How To Fund A Small Business Start Up
Are you in looking for different ways to fund a startup business? Do you need feasible small business start up funding ideas? Well, you are not alone. A common question asked by virtually all prospective investor is ‘How to get capital to start a business?’ The truth is no one is ready to dash you funds just because your investment idea seems interesting or promising.
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Start up funding appears to be a major determinant when it comes to when and how an entrepreneur wants to launch his business. Although there are several creative ways to fund a startup, not all of them are practical in the real sense. No matter how beautiful your business idea is, without funding it may never see the light of the day not to talk of succeeding. Here are the best five sources of fund for small scale business and enterprises.
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How To Get Funding For a Startup Business
1. Exchange Services
You many not need huge monetary resources in financing a small business. Bartering your services is a way to get value that can be injected in the start up idea Advertising on your car in exchange for a small business website or getting free office space by offering to provide computer support systems are some of the best ways to raise capital for a startup.
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2. Crowd Source Funding
Many people have successfully generated small business start up funding through crowd-source funding websites on the internet. This is different from how investors fund start ups as the cash are many donations from people who appreciate the value you have added to them. In appreciation, most business owners give out their company’s branded shirts and other promotional items to thank these donors.
3. Start Up Business Loan and Grants
Small business start up funding is not an easy task for many people if they want to embark on it alone. This is why when we thinking about anything financing, what comes to the mind is the bank. There are some debt grants and government small business loans available in several countries like India. The only hindrance is how you will be able to survive the tedious lending process and period and still come out successful. Most micro-finance banks would rather give business loans to existing ventures willing to expand instead of financing new start ups whose risk they consider higher.
4. Venture Capitalist
These are investors whose primary interest is investing in new startups They offer plenty of money and supportive resources to start and grow small businesses. They only disadvantage is that these financiers scout for broad business ideas that are relatively stable which implies that a substantial amount human and financial has to be on ground before they can give out funding for start up businesses.
5. Internet Freelance Services
There are several freelance and micro job websites online where people get paid for rendering services using their skills From SEO services, graphic design; to article, proposal and business plan writing, freelance gurus make lots of money every week on freelance site like Fiverr, Elance, Seoclerk and others. Funds from freelance business is not only to pay bills as some determined people have successfully used such resources in financing business start ups.
I hope you have picked enough ideas on how to fund startup costs for a new small business. Funding a start up business may look impossible if you do not have money or assets to stand as collateral for loans. Are you struggling with financial commitments here and there? Don’t worry you can still get capital to finance your small start up. Be wise, you don’t have to rely on banks alone.