When you set up any new business venture it’s vital to pour everything into it to ensure it gets its feet off the ground. Have you recently set up a new business? Are you seeking ways to spearhead it? Then read on. Here we bring you our top tips on how to fund your new venture in the most appropriate, fitting way for your business, to ensure it compensates your team, covers all overheads and ultimately helps your business to flourish.
Friends, family and acquaintances
The initial success of your new venture will rely heavily on word-of-mouth, so reach out to friends, family and acquaintances for support. Though in some instances this might mean requesting their time, advice or emotional support, in other cases it might refer to their capital support. As a business owner it is up to you who you approach and how you approach this.
Crowdfunding
The internet has changed many things, including how new businesses raise funds. Nowadays, start-ups turn to crowdfunding websites, including Kickstarter, Indigogo and Gofundme, to reach out to a huge, niche audience and gain funding. In addition to raising funds, crowdfunding websites also provide the opportunity to acquire people to test, utilise and help innovate your product or service. Many crowd funders are lucky enough to make thousands (even millions) from their campaigns, so it’s certainly an appropriate cause for consideration.
Angel Investors
Angel investors are affluent individuals willing to pour capital into your start-up. Also known as ‘angels’, or ‘seed investors,’ such individuals are seeking:
- Committed, passionate, enthusiastic entrepreneurs
- A unique market opportunity that offers large potential for growth
- A well-thought-out business plan and strategy
- Innovative use of technology, resources or intellectual property
- Appropriate valuations with reasonable terms, both short and long-term
Angel investors look for an entrepreneur that can clearly and confidently articulate their business pitch, provide a prototype or working model of their proposed product or service and find a strong early consumer base. Founders need to come across as knowledgeable, committed and passionate, while the investor must be convinced of the need for your product or service. Angel financing can take some time to find, but if you locate the right investor who is interested in your sector, your business will definitely benefit, and substantially too.
Private lenders
Private lenders are the ultimate funders, because entrepreneurs do not need to reach out to the government or alternative methods for funding access or assistance. There are countless private lenders out there seeking investment opportunities (check out My Business Funded), so do your research and find a lender who can quickly get your business off the ground so that you can focus more on selling and worry less about operational costs.
Closing thoughts
As is evident, there are plenty of ways to fund your new business, though it’s imperative to find a method that suits you and your specific financial circumstances. Arguably, receiving aid from private lenders is the most resourceful option available to entrepreneurs as this enables them to get started the right way while offering minimal risk. That being said, the internet has opened up plenty of avenues when it comes to seeking business funding, so keep an open mind and find what works best for you.
Here at 8 Ways we’re all about assisting new businesses with getting their feet off the ground and achieving immeasurable success! If you’re a business in need of support, look no further. 8 Ways is a leading digital agency offering 360 degree services and solutions designed for every business requirement. Interested to learn more? Then get in touch with a member of our team and we’ll take care of your needs for you.
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