A Few Seamless Funding Options for Your Startup
You might have toiled years at your University to earn that degree in Business and Finance and to launch a startup that you have always dreamt of finally. You have a great team and a support system at your disposal, and your head is now bursting with novel ideas for your business. Therefore, all you have to do now is put the plan to action and set your business rolling, right? We beg to differ at this juncture. No matter how brilliant your ideas are and how dedicated a team you have to support you, launching a startup has several other important aspects that you need to consider.
One of the most important aspects of them all is that of arranging the funds. All your business ideas shall amount to nothing if you are unable to raise funds for the startup. You cannot depend on your bank balance and withdraw money whenever you want with the help of atm services to fund your business. Plus, unlike big businesses, startups seldom draw the attention of large investors, especially at their very nascent stage. Therefore, even before you plan on getting your ideas rolling, research the ways in which you can arrange for the funds for your startup. To make the job easy for you, we have an article that discusses some of the best startup funding options. Therefore, without further ado, let us look at these options and enlighten ourselves.
The first option that we would suggest you consider is that of angel financing. For the uninitiated, angel investors are those who are interested in investing in early-stage startups in return for an equity ownership interest. Angel financing has gained a lot of traction over the past few years and for good enough reasons. Success stories like those of Facebook and Uber have egged on these investors to show more interest in startups in exchange for sizable returns; and therefore, this might serve as one of the best funding options for you.
One of the best ways to raise funds for any kind of project is by using crowdfunding platforms. Crowdfunding platforms appeal to people from all walks of life to invest in different kinds of projects like movies, education, treatment and the like. Crowdfunding can help your company obtain the required funds while also promoting your goods and services. All you need to do to raise funds through crowdfunding is set up a profile on any of the crowdfunding platforms and have a compelling story that will spur people to donate to your cause. You can opt for reward-based crowdfunding programs as this does not require you to give away equity. All you need to offer in return is some discount on your products and services to those who donated.
Business Credit Cards for Small Businesses:
Small business credit cards also make for an excellent funding option for startups. A plethora of credit card companies is interested in catering to the small business market and offering multiple benefits like cash back, airline points, reward points, and other perks. You might want to leverage these benefits and raise funds for your startup as well. Some credit card companies demand that the card be tied up to the business owner’s personal credit history so that the owner can be held accountable and be financially obligated to the credit card company. However, before you choose this option, make sure that you have worked out the interest rates because some issuers charge a higher rate. Opt for the companies with a lower rate so that it is easy to manage your finances.
Loans for Small Businesses:
The final option that you can consider for your startup is that of small business loans. This type of loan can help you arrange for the required funds at one go and in the most seamless manner. You can choose from multiple traditional and alternative lenders, and the loan can help your business grow and fund new initiatives. A small business loan calculator will help you compute all your financial costs and find the right lender for you. However, small business loans are similar to the other kinds of loans in that you have to pay your debts on time to avoid legal and financial complications. Therefore, factor in all these aspects before you apply for a small business loan.
These were our picks for some of the best ways to fund your startup. Startups do not have endless access to funds, and neither can they afford to incur frequent losses. There are several areas where a startup might have to cut down and seek alternative ways to fund its growth. Therefore, be wise enough to make your decisions and take a step in the right direction.