So you've got that next billion-dollar idea? Where do you start? How do you get funded?
While having a great idea is essential for a startup business, it is paramount to have startup funding if this idea is ever going to become a reality. But where do you even find funding and how do you convince someone to support your venture?
Welcome to the world of startups! Even the most successful companies like Google and Amazon started from nothing, with the founders needing to convince others to invest money in them so they can grow.
We've collated the best avenues to pursue if you want to get funding for your startup, with tips on how to get your pitch to them over the line.
1. Those that already know you
Don't underestimate the power of love. Your friends and family are a great place to start pitching for financial support, mostly because they are the most likely to truly believe in you and your vision. Best of all, they are likely to do so with more lenient stipulations compared to the bigger banks. However, this option can often get quite slippery, so put effort into ensuring that your personal relationships with them stay intact.
2. The bank
Banks offer small business loans for those that need some extra backing to get going. But, these loans are often challenging to get because the banks perceive the loans as risky. It is always worth it to at least talk to your bank to see what your options are, but you'll need to have a proven track record for any real shot at getting a bank loan across the line.
3. Ask the online community
Crowdfunding is an incredibly popular way in this day in age to not only get backers for your business but equally get people excited about what you are planning to launch! There is a range of platforms that allow you to get a crowdfunding campaign started and equally expand your network in the business world. But it is important to ensure that your crowdfunding campaign is manageable in terms of expectations and the number of backers you have.
4. Go for the big guys
Venture capitalists are often considered to be a much more risky route for small businesses but offer the chance to hit the jackpot with skyrocketing your idea to becoming a global phenomenon. Venture capitalists are some of the most experienced and well-versed businessmen and women in the world and know a good idea when they see one. So they are willing to invest in you if they truly believe it can become a profitable deal for them as well! Just make sure that you do your due diligence and have rational expectations for what could and could not happen.
5. Self-fund the idea
It is very normal for the founders to self-fund their idea. It is a responsible route that ensures you don't go over your head in debt and lets you remain in control and reap the maximum benefits if you do end up making a profit. While it does mean that you will likely have less capital to start out with, you will have more self-accountability and possibly push yourself to the next level of success.
Starting a business is an incredible feat, but luckily there are many options to finding ways to get financial backing. From asking those that love and support you to taking a chance with a professional investor, the sky is truly the limit to making your business a profitable and successful one! Just decide the best route towards getting funding for you!