Indeed, finding funds for start-up is one of the toughest parts always and nowadays it has become more competitive as well.
But if we talk positively, then we see there are two ulterior terms that lay behind every successful fundraising, which are,
Valuation & aspiration of the idea:
If your idea has lots of potential to make your shareholders millionaires and beat the industry’s hulks, then you can surely raise fund for your start-up. The investors always want to invest their money in hens who will lay golden eggs in near future.
Also, you must have an ultimate pitch deck of your business idea that will help you to raise fund easily.
The faces behind the startup:
Investors always look for prudent entrepreneurs who have great potential to make their start-up successful. Thus, the characteristics of entrepreneur play a vital in their startr-up journey.
Let come the topic, “best ways to get fund for your startup”
When the entrepreneurs want to start a business, it requires them to be frugal and start to save money because at that time they own are their first investor always.
But in the case, you don’t have pennies then you can pitch your idea to some of your credible friend or relatives. They can invest in your idea in the eager of good returns. And if you want, you can offer them a place of co-founder then they can help you financially.
These were prefunding stage when you found co-founders and funds to make your idea’s portfolio. But the game starts now, when you need certain good money to bootstrap your startup.
Here are the easiest options to get funding for your startup bushiness.
1). Go to Crowdsourcing your idea
Place a crowdsourcing campaign is an innovative way to fund your business in initial stage. Crowd funding is a centralized way for startups to reach out to the large audience in their niche to make their prototypes or ideas a reality.
Kickstarter, Indiegogo, and Gofundme are some of the best places to take a visit.
In this funding procedure, you have to register with these sites and put the description of your business idea that contain your financial strategy, your target audience and the need of funding etc. If the crowd-funders like your idea, then they will contact you.
Keep in mind, nowadays lots of startups or organization need funding as well so this is a bit competitive but if you’ve rock-solid business plan that can get attention easily then this is good enough for you.
The biggest pro of crowd funding is that you don’t only create a community near your product, but also acquire your first users to test, utilize, and help innovate what you are working toward.
2). Get online lending or Peer to Peer lending
Online lending is another convenient way to fund for your startup.
Investors find founders at online lending sites and then the founders pitch their idea to them. And if the investors understand the idea’s aspiration then he finances the money in lieu of interest.
Some of websites like OnDesk, Kabbage, and Lendbox provide this service to newbie entrepreneurs.
Basically, it’s also known as a type of loan and called p2p lending.
3). Find startup accelerators
Accelerators are a type of organization that has a fixed tenure and curriculum. These organizations organize a program for entrepreneurs, in which they provide seed funds and advisory support to startups.
There are some international accelerators like Y combinators, 500 Startups, Angelpad etc. They organize lots of fundraising programs and call entrepreneurs to pitch their business plan. And if they get attention on someone’s idea then they fund them.
Accelerators invest money in lieu of the stocks of the company as well.
4). Find Incubators
Incubators are also an organization but they don’t fund your business directly. They will provide you free resources to startup, including office spaces, internet connectivity, a team to work and other different and necessary support that extinguish your requirement.
These organizations want the stock percentage of your company in lieu of their services.
5). Go for Angel Investors
Most metropolitan areas have groups of certain individual millionaire who eager about invest in startups and willing to syndicate amounts up for deserving startups.
Mostly they guys invest a big amount in the lieu of the stock of company. But this is not easy to raise funding from angels because they are not ordinary guys they are also skilled entrepreneurs and business people so be prudent enough to convince them.
To convince them, you must have a rock-solid business plan that has lots of possibilities in near future.
6). Small business grants
In fact, the grants are government’s fund that allocated to support new technologies, entrepreneurship and other social needs. And if you’re US based newbie then grants.gov is the place where you can get fund for your startup.
In this case the procedure of funding is same as other ways. And there on you have to pitch first and convince them for funding as well.
7). Seek a loan or credit through business credit card
Seeking bank’s loan is the oldest way to get fund for startup. That is not bad when you can’t get appropriate money from other resources.
The only con of this way is too high interest that banks charge to you in lieu of money.
And funding through business credit card is one of the most readily available ways to finance a startup. But basically, this wouldn’t happen for a new business unless you have a good credit.
8). Thiel fellowship,
Peter Thiel is the founder and organizer of the Thiel fellowship. Indeed, Thiel fellowship is a program for newbie entrepreneurs who are college dropout and have most igniting and innovative idea and are below the age of 23 as well.
Selected entrepreneurs are granted with USD 1million for start their startup. For more information about thiel fellowship you should visit their official site thielfellowship.org.
After thoroughly considering all 8 sources above, that is clear the ways are extremely best to follow and lots of startrups had funded by these ways as well.
But obviously, there are lots of other ways to get funds for starting your business if you have a lot of urge for this. That’s why I encourage you to think seriously about certain ways that can fund you.
And of course, every alternative way has its own pros and cons thus find the way that is suitable for you.