It is one thing to come up with a viable business idea and quite another story to work on it and start a real business. Putting a business from down up can be quite a challenge, especially when you have limited funds. Youths particularly have financial issues when trying out their pilot projects and some boost is always welcomed. But even with the shortage of capital to start you off, you do not have to let your business idea to wash down the drain because there are a number of options through which you can get the funding that you need to get you on your feet.
Self-funding – It may seem impossible, but it is actually very possible for entrepreneurs to fund their startups. This can be through using personal debt or savings. If you have any assets to your name, you can also consider selling those to generate the cash you need for the business.
Cloud funding – Pitching business ideas via the internet have become very popular among entrepreneurs to get the funding they need. There are numerous groups that offer such opportunities where multiple investors interested in the business idea contribute the needed funds towards the business. Such groups, of course, have restrictions and you should be aware of such before pitching.
Small business lenders – There are lots of organizations that are always interested in lending to small businesses and through such loans you can get the financing you need to get your business off the ground. You may need to secure such a loan with some asset type and pay interest in a specified time frame.
Banks – Banks make business loans for small businesses available. This may also require some kind of security and a track record that gives the lender confidence in you. The terms will vary from one provider to another, so you can compare options to select the most suitable for your business.
Partners – You may not want to partner so soon into the business, but it is one of the easiest ways of getting funding for the business. Strategic partners add value to the business by aligning the needed resources and in some cases, they could prove to be good business advisers too. Your partner may choose to become part of the business team or not; just ensure the terms do favor you as well.
Angel investors – They are affluent individuals with the will to invest in businesses. The investors are now turning into investment groups so as to spread risk and to also pool research. You can use your local chamber of commerce to find out who is interested in funding new ideas and ventures or you can also conduct online searches to find out the same.
Family and friends – They are the people closest to you and may be willing to provide you with debt or equity funding that you need to get started. It may not be a good idea to sell part of the business to them and you must be careful how you go about it because if the idea fails it could be the beginning of ruined relationships and hurt feelings. Let them know of the risks so they are prepared for any kind of outcome.