If you’re a young, aspiring entrepreneur, your head is probably buzzing with ideas. Your older colleagues aren’t jealous of you for no reason. You’re intelligent, highly motivated, and bursting with energy, while the rest have already grown too tired of the rat race. What is more, you have some excellent projects up your sleeve.
There’s only one problem, though. They’ve got more funds than they need, while you’re lacking some. However, raising money for your investments doesn’t have to be too hard. It’s actually quite feasible. Here are a few practical suggestions on how to make that happen.
1. Master Plan
Before you approach any of the potential sources we have in mind for you, make sure that you have already devised your plan to the tiniest details. A good presentation is everything. Regardless of the desired financial source, no one is going to follow your enthusiasm if you don’t have a clear plan on how exactly you are going to get their money’s worth. Do a thorough investigation of the market; explain how the business will work and how much profit can be expected. Also, it would be a good idea to have a plan B if your business encounters some hiccups. Everyone wishes to hear your project is a safe bet, so try to indulge them.
2. Friends and Family
This is perhaps the most obvious financial source. On the bright side, they probably won’t demand to receive any interest on the money they will be borrowing (but don’t take this for granted). On the other hand, you probably wouldn’t be reading this if you wished for them to participate in your business adventure in this way, so let’s continue.
3. Government Incentives
If you’re a young entrepreneur who’s just starting out, you probably aren’t too familiar with all the programs the government has in store. Indeed, there are always government grants or some other kind of support intended for new business owners. Even if it isn’t offering some financial encouragement for your kind of business at the moment, there still may be some help offered, such as lower taxes for new businesspeople. It’s definitely worth investigating.
Being your own boss certainly has its perks, but if you’re struggling to collect money for your business endeavours, perhaps you could consider sharing the business responsibilities with another visionary. A partnership can turn out to be exactly what you needed. You’ll be working with someone who is going to care as much as you do about your business. The keys to a successful partnership deal are well-defined terms. The contract should clearly state each partner’s duties to avoid any misunderstandings.
5. Venture Capitalist
Fortunately, there are lots of corporations out there with extra capital which are always on the lookout for new talents. Big companies are usually interested in helping new businesses and expanding their own. Naturally, your plan has to be flawless in order for them to respond positively to your appeal.
6. Angel Investors
As you have already heard, they can turn out to be real angels from the sky sent to your rescue. The limiting factor being they’re mostly interested in new technologies. Also, they tend to be more wary about their money since angel investors are usually individuals with limited funds.
If you’re unsure who to turn to for a loan, lender companies can solve your problem. They’re a loan specialist, which means the only thing you need to do is present them with your brilliant plan, and they will take it from there. What’s great about it is that they are the ones approaching potential investors, negotiating, and collecting offers. Next, you are contacted once they find the best rates for you. It’s an excellent option for beginner entrepreneurs who are not so skilled at negotiating.
This is a relatively new method and maybe it is just what you need. You can set up your own website, or turn to renowned sites which will collect the donations for you. Once you find your niche market and spark interest, who says they wouldn’t be interested in providing encouragement to the product or service they really need?
Finally, whichever option you opt for, don’t forget some golden rules of doing business. Make careful calculations about the loan amount. If you borrow more than you actually need, it can seriously backfire. As well as that, managing your accounts regularly is a must. If you do it right, there may be some tax reliefs as an extra source of income, too. Money will be pouring in after choosing one of our ideas, so you’d better know how to handle it in the best way possible.Opinions expressed here by Contributors are their own.