usamasomy, May 19, 2020
Have an intriguing and potential business plan but don’t have financial support to shape it into reality? Need not to despair! Every business setup, initially has faced this situation.
But one got to start from somewhere right? It can be quite challenging at first to find the source for funding but with determination and good business plan, you can find some potential sources to fund your business. Here are some ways:
It's your business plan, who would be a better financer than yourself? Personal savings are a great way to fund your business. If you don’t have anything but personal savings to start from and the cash coming from the first sale with time, it has proven to be a successful strategy. There is some downside because it is a bit risky and poses most of the risk on the business owner. but it also provides full liberty to the owner, without having to depend on others.
2. Bank loans
Although banks don’t have a great reputation when it comes to loans. But it still can be considered as an option, particularly for those with enough colateral and good credit.
3. Government Funding programs.
In many countries, there are several government funding programs which provide loans for your business startup. You can get yourself registered and who knows it might become your financer!
4. Angel Investors
Those individuals who are willing to provide support to any business start up when most investors are not interested in funding them are called Angel Investors. If your business plan has potential then they won’t hesitate to invest in your business. Many successful startup CEOs are always willing to support people with innovative business ideas and also organize several competitions where anyone with a clear and organized business strategy can participate and grab the attention of these Angel Investors.
5. Other sources of income and Friends and family
Having a side job or a source of income can also be a good idea to invest in your business. Family and friends can also be considered as a funding option but with risking your personal relationships.