will need to be as creative as possible to source the requisite finance. The world of business and equity finance has changed considerably, and many would argue, it has become more democratic and simpler with the move online. As with most business processes funding, financing and loans can now be accessed online a lot easier than you think. Here are the top start-up funding tips that you need to know to make the most of these changes.
Create a clear financial plan
Before you approach the whole financing market to fill in applications for financing, you need to have a clear and concise financing plan as to what you need and why. Knowing what the funds will be used for was the first step, and no lender would allow their money to leave the building without a clear plan for its usage and/or growth. This will involve clear market analysis, financial projections, and your competitors’ knowledge.
Crowd fund it
It’s about the small investments and donations from numerous people that have only been possible with social media and online communication growth and proliferation. If the business idea is good, there is a chance of disruption, and you are sure the market exists then by posting on the suitable social media crowdfunding platform, you may raise enough to get the business of venture off the ground.
Use the available collateral you have
Before you look anywhere else, look at what you have for finance. Commercial or residential property is a great start and makes for easy financing. Property can be used to access hard money loans for real estate investment and a lot more, depending on the specific financial provider. Bespoke jewelry and high-quality watches can all be used to fund a good business idea, as long as you have a willing financier who accepts such kinds of collateral. As with any other finance, there will be risk and chances of loss, but the ability to start or create a start-up is more viable than you think. There are also, as discussed herein, various specific sector funders, and as such, one of the first things to do is to determine who funds what in your particular field of business.
Sell equity to friends and family
If it’s a great idea and the risk low, then why wouldn’t you allow those closest to you to get in on the ride and make some money with you. It is a little tricker having family and friends as your shareholders, but it is a growing trend and as a basket of investments, those who can afford it should be offered the opportunity to invest in your start-up.
Start-up finance is a tricky aspect to get right, but by starting to gather the information early and reading as widely as you can on the subject, you will mitigate against the risk.