If you want your business to stand the test of time, you need to focus on setting up a stable financial foundation at the very beginning. Your business’ success won’t amount to much if it crumbles down on itself like the ancient Roman Empire. This is why careful research and planning is crucial for building a strong business infrastructure. One which is made to last.
Furthermore, you should be aware that you’re not starting a venture on your own. Indeed, this is rarely the case. More often than not you’ll receive help in various shapes and forms. Keep reading and you’ll understand exactly what I mean.
Prepare a business plan for investors.
Don’t tell me! Someone has already shared this advice with you online, right? What a shocker. However, what they probably didn’t tell you is the real reason behind the importance of a business plan. See, it’s not just about keeping yourself organised. It’s more about creating a blueprint, or a ‘treasure map’ if you will, for your potential investors.
Angel and venture capital investors are only interested in financing your business if they see potential for rapid growth, especially in the next five years. The reason being that most of them will invest very early on when the value of it is still pretty low, only to sell their shares afterwards once the price has gone up significantly. They don’t want to wait too long for this to happen.
This is why your business plan needs to be like a rundown of your specific goals and the milestones you’re planning to achieve in a certain time-frame, say five years. Doing so will most probably turn your business into a magnet for investors in no time.
Gather the support of your friends and family.
Friends and family aren’t just there for moral support. They can offer some financial assistance as well. Many first time entrepreneurs choose to ask their dear ones to be the main investors at first. This option, however, could very well be a recipe for disaster. There’s no guarantee that you’ll get their money back which can strain your relationship with them to say the least.
Hence, finding alternative methods of financing your business might be a sound idea. In the end, if you do opt for this approach, then at least treat them seriously as you would a real investor. Namely, show them the business plan you’ve created and outline your business idea to them. Show them the ways you can not only pay their money back, but also earn them an attractive profit.
Most importantly, be honest with them. Take the time to explain how you might also be losing their money, so they know exactly what they sign up for.
Refinance yourself with loans.
The most straightforward way of financing your business is by the use of loans. Especially in the case of easily accessible online loans which are much faster and more easily obtainable than your traditional banking loans. This is because they don’t have a long and complex application process as traditional loans do.
It takes just a few minutes to fill in your data and you can apply whenever and wherever you want, as long as you have an internet connection. In addition, the loan will be approved in about a day or two, so you won’t have sleepless nights or have to bite your nails for days until you get an answer.
Another important thing to remember is to use lower interest-rate loans to refinance yourself. This will help you pay off older loans you might have with much higher interest-rates.
If you’re new to the business scene, perhaps you haven’t heard much about crowdfunding yet. Over the past few years crowdfunding has been instrumental in financing some of the most successful startups that initially had no money. Oculus is one example.
Today Oculus is worth a few billion dollars, ever since Facebook acquired it in 2014. This is why platforms such as Kickstarter are an excellent way of gathering funds and support for your business. Public support can give you a lot of momentum to promote your business on the next level, drawing even more investors into the fray.
One thing to note though, is that you’ll need to step up your marketing, as well as content creation if you wish to rally a large enough audience. Try turning to more concrete blogging and social media marketing campaigns to improve your brand awareness and win the hearts of the people.
Brush up on some veteran experience.
You’re not the first nor the last entrepreneur out there, so use this to your advantage. Someone has already gone down your road, so why now follow them in their wake? With social media and the internet in general, this has never been simpler.
Find an influential entrepreneur who’s relevant for your business. Choose someone you admire and try to learn from their valuable experience. Additionally, you can even find someone to guide you in person, for example a successful local investor you might know. Let them mentor you the general ropes of the trade as well as the ins and outs of that business. They might even be the key to financing your business.
In conclusion, being an entrepreneur requires a lot of deal-making. Be ready to hassle the people you know, experts, investors and even the general public for their support. If you have a unique business idea worth exploring, you will succeed in financing your business.