If you are taking a brave step down the road of entrepreneurship, the chances are you are feeling a heady mix of excitement, nerves and sheer terror. You may have been pondering this business idea for a good few years, and you’ve cut your teeth in the world of employment. Finally, you feel that you’re ready to say goodbye to the 9 to 5 and hello to the big wide world of the startup. As with any business venture, it will be your finances that will make or break your entrepreneurial dream. You need sound financial forecasting, a decent cash flow at all times and that all-important initial finding. It doesn’t matter if you’re selling ball bearings, opening an eatery or providing accountancy services for small firms. You need to have your financial ducks in a row before you begin. Take a look at these three more unusual ways to secure your funding.
Unless you’ve been living under a rock for the past five years, you’ll have heard of the ever-popular crowdfunding. People from all walks of life detail their venture, quest or mission online and try to encourage average people to invest their hard-earned cash. Many choose to give or lend money because of the philanthropist in them. Others need to see the value in what they are investing in. If you have an awesome business idea, share it with the world. Explain why your idea will make lives better. Offering rewards for different levels of funding is effective. This could be a gift pack, a free experience or even a small stake in the company that you’ve formed.
Rather than being some light emitting celestial being, a business angel is an expert who will, not only invest their money, but also their time and experience. Securing the funding of a business angel can validate your idea and demonstrate how an industry-leading figure has faith in your venture.
Many startups choose to secure their initial funding by paying a visit to the bank manager. They create pay stubs to show their proof of income, give a presentation on the merits of their business idea and hope that the person listening has the vision to invest. While you may secure cash this way, you aren’t securing the in-depth knowledge of an industry-specific professional. A business angel may prefer a stake in your business or even you, as an individual, rather than burdening you with the stress of an extortionate loan to pay back.
Sell Your Big Ticket Items
If you’re unwilling to part with the sporty little number on your drive for the sake of your business venture, then how committed are you to see your startup succeed? To impress the bank, the business angel and the people looking at your crowdfunding platform, you need to show the ultimate dedication to your startup. Sell the car, forget about the annual all-inclusive vacation for a while and get plowing your cash into your business.
The world of entrepreneurship is more crowded than ever. Make sure your venture isn’t one of the eighty percent that fails in its first year and secure the funding you need to make your startup a success.