Starting up your own business can be incredibly difficult. There is a huge amount of work involved and it isn’t easy work either. There are ways to make it easier though. Here are five easy ways to take out some of the headaches involved in getting the funding you need.
1) Government Grants
The government wants people to own and run small businesses. The boost to the economy more than offsets the cost of government grants for small businesses. If there is a way for you to get a grant then it is infinitely preferable to a loan because you don’t have to pay it back. The first step when trying to get funding for your business should always be trying to get as many grants as you can.
2) Friends and Family
Your friends and family are the best places to go if you need a small loan. They are less likely to charge high interest rates and will be more likely to give you time to get on your feet before asking for repayment. If you have friends or family with the capital to help you raise funding then they should be your port of call after applying for a grant.
3) A Bank Loan
Banks are willing to loan money to small businesses to help them get on their feet. They will require an in-depth business plan and need to recognize the possibility of success. While you will have to repay a lot more than lending from friends or family, banks are also only likely to lend to you if they think they will get their money back. If you are confident with your business idea then a bank loan is a good way to go for you.
4) Raise the Money Yourself
This way carries less risk than getting a loan. You don’t have to pay anything back if you raise the money yourself. Of course, there is always the crowdfunding option, if you go down the crowdfunding route you can gain huge amounts of money in a very short time. It also means that you can get customers right away if you offer services in return for funding. If your products or services are good enough then you will instantly have a large customer base that can help your business to be a success.
5) Find Investors
Finding investors can be a difficult and risky option. You can raise huge amounts of funding at very quick speeds but you will also be giving up part of your business. If you are willing to give up a small stake in your business in order to get the funding that you need then finding investors is the route that you should take. There are a number of ways to do this, either by approaching venture capital firms or going down the same route that Uber did and trying to get angel investors. Just remember to keep enough of a stake in your business so that it is still yours. You don’t want to do all of that hard work for someone else to reap the benefits.