When you have a fantastic idea for a new venture, and you really want to get it off the ground, often the biggest hurdle can be having the money you need to launch. There are a number of ways you can seek funding or raise the money you need, and which is right for you will depend a lot on how much capital you already have, how much you need, and the nature of the business you want to start. Here are some approaches you could consider depending on different circumstances:
Raise Money by Trading and Investing
If you have a lot of the capital you need to get your business up and running, or your business idea doesn’t require a huge amount of funding but you’d like to have some extra money to give you more options for things like marketing, then you may be able to make the extra that you need by trading and investing money in the financial markets. Thanks to online trading platforms it is easier than ever to get started in doing this, and while you will have to learn the skills required it can be a good way to maximise the money you already have.
If you don’t have much, or any, of the capital you need, then crowdfunding can be a way to get your start-up launched. Crowdfunding is where you get ordinary people to invest money in your idea, in return for rewards or simply the knowledge they have helped a new venture. You do not have to repay the money, but you do have to honour any promises you made to your investors in terms of rewards.
Crowdfunding tends to work best for things that capture the imagination of investors, and so is usually used when a business idea revolves around bringing a new product to market. If you want to develop some software or market an invention, crowdfunding can work very well, however if you want to do something like start a consultancy it is harder to get people to invest in this way. Remember that money given to you as part of a crowdfunding campaign still counts as taxable income, so if you are in any doubt about what this would mean it is best to engage a good accounting and tax firm.
Seek Out Investors or Partners
Another good way to get funding for your business is by looking to venture capitalists or angel investors. They look for promising businesses with solid plans to invest in, and pitching to them could be a way to finance your start up. Equally, you could look to bring on board a partner who is willing to put up some of the money in return for a share in the business. You may even be able to get some investment from family or friends in return for a share of your company, so it is worth considering who you can approach.
Naturally, you can also consider business loans and other financial products, but these methods can be cheaper and better to work with.