Got a business idea that you think will work? Finding funding is the next step. There are different avenues that you can follow to get financed. Here are four to consider.
1. Self-finance your business.
If you’ve got the money to start your business and believe that it will work, you can consider investing your own money in it. That way, you won’t find yourself needing to repay anyone for the loan and the accompanying interest rates.
2. Approach a bank.
Banks have long been financiers for businesses, including start-ups. Before you go to your branch to fill out a loan application, do some research first. Find out which banking institution is more favourable towards business loans and start-ups. Make sure that you have all the necessary documents, such as your business plan, an executive summary and the legislative documents proving your ownership. Carefully check your documents for errors because even a small mistake could lead to the bank to doubt you proposal and deny your application. Get a professional consultant, like a financial manager, to help you draw up your document. They should be more familiar with what the banks look for and can tell you whether your business plan is acceptable or not.
The ability of entrepreneurship to bring about economic change has become more published and better researched over the last decade. Large banks, have since developed service packages specific to the needs of entrepreneurs.
3. Bring in a partner or investor.
Bringing in a partner or investor is another option to fund a start-up. Other people may share your excitement about your business idea and be willing to invest in it, in return for an acceptable return. Friends and family, business acquaintances and community business leaders can all be potential partners or investors. Approach them in the same way you would a bank. Prepare clearly worded documents with your future growth expectations and financial estimates. The more upfront you are with them about the risks and potential returns, the better they will be able to decide how viable your business proposal is for them.
4. Let a Business incubator like the Co-Creation Hub assist you.
Incubators help new businesses overcome the challenges they face in the start-up phase. This can include the need to find funding. In-house experts may be available to help you prepare the documents you need to approach the incubator’s personal funding administrators. If the incubator doesn’t have any in-house funding options, many of them can direct you to funding agencies, seed capital funds or venture capitalists. Often the incubator may also help you prepare for your pitch sessions, where you pitch your business idea before a panel of prospective financiers.
Take your time and do some investigating. When you’re sure that you’ve found the best option for you, go for it. You could be in business sooner and easier than you ever thought possible.
Source – BT.org
