When I first started in business I was fortunate to have a good friend called Blake Rubin who had already found some success in his own business ventures. I cannot tell you how many times I would call him late at night for advice and it was thanks to his help that I was able to become successful in business. I understand that not everyone has the chance to find someone who can help them out in the same way that he did for me so I wanted to write some articles which can help those who are new in business to overcome some of the obstacles which the industry can present. Today we are going to take a look at how to secure funding for your new business, and where you can get it.
The first place to start when it comes to getting funding for your business is the banks, this is an approach which has worked for thousands of businesses over the years and it is still a great option. The beauty of getting a bank loan for your business is that you will be offered very agreeable terms and also they will dedicate a member of their business team to your company to ensure that you get all of the help that you need. Remember that it is in the bank’s best interests that you are successful as this means that not only will they be able to get their money back but also that you will use them in the future, a great incentive for any bank. Make sure that you have a sound business model as well as some collateral to put up against your loan before you pitch to the bank.
Angel investors are rich individuals or funds which specialize in investing in start ups, with just a quick search online you will be able to find people in your industry looking to invest and if you can convince them that your idea has what it takes to be a success then you can negotiate terms with them for their investment and tutelage, usually in exchange for percentage of your company. In order to secure investment from someone like this, you need to ensure that you can present the best possible case for your business and how you will make it successful, make sure that you know your figures and have a solid plan in place for the future.
There are some grants available out there from private funds or government agencies which are designed to help start ups get off the ground. These funds will not be able to help you with all of the funding that is required but they can go a long way to helping you secure the necessary money which you need in order to get your business up and running. Have a check online to see what funding is available in your local area that is used specifically for start ups.