When you finally resign from your nine to five full time job to embark on a self employed existence, the chances are you feel a mix of emotions: excitement, fear, nervousness. These are all totally normal feelings and will come and go depending on what your new, unpredictable days have in store. The most important aspect to your new business launch will be funding. You might be tempted to head to the bank, present a pitch for funding and secure a business loan. However, this isn’t your only option. Take a look at these alternative funding avenues down which you might wish to travel.
Business Angel
If you are in an industry rife with business angels, then it might be a sound idea to tap into their experience. While they sound cherub-like, business angels are hard working, ultra-talented individuals with exceptional business acumen. If you are lucky enough to get a meeting with a business angel, it’s vital that you pitch knowing your stuff inside out. You need to know your financial forecasting, you need to present the results of your market research, and you must tell them what is in it for them. What return can you guarantee them? After all, they will be parting with their own cash.
If you do secure funding from a business angel, they are investing in you as much as your business idea. Tap into their contacts list, utilize their knowledge and advice, and always keep them in the loop of your business developments.
Crowdfunding
A newer source of funding is the idea of pitching your brand, concept, and business online for any amateur investor to invest in. For minimal amounts of investment, you could end up with investors from all over the world, simply because you made your pitch on a crowdfunding platform. You won’t have to part with shares or promise a return, but you can sweeten the deal with a discount on products. Crowdfunding has global reach and can enhance your online presence immeasurably.
Self-Fund
Alongside pitching to others for funding, you must be willing to put some of your own cold hard cash into your business. Don’t expect any business angel to come on board if you still have a swanky sports car on the drive, and you haven’t parted with any money. While you may need to rely on a small dollar loan to begin with, once your business is flourishing, you can reinvest your profits and make your cash flow more buoyant. Initially, you will have to pump some of your own cash into your ideas. This shows potential investors that you are serious about your business plan.
Being an entrepreneur isn’t for the fainthearted. There will be many obstacles in your way when you first launch your startup. The competition will be fierce, you will need to find an untapped market and bring something new to your target customers. However, by following this guide and securing your funding, you can be in a stronger position to see your business thrive.
