4 Methods to Finance Your New Business Venture

StrategyDriven Starting Your Business Article |New Business Venture|4 Effective Ways to Finance Your Startup BusinessEveryone has entertained the notion of becoming their own boss at some point. However, some people have the drive and initiative to start their own business. According to experts, over 600,000 new businesses open their doors in the United States every single year. Some open up subsidiaries of businesses like a Starbucks or a Waffle House franchise. Majority of these new enterprises will be small businesses run by people just like you.

However, starting a new business doesn’t just require determination, it will also need plenty of capital.
Without hefty initial funding, your dreams of opening a new business will be over before they even begin. However, there are a few tried and tested methods you can use that will guarantee you have the money needed.

Below are four effective ways to get the financing you need to become a business owner.

1. Take Out Personal Loans

One of the riskiest but perhaps one of the most surefire way to get a lot of money in a short amount of time is by taking out personal loans. Unlike a business loan, which can be denied based on the potential profitability of the business and the preferences of the bank you’re asking, these loans depend solely on your financial capabilities. If you are in a great place regarding you finances, you could be in the position to ask for large loans or even negotiate with a mortgage lending company for the money you need. However, this carries a lot of risk for you. If your business can’t recoup the money in time, you may be deep in the red personally. Gage the risk and rewards of this method before committing to it so you don’t lose all your finances.

2. Apply for Business Grants

If you don’t want to take out a loan, you can instead petition to a financial organization or similar enterprise for financial aid. There are many organizations whose sole purpose is to give out financial assistance to business owners. Each organization will have different criteria. Some cater to different types of aspiring business owners, such as women or color.

Some only give financial assistance to specific business categories such as eco-friendly businesses. The trick is to find the right organization to submit your petition to. Thoroughly research the organization you’re trying to get a grant from so you can present the best case possible.

3. Find an Angel Investor

Getting accepted for a business grant can be difficult, especially since there could be hundreds or even thousands of proposals that these organizations have to process. If you’d rather make your case to someone more personally, you can try to appeal to an angel investor.

Unlike venture capitalists, who are more concerned in getting in the ground floor of a possibly massively successful business, angel investors provide money based on other reasons. They can be moved because of your struggles, delighted by the idea of your business, or any other reason under the sun. Angel investors also typically don’t expect their money back quickly and are content to be silent partners. Of course, not every angle investor is the same and you may have a different arrangement with each one you meet.

Make sure you have clear boundaries with an angel investor and go over every inch of paperwork with a fine-toothed comb. This will protect you and your investor from any possible confusion after you’ve secured the finances you need.

4. Crowdsource

The internet can be a great source of revenue, especially if you can gather enough people to do so. Crowdsourcing sites like Kickstarter, Go Fund Me and the like allow you to present your case to millions of users around the world. They can then pitch together to meet your financial goals. Of course, the patrons and people who donate to your crowdsourcing efforts will require something in exchange. This sites usually include goals and milestones.

Should people donate a certain amount, they can expect a gift or product in return for their patronage. This can be a little costly and should definitely be accounted for when you calculate the amount of money you’re going to ask. Crowdsourcing can also be very subjective, and you will have to make your business proposal more attractive than countless other enterprises on these platforms.

Your small business can be the first and biggest step to securing your financial future. However, making sure your fledgling enterprise gets funded can be a massively difficult undertaking. These tips can help you amass the money you need and put you on the path to becoming a boss on your own right.

Easy Ways To Raise Capital For Your New Venture

StrategyDriven Managing Your Finances Article |Raise Capital|Easy Ways To Raise Capital For Your New VentureAlmost three-quarters of new businesses and startups need a helping hand to get up and running, so if you are trying to figure out how to raise some much-needed capital, you are far from alone.

Sadly, money does not grow on trees – life and business would be so much easier if it did – but there are some ways to get the capital that you need to start up your new business venture without having to sell your soul. Let us take a look at some of them.

Launch a crowdfunding campaign

Crowdfunding is becoming an increasingly popular way of raising money, and that is because there are so many success stories with it. It is a case of having the right business idea and the right pitch – get those right and you will have hoards of people wanting to help you out financially.

Using a crowdfunding agency gives you the chance to connect to people with like-minded interests and knowledge that you may not otherwise be in touch with. It also allows you to get an idea of the level of interest in your product or service and what resonates with people who may be your target audience. It also gives you an opportunity to practise your pitch and your marketing campaign and tweak it for the future. Most importantly, it helps you raise the capital for your new venture.

Find an angel investor

The general definition of an angel investor is an accredited business person or individual with a net worth of more than $1 million, or an annual income exceeding $200,000. In most cases, they work alone, but at times will work alongside other angel investors to build up a fund.

An angel investor works by providing capital for the business start-up in return for convertible debt or ownership equity – imagine along the lines of Dragon Den. These are usually used when a traditional investor will not take the risk.

Ask family and friends

Many people turn to family and trusted friends when they are trying to raise the money to launch a new business venture. According to the Global Entrepreneurship Monitor, 5% of US adults have invested in a company started by someone they know. It is a tricky one though because it relies on a huge amount of trust and faith. You need to treat it like any other formal business transaction – draw up legal contracts with clear rules on how the money should be paid back, the time frame and what will happen in the case of late or missed payments. Be aware that it a risky way of getting capital, as if things do not work out as you hoped and you find yourself unable to pay the money back, it can irreparably damage your relationship.

Raising money to start your new business venture does not have to involve countless trips to that bank and meetings. It can be much more straightforward than that. The key is to have a solid business idea and a business plan to go with it.

The Top Strategies to Fast Track Your Business Growth

StrategyDriven Managing Your Business Article |Fast Track Business Growth|The Top Strategies to Fast Track Your Business GrowthAs a business leader or entrepreneur, it is likely that you are impatient to see progress in scaling up your business from a small company to a large corporation. To make sure that you are able to become one of the bigger market giants across the world, this guide will detail some of the best strategies that you can use to fast track your business growth and expansion.

1.Expanding into International Markets

International markets are the best way to make business boom and multiply your revenue quickly. By venturing into international markets, you will easily be able to connect with a much wider audience, meaning you will be giving many more people the opportunity to invest in your company.

However, it can be difficult to decide which overseas market you should consider expanding into, with factors such as cost, tax incentives, and their talent pools all coming under scrutiny. For those looking to expand in 2020, you should invest in Turkey due to its status as a manufacturing center that can provide you with low costs and beneficial government-backed incentives.

2. Combining Online and Physical Stores

Although most business leaders are flocking online to follow the latest trends, savvy executives know that a combination of digital and brick-and-mortar stores is the best way to grow their companies fast. This is because a combination of both methods widens the net, allowing your company to be accessible to a wider range of shoppers who all have different preferences to the way that they purchase products. This is also important if you are focusing on expanding in a local community or in a country whose digital infrastructure is not as extensive as within the USA.

3. Become an Exciting Investment Opportunity

Although you might believe that fast business growth relies on your company’s investments only, you also need to make sure that your business is an attractive business proposition. By appealing to angel investors, you will be able to get the funding that you need to grow quickly, by offering a more extensive range of products and services, employing more talent and expanding your premises across the country and beyond. This will prevent you from having to garner funding slowly through cutting costs and a gently increasing customer revenue.

4. Create a Partnership or Franchise Your Business

One of the quickest and most effective strategies for business growth that every owner should be aware of is to create a partnership with another person or company. By doing this, you will easily be able to pool your skills and share your individual successes. You might also consider merging with another company in order to easily absorb another’s success. You should also consider the advantages of franchising your business, which means that another company or individual can sell your products under their name. This allows you to connect with a wider proportion of your target customer base, while also enabling you to claim royalties on every sale.