One of the biggest challenges startup entrepreneurs face when launching a new bus
iness is tackling how to raise funds to support their business venture. The good news is, there are pools of money which are both available and accessible. Here are 8 methods and sources which grant funding:
1.Show commitment: invest your money
Invest your money first, show that you are serious, committed and believe in your business plan. Investing your own money will show commitment and determination to succeed in your startup.
2. Join a startup programme
Join an accelerator or a mentoring program, you will have access to valuable tools, resources, contacts and expertise. These can help you not only to build a strong ‘fundable’ business model, but also to present your startup in a favourable position to receive funding.
3. Spread your idea and seek for investors: Crowdfund
Prepare and launch a well structured crowdfunding campaign. It will allow your startup to raise capital in exchange for equity and achieve more financial freedom. Crowdfunding campaigns, if used correctly, can also act as a meaningful marketing tool to impress and engage new users. Kickstarter, Indiegogog, GoFundMe and Start Engine, just to name a few popular crowdfunding platforms.
4. Raise cash with pre-orders
Accepting pre-orders will allow you to plan your production, receive cash before you distribute your product. Kickstarter can be a good place to start.
5. Enter a pitch contest
Entering a pitch contest not only you can win a cash prize, but you can also receive valuable feedback, enquiries and establish mutually advantageous connections and long term business relationships.
6. Ask for help
Don’t be afraid to ask for help. Ask family, friends and even your employer to invest in your business in exchange for equity or future repayments. It doesn’t just have to be financing you can ask for help with. Office space, internet, utilities, computer, phones, and IT support will all be helpful when getting off the ground.
Remember, the faster you can finance your startup, the faster you can start building your model to establish a very successful, profitable and sustainable business. If you are currently looking for mentoring support or funding of up to £25k, apply today for a government-backed startup loan from Startup Direct here.