How to Get Startup Capital for Your Business or Project
Among the biggest hurdles faced by aspiring entrepreneurs and business owners is acquiring startup capital. Without capital, you won’t be able to turn your vision into a reality. But ever since the 2007-2008 housing market crash, banks have been reluctant to loan money. So, the big question is how to get startup capital to fund your business or project?
Rather than seeking a loan to fund your business, you could always save the money instead. Taking a second job and stashing the earnings away in a separate bank account could prove helpful in getting your business off the ground. Of course, this isn’t always an option, as some business ideas require substantial sums of money, in which case “saving” alone not yield enough.
We can’t talk about the different ways to fund a business without mentioning angel investors. Angels are unique in the sense that they bring more than just money to the table; they also bring expertise, experience, and professional connections. Angels are typically more willing to accept high-risk ventures than banks and other traditional lenders, making them an excellent choice for entrepreneurs in need of capital. Because it’s in their best interest to help you succeed, angels will work closely with you to turn your business into a success.
A more traditional approach for acquiring startup capital is to seek a deal with for venture capital. Venture capitalists are investors or investment groups who look to fund for businesses for a share of the company. Unlike angles, however, they usually choose larger businesses and projects that have a solid track record of success. If your business is still new, venture capitalists may not be a viable option.
Small Business Loans
Of course, you can always apply for a small business loan to fund your business or project, as well. The key to successfully acquiring a small business loan to create a detailed business plan that reveals how every dollar will be spent. A good business plan will greatly increase your chances of getting approved.
Crowdfunding has become an increasingly popular platform on which businesses can raise startup capital. By seeking capital from a large pool of investors, you’ll gain both money and exposure. According to an infographic published by Fundable, the average capital generated from a crowdfunding campaign is $7,000. However, it’s not uncommon for entrepreneurs to generate much more, with some campaigns yielding millions of dollars in capital.