4 Actionable Tips for Funding Your Startup
BY: GARY J. WILKINSON ON MONDAY, MAY 14, 2018
Coming up with a startup business idea is hard enough, but that is one of the easiest decisions on the road to success. There are many steps but the most important step for the function of the company is finding a solid method of funding.
Funding is important and the more organized the plan for the business, the easier it is to get what is needed. So, figure out what you actually need. Once there is a strong and certain business plan that is needed to move forward, is to figure out what sort of funding is best for what you are working with.
It is important to make sure you have everything figured out before you jump into this. Create a detailed business plan and decide which kind of funding you are interested in, there are generally two types: funding that costs equity and funding that costs debt.
1. Business Credit Card
The first choice is probably the most common, borrowing. Borrowing money is the simplest option to generate funds. From bank loans to a business credit cards, borrowing is a valid one for anyone with decent credit or established assets. Credit cards are easy, simple, and practical.
If you visit Fundera it offers a list of the best rated business credit cards for businesses. There are many factors to consider and each card can have different attributes.
This may be helpful for picking a card. It can be a daunting task trying to pick which card is the best for a specific business. Fundera lists the 6 Best Business Credit Cards of 2018 with detailed distinctions like APR rate, cash back, travel miles, annual fees, bonuses, bonus points, what card is best for building credit and secure credit.
There are different categories that may help secure the proper choice, listed are several options best in their fields, the best card for travel miles, the best card for cash back rewards, the best card with 0% APR, the card that is the best for building credit, the best card for no credit and the best prepaid business card.
Next on the list for ways to make a money for a startup, is taking out a loan. Taking out a loan can range from easy to difficult but if you luck out and get one it can be beneficial. A business loan can be lent to a corporate entity, and not a singular person to allow anyone taking a risk with a new business venture to not be liable if the business fails. If the business ends up failing the owner would only have to liquidate. This does not involve personal finances and cuts out a lot of risk when creating a startup.
Current interest rates are low, and it is the perfect time to get into the loan game. A large loan taken out when rates are low can be very beneficial to keep you ahead of other businesses and yourself.
If you feel that a loan is right for you give your local bank a visit, weigh the options that are offered and make sure that you have a comprehensive business plan listing where you want to go and how to get there.
If you do not have the choice to borrow, or need more options, bartering might be the best solution for all or some of the necessities. Bartering refers to offering something you already have, like a skill or service and trading it for something they have that you need. Networking is a great way to find a enormous collection of people that you can use when you get into these situations, from information technology knowledge, accounting, legal advice to physical products.
Bartering can also lead to potential customers or potential free advertising. If someone you bartered with likes your work of concept with in your business, then it is likely that they would spread the word about it or in fact invest or utilize what the business offers themselves in a non-barter related scenario.
4. Rely on Buzz (networking and social media)
Last, the most unpredictable but highly rewarding method is by kick-starting a campaign. Whether it is advertising by way of a newspaper or using websites to earn donations this method allows you to stay relatively debt free.
There are many fundraising sites that allow you to describe the product or service and sell it before it is even up and running. It is a great way to generate buzz on what you are offering and get advertising and funding all in one swoop. Of course, main potential clients aware of their options is done through social media. Create a friendly and welcoming and up to date presence on social media. And it takes one great campaign to start a huge wave of interest. If there is any interest in the business, it is more likely that there may be an option to get paid in advance.
This is possible when there is a high demand for the product or service. Create an Instagram page for your business, give the world an accessible in depth look into your daily operations or the details of your product or service. The more interest, the more potential clients and more money. Social media is a great place to try out unique ideas and a simple photography can really get the word out there.
Creating and funding a startup, is a struggle but with the right knowledge and preparation it can be a lot easier, whether the company decides on getting a business credit card, a business loan, or you decided to barter, or get funding from social media or even all four, there are solid options that can better your chances of the business/idea staying afloat. Taking out a credit card, a loan bartering and social media presence and the four most actionable ways to fund your startup.
If you own a business, what are some tips you have found to secure the needed funding to startup your business? Share your thoughts in the comment below.
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