Launching your startup can be an exciting yet daunting time. You may have already waved goodbye to your full time job, your steady wage and your promotion prospects in an effort to commit yourself full time to your newly self employed venture. Being an entrepreneur means taking on more responsibility and having to complete a wider range of tasks. The most important things you need to address when you decide to take the entrepreneurial plunge is your business funding.
As a business owner you need to consider the sorts of funding routes you want to explore. You also need to work out carefully how much money you need to get your startup launched and where you are going to allocate any cash you secure. You cannot ask for investment with nothing more than a random guess as to how much money you require. You need to have a plan for every penny you are asking for. Take a look at these three potential investment options that you should consider when trying to secure funding for your business.
Bank Business Loan
Securing a business loan from your bank is probably the most traditional and common way to secure funding for a new business. You simply make an appointment with the relevant person and head to your local branch. Here, you should be presenting your business plan and making a pitch to show off just how profitable your business could be. To grab the bank manager’s attention, you should launch your ideas in a creative way using Beautiful.AI. This will engage him or her, and make your business plans more visual. This can enthuse your audience more and inspire them with your words.
Your bank manager will be looking at the cold hard figures of your business plan and little else. He or she will want to know that you are good for the cash, that you are a responsible borrower and that you’ve never forfeited on a payment before. They will carry out a credit check and will want to know that you are committed to your venture. All a bank is worried about is getting their money back with the appropriate interest on top.
If your more keen to have an investor on board that will take a more hands on approach to your startup and their investment, then a business angel could be who you are looking for. These investors actually put their own hard earned cash into small startups that require cash injections. They are always on the look out for potential money making ventures from within their own fields. Business angels are professionals with decades of experience. They are experts within their industry sector and they are keen to spread their knowledge and help other like minded individuals succeed. However, they also want to find sound investments to help them turn a profit and make more money.
The excellent aspect of securing business angel investment is that you gain a font of knowledge and a book of ready made contacts as well as the cash you need. This can be invaluable for a startup that needs to find its feet within a sector.
Pitching to a business angel is more difficult, as they will scrutinize your figures to the nth degree. They will interrogate you to ensure that you have the business acumen to lead a startup and they will want to make sure that you know your gross from your net. Ensure that you can explain your financial forecasting for the next three years and endeavor to engage a business angel with your passion and enthusiasm. A business angel will invest in your company if you pitch them an idea that will make them money.
The most modern and millennial way of securing investment for your business is via crowdfunding. By pitching online, you could secure thousands of amateur investors with a minimal stake in your startup. This can enhance your global presence and can give you greater visibility in the worldwide markets. You will have a whole legion of followers willing your company to do well. While you might not secure hundreds of thousands of dollars by crowdfunding, it’s a great way of getting your brand and company noticed.
Being an entrepreneur is tough at the best of times. The first few months will be the toughest as you find your feet in your new role. However, secure your funding and get your cash flow buoyant and you stand every chance of business success.