These are the all possible ways to raise money for business or startup. Before going to start a business proper investment or funding is the first checklist in the business plan shows how the importance of funding or investment in the business. These are the 5 possible ways and easy ways to raise money for your business. As an entrepreneur, you need to know these basics of business funding and this article shows clear views about all possible ways to fundraising.
The term which we hear mostly nowadays is crowdfunding. As a name itself, it’s a funding from the crowd. Yes, there are many crowdfunding platforms which raise funding for you with a minimum fee from your raised fund. Just you need a clear business idea and show them a how your idea works, and a sample product or work on the platform and attract fund from the crowd.
2. Angel Investors and Venture Capitalists
Angel Investors and venture capitalists are there to help if you have any innovative business idea and hunger to make a business success. Angel Investors invest the capital for startup or business ideas from scarp in return of ownership equity or convertible debt. Venture capitalists invest in small startups or proved business or service to make them expand. They can make huge money if the business works well. To attract Angel investors and venture capitalists you need to prove yourself by attending business meets, conferences, participating in startup challenges and impress them with your ideas and knowledge.
Also, Read- 105 Business Ideas to Start
3. Bank Loan
This is the very traditional and safest way to get a loan from the bank. The loan amount should depend on your assets, qualification and experience. You can get business loans with the higher amount of interest but it may risk your livelihood in case of any mishaps occur in your business as they will take your assets. Taking a bank loan is ideal for small business entrepreneurs.
4. Peer-to-Peer Lending
Lending from Peer-to-Peer network is same as crowdfunding, but here only interested lenders will lend you money in return of bigger interests. It is ideal for a short time lending purpose for urgent basis. If you keep this lending amount for a longer time period then you will end up paying interests. They are many peers to peer platforms on the internet which connects you to lenders. You can easily get a loan without any effort here just by saying business expansion.
5. Government Schemes and Loans
Yes, as its a startups saga everywhere, Government of many countries takes these steps to help young entrepreneurs by creating Startup Incubators, Zero Interest loans and many more Startup Schemes. Just fill an application within guidelines provided by them and enjoy the benefits like funding, Business Permissions, Tax benefits and more.
These are the five possible and easy ways to raise money for Business as an entrepreneur.
Also, Read- How to Reduce Business Cost