Best 11 Simple Funding Ideas to Help You Start Your Business
No doubt starting your own business has become a necessity in this modern era. But one of the problems that hinder people to start their business is funding.
Great innovations, ideas, and products don't see daylight because the people who carry them lack the funds to push them into operations. That's very sad and you wouldn't like to end up like that.
However, your story will be different and you will get enough funds to start your business. In this article, you will get to know the best 11 simple funding ideas to help you start your business.
Best 11 Simple Funding Ideas to Help You Start Your Business
1. Bootstrapping;
The first source of funding for your business should come from yourself. You can do this by raising funds from your savings or investment. It is believed that since these funds are raised by yourself, you are motivated to work extra hard to see that your hard-earned money doesn't go to waste.
2. Product Pre-Sale:
Most startups ask customers to pay for the products before actual production begins. Here, customers who are interested in the products make an advance payment. They are then assured of a specific date when they will receive the products. Using this strategy, funds can be raised easily by selling Minimum Viable Products (MVP) to potential customers.
3. Turn Your Assets into Cash;
These assets include items you own that are useful but may have no benefits to you or your business at that moment. It will surprise you how someone needs those items seriously for other purposes. Think about TV sets, a laptop, furniture, bicycle, vehicle, machine and equipment, land, building, and the likes. Sell those items and use the cash to fund your dream business.
4. Refine Your Social Capital to Financial Capital;
Your friends, colleagues, church members, and family members have the means to help you with the funds needed. They are your social capital. Indeed, some will not support you and belittle your ideas.
But this shouldn’t deter you from approaching them to pitch your ideas to them. There are genuine ones among them who will help you. Even if not the total amount, they can get you something better. Please don’t forget to be grateful to such individuals, you might need them again along your journey.
5. Consider Crowdfunding;
Here, a group of people willingly pledges to contribute some money to support your business idea. Each individual in the group decides the amount of money he can contribute to your business course. Most charities and non-profit organizations use this idea to raise funds for their goals. Consider that and find the nearest crowdfunding platform available.
6. Talk to Venture Capitalists;
These are people who will invest their money to become part of your business. Venture capitalists invest their money into startups that are committed to driving profits for the business. To earn funding from a venture capitalist, you should prepare your business proposals, adequately well when pitching.
7. Think About Angel Investors;
Unlike venture capitalists, these people invest their funds into your business without aiming at owning part of your business or getting a return on their investment. After giving their money to you, what most angel investors do is provide mentorship and guidance to the startup.
They are much interested in seeing the growth and the sustainability of your business. They are very few to come by so if you get one appreciate that.
8. Secure A Loan from Bank or Microfinance Company;
Banks and other financial institutions like microfinance companies can be another great way to get funds for your business. Most banks need collateral before they can grant you the loan. Microfinance and cooperative unions also require that you save some money with them for a while before giving you a loan.
If you are employed already, the best thing to do is to talk to your employer to approve a loan for you to start your business. Since your salary passes through the bank, it is easy for you to receive a loan to fund your business.
9. Participate in Government Programs that Give Startups Capital;
In a country where entrepreneurship is embraced, the government put in place some initiatives and intervention programs that support startups to raise funds to make their business dream real. It is up to you to find out the available funding programs that will suit your business goals.
10. Raise Funds by Winning Contests & Awards Schemes;
Get yourself and your team engaged in business contests and award schemes. Leading companies set business challenges for startups to get funded. To win this contest, you and your team should put in extra effort since it is a competition.
There are numerous successful businesses today that are beneficiaries of these award schemes and contests. Find out the latest business contests and challenges that you can participate in to meet your funding needs.
11. Engage in Business Incubation and Accelerators Funding Initiatives;
Some great and successful corporate entities believe in supporting and nurturing startups to become successful. With their top-notch incubation and acceleration programs, small businesses and startups usually get funding support.
Truth must be told, securing funding is another hard part of the entrepreneurship journey. But this shouldn't discourage you to pursue your dream. Keep on keeping on with the suitable funding ideas that will help you attain your funding goals. Wishing you all the best of luck!
I am looking forward to reading your comments and don't forget to share this post with your friends if you have enjoyed reading it.
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