Along with every entrepreneur journey to success, there comes a point where the choice is either to fund the business or watch your company collapse. Funding finance is really challenging, whether it’s for the startup, or for the capital to expand the business. When you have a proper business plan for your startup and you know how much funds you need, and where you will be using it, it is the time to start looking for the ways to finance your business. It is necessary for the entrepreneurs to know that the right way of financing your business can have a great impact on the direction of your business.
These are the 10 financing techniques to raise money for your business:
1. Attract an Angel Investor:
You can get an Angel Investment in your startup, who will not just invest in your startup but will also offer mentorship, advice and provide you access to their network of contacts.
This is a new way of funding a startup that has gained a lot of popularity lately. A good crowdfunding site can be an effective way to raise fund for a relatively low cost, creative business project.
3. Incubators and Accelerators:
Working with incubators and accelerators provides you a whole host of resources to watch which helps a business to grow and succeed. Incubator and Accelerator program is found almost in every major city, they assist hundred of startups every year.
4. Create a list of Investors:
Lot of time and hassle can be saved by focusing on initial efforts on the few investors who are most likely to be a good fit for your business. By the end of the process, you will be having a list of investors who will be most beneficial to meet with.
5. Reach out Mentors:
The process of raising money has its own set of issues. Raising money is a full-time job. Mentor has the experience to offer their guidance to help you reach out the investors who will be compatible with your vision.
6. Startup launch platforms:
There are specific platforms that will assist you to launch a business, including guidance on how to connect with investors.
7. Family and Friends:
One of the most common ways to finance a startup is hitting up family and friends. Put up a strong business plan in front of them. Since they know you, they must be knowing your drive and determination and might be willing to invest in your business.
8. Professional Social Networking Sites:
Beyond LinkedIn, there are number of professional social networking sites that can help you in connecting with all types of investors that are present globally across all industry specializations and business segments.
10. Venture Capital:
They are professionally managed funds who invest in businesses that have huge potential. These people are charged with investing the money of other people and have a responsibility to scale down risk as much as possible.