Innovative ways to fund a new business
Are you hoping to launch a new business that will help you turn your dreams into reality? But do you find yourself lost when it comes to how you can go about getting the funding necessary to get your company off the ground? Well, rest assured that, in addition to traditional business loans, there are a few innovative ways that you can go about funding a new business, and a few of them are listed below.
Seek Out Small Business Loan Providers
You don’t have to rely upon banks to get the business loan that you need. Instead, you could seek out other small business loan providers, such as Kabbage. These loan providers are in the business of helping entrepreneurs get access to the money that they need quickly. So, if you are hoping to purchase inventory, hire employees, or anything in between, you could apply for a line of credit from the right small business loan provider. And the best part is that you could skip the arduous loan application process that you’d have to go through when applying for a traditional bank loan.
Find an Angel Investor
An angel investor is an individual who is always searching for the next great business idea that they could invest their money in. Many of today’s biggest brands were actually funded initially by angel investors, who are willing to give you the money that you need to get your business up and running or take it to the next level. In return, however, you do have to let the angel investor have a share of equity in your company.
Crowdfunding online isn’t just for creative projects, non-profits, and student projects; instead, smart entrepreneurs have also started using it to get their company and/or their products off the ground. You basically use the Internet to connect with people from around the world who would be interested in what you have to offer. Building your page on one of the many crowdfunding platforms is easy, too. You could give all of the background information on your brand that you need to provide in order to entice people to donate, and you could even offer perks for various donation amounts, further encouraging people to send you money.
If you’ve come up with a really interesting and unique product but you don’t have the money to actually produce it, you could use pre-sales to get the money that you need to launch your business, produce your products, and start generating profits. By offering the product for purchase during a pre-sale, you could produce only the amount that was actually sold, and that could help you save money. But just keep in mind that, if you do collect pre-sale orders, you’ll need to deliver on your promise or give the money back to your buyers.
With the strategies above, you might be able to fund your new business surprisingly easily. Keep in mind that you could use more than one of the options above as well, so you don’t have to rely solely upon one tactic to get the money that you need to launch your new venture.