Raising money for your startup is not such an easy task, especially if you’re a first time entrepreneur. There are a few tips that you could keep in mind when venturing out for funds, such as the following.
- Seek a loan
Borrowing the money from a bank is often a little difficult, if you have been known to showcase a poor credit history. When you seek out for a loan, you might put your assets at risk, this is the first step in funding your company.
- Trade services for help
This is essentially bartering your skills for something that you require. If there is something that you are good at, then you can offer to trade some of that for something in return. You could negotiate free office space by volunteering to support computer systems for other office tenants. Another common example is to exchange equity for legal support.
- Try negotiating an advance
- Join a startup incubator
These organizations are really popular off late and are associated with large companies and universities. Free resources will be provided to startups and in some cases funding is provided as well. Consulting and office facilities are also present.
- Solicit Venture Capital investors
There are investors who invest money into qualified startups, generally those with a proven business model that is ready to scale. These venture capitalists look for big opportunities, so making something like this work would provide funds for startups.
- Apply to local angel investor groups
A lot of metropolitan areas have groups of individuals with a high net worth, willing to support startups. They are ready to invest millions of dollars in qualified startups. Finding them is simple and online platforms to support these are aplenty. Find ones that share an interest in your industry and passion.
- Start a crowd-funding campaign online
There are quite a few people who make online pledges via a campaign to request funds. Sites such as Kickstarter come in handy. You can pledge help for donations or request people to pre buy your product and so on.
- Request small business
These pertain to government funds that have been allocated to support new technologies and important causes. This includes education, social needs and medicine. There are multiple federal grant programs that do take up a considerable amount of time, but it doesn’t charge you any equity.
- Get help from family and friends
You can borrow funds from your family and friends. If they believe in your product, then you’re well on your way to finding the right investors. It would be a lot easier to rope in your family and friends, rather than a complete stranger.
These tips might just help you get the right funding for your startup.
