Whether you are planning to start a new business or to buy an existing business, inadequate funds have always been a major concern for first time entrepreneurs. Taking-off is probably the biggest struggle an entrepreneur has to face; with those who have saved up every penny to start a business, lack a unique business idea, but the majority have a viable business idea but the obstacle of insufficient funds blocks their way to entrepreneurship. Funding is not only the concern of aspiring business owners in fact it is a vital part of operating a business, you might need to invest in your business at any point either to expand or to sustain its status. There are a plenty of options available to provide financial support for your venture, you just need to explore and determine the one that suits you best. We have compiled a list of funding methods for you to look up to when your investment is not sufficient.
Friends and Family
The most common and tested method for fundraising to invest in a business is where you get financial help from your trusted family members or friends. It is easier to convince them with your business plan and there are high chances of them entrusting you with their money and be able to see your future through your vision.
Building a network and being able to attract angel investors to support your business venture can be tricky but effective. All you need is to have a transparent relationship based on trust, set clear goals and convey them your plan in the best possible manner. Investors usually seek a small fraction of return on their investment but they can be of prominent help to get your business going.
If you are not able to carry the burden of the financial strain, you can always involve a business partner to finance your business. Partnerships are of various types depending on the need of the company, if you wish to seek financial assistance only without any hindrance to your business operations, you may opt for a silent partner.
If you have a good business plan to back you, your funding can be secured by bank loans. However, they require a track record and might be able to help you only with a loan secured with assets. You can look for other schemes which provide funds to small businesses initiated by the government to support small business owners.
To be able to support your business for which you have a passion, you can generate income from a side-business which might not even require an investment. Many of these side businesses can be operated from home and do not require much equipment. Opt for a business where you can put your skills to use and pursue in your free time.
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Have a car which you do not use? Have extra space in your house which you can rent out? These are financing methods which you do not seem to realize and can help you greatly to proceed with your business. Think of the assets you own and can make money out of them.
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