Most people don’t know this, but I my day job involves working with VC firms and startups. I basically get to hear pitches every day all day. And while most people think that getting on Shark Tank or finding an investor will help them, the reality is that as incredible as your business idea may be, without the backing of significant funds, getting your business off the ground will be difficult. The reality is that a new business requires cash and there is currently good support for businesses and start-ups, largely through the realisation that small businesses are fundamental to a strong economy.
Tip 1. Explore funding options
While it’s good to know that the importance of small business is recognised, you really want to know how to fund your business. Many different funding options exist and it’s worth exploring them to understand which of these are the most lucrative.
Not all of the funds from your business need to come from one source and you may want to consider finance in the short and long term. As the professionals at STBLA know, a short term business loan can be an ideal solution to getting the business off the ground, with longer-term funding streams also in place.
Tip 2. Know your niche and seek funding related to this
There will almost certainly be something unique and special about your idea and the business you want to create. Don’t overlook the fact that there are particular grants and funding opportunities that exist for specific business owners. For example, grants may be offered for people residing in rural areas of for people facing particular life circumstances, such as single parents.
Ensure that you can clearly define your niche. In the pursuit of funding, offering a clear description of your niche market will interest investors and funds providers who want to know what distinguishes your business from others.
Tip 3. Apply for grants
If you are able to secure a grant for your business, congratulations! With a grant, money is provided to you (at no charge) to help or completely fund your start-up business.
Although finding a grant and completing the application process required is not always quick or completely straightforward, it is still important to try. You may be surprised at the grant possibilities which apply to you and your business.
Set aside time to complete your grant application in detail and with considered thought. Most grant applications require significant detail about every aspect of your business.
Tip 4. Be ready with business details if seeking a loan
Most prospective business owners seek some type of loan to finance their business. Of course, you need to carefully explore the range of possible options. In order to do this effectively, make sure you have as many details as possible about the business you wish to set up.
The details that you need to provide should include the full financial details of the business and account for how the loaned money will be used. If you have a good business plan in place, this should not be too difficult.
Tip 5. Look out for contests
Keep an eye out for contests that offer a financial reward in support of small business start-ups. While this is not a funding source that every business owner can rely on, businesses that win such competitions can certainly benefit.
When you are looking for funds to support your business start-up, explore your options and evaluate the possibilities. It’s worth looking at traditional and non-traditional funding options, as a blend of these may be the best funding solution for your situation.