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Businesses don’t come cheap. In fact, even the ones with the smallest startup will take a considerable sum to get up and running. What this means is as a business owner, the first stage of the startup process is securing the funds that you need. A topic that you can find out more on in our post below.
Find an angel
It’s OK, we don’t mean the winged typed that you get in church. In fact, an angel, or angel investor as they are more commonly known, are people that will provide you will the majority of funding that you need to get your business off the ground. Think Dragons Den here.
Of course, such a fantastic opportunity rarely comes for free, and that means they will expect a share of your business. Something that could be worth a great deal of money should you achieve the success that you are aiming for.
In fact, when it comes to dealing with angel investors, it is essential to consider how much of your business you are prepared to surrender during the negotiations. After all, if you end up giving away a controlling share, you can run into all sorts of issues further down the line.
Consult your peers
Next, if you are looking to fund your business, you may do well to consult your peers. Of course, you can informally do this, but it’s often much safer to approach a peer to peer lending platform instead.
In fact, by doing so, you can often get more preferential rate than you would with a traditional financial organisation such as a bank. Your credit history may not be so crucial to the decision to grant you funding either.
Although, just like when you use any financial product, it is wise to make sure that you have a group grasp of the legal issues surrounding the situation before you go ahead.
Personal funding
Another possible option for funding your startup is to put up the money yourself. Yes, I know that unless you have had a recent windfall, or have been saving hard, it’s unlikely that you will have the entire sum needed to start up a business to hand.
There are other self-funded options to consider though. One in particular that can work well is to get a refinance home loan to cover the cost. Something that you can use comparison sites to check the eligibility and rates on.
Alternatively, why not liquidise other high-value assets such as cars, or even jewellery to provide the money you need to get your business off the ground. After all, by taking this latter option, it means you won’t need to go into debt at all.
Visit your bank
Finally, when it comes to raising the money to start your own business, one of the most common options is to approach a more traditional financial lender such as a bank or building society.
However, if you do choose this route, you must be prepared to pitch your idea, a coherent business plan, and accurate financial projections, as well as have a good credit rating. Something that may make this an unstable funding choice for many startup owners.