Creativity and innovation, no matter how elusive they are, they do come to the fore when people want to set up a business of their own and are looking for alternatives to finance their venture. It is keeping that same principle in mind that you’ll find some prudent small business funding substitutes here, so that you can realize your dreams of owning a company.
Small business funding tips
Here are some of the ways that you can accumulate the necessary amount of seed capital for your startup:
For a lot of budding entrepreneurs, raising funds with the help of the angel investors is a favourite option. However, if you want to do the same, then you need to time your approach right and leverage the most appropriate contacts.In a way funds from friends and relatives have actually given birth to this breed of investors. You can build a good amount of trust by repaying the loan back to the angel investors along with the accrued interest. It is for you to ensure that nobody gets to own a controlling stake in your company just because he or she has lent you some money.
When collaborating with the angels or venture capitalists (VCs), you should keep the fact in mind that they’ll own a part of your business and that you have fiduciary responsibilities to fulfill towards them.
A lot of entrepreneurs and small business owners like you have come to realize that at the end of the day they might have to self-fund, that is better known as bootstrapping to float their own business.This you too may have to do for a considerable amount of time. There are lots of ways to achieve such a feat and one of them are your savings. Moreover, you can make good use of things like zero interest credit cards, personal assets, etc to finance your venture till the time formal funding options starts to trickle in. So, if you believe in yourself and in your vision, then having a nonchalant attitude towards any sort of failure will help you to go a long way to further your company’s growth.
Small business loan
Yes, its true that banks have tightened their purse and are following stringent lending norms to whatever few they are giving the loan money to. However, if you can’t up with any credit, then it may become tough for you to get a business loan.You need to research quite a lot to find out those companies who specialize in assisting budding entrepreneurs like you to get access to fast and affordable loans.
It must be noted that you need to have a good business plan, viable projections and some of your own funds, to convince the banks to approve your loan applications.
The fact is that small business loans can be a very good way to reduce the stress on your finances. In addition to that, debt financing will allow you to run your business on your own terms and not of the shareholders or the investors.