Are you a new entrepreneur? Do you need ideas on how to raise funds for your new business? Here are some basic ideas that almost all entrepreneurs use to grow their business.
start
The best way to build a company is without the help of any financing. And it is also possible. Bootstrapping basically means building a company with the combination of some personal savings and money borrowed from family and friends. Some of the smart founders make a lot of money back by starting their company in countries where the cost of living is comparatively low, like Chile or Vietnam. Also, with the help of government grants, they can easily grow until the returns start coming. Some crowdfunding platforms encourage cash donations from the public in exchange for early access to the company’s products. This has made it easier for founders to raise capital without giving up valuable capital.
equity financing
If startup is not a likely option for the founders, then they may create a stake in the company for investment purposes. Whereas risking rich companies is better for startups that are cash intensive and aim to grow quickly. Not forgetting that there are many other stock options for organizers with various business ideas. New founders should try to put their company in an accelerator. They have a two to three month program that is basically designed to help startups work in the early stages of development. This program also helps you find potential investors at the end of the program. Accelerators have also launched some success stories, whose organizers have received valuable funding and mentoring from some of the qualified entrepreneurs in exchange for a 7% to 10% stake in their businesses.
debt financing
It is not advisable for a young startup to resort to debt financing in its early stage. It must be something like a last option. But in some cases, a small amount of cash is required as soon as possible. In these cases, it makes sense for the company to get an old, stable loan and save itself the trouble of finding an investor. In such cases, it is advisable to check whether the business is eligible for government-assisted loans. Such loans usually have a promising interest rate and flexible payment plans.
Therefore, regardless of the route an entrepreneur chooses to obtain financial aid, it is important that they take the time to wisely consider the objectives of the startup and how the financing strategy adopted will help them achieve it.
