Getting Ahead in the Startup Game
There are many different ways to get ahead of the startup game by getting the funding you need. One that is used often is asking family or friends to borrow money to start the funding of your company.
They most likely believe in your vision more than a bank. Beware that it can also cost you friends and sever ties with family if not done properly. In this day an age crowdfunding is a good platform to use. There are many different companies and even more projects to be funded.
This means you must work harder to advertise your idea. Bootstrapping is another route people go. Using your savings to fund your business could be the easiest way but if your business fails you will be stuck with the debt.
Options to Fund Your Startup
There are some interesting routes for your startup. There are newer ways and classic ways. There are even ways people might not even know about. Here are a few you could look into.
Local contests are an interesting route. We’ve all seen Shark Tank and while getting on that show isn’t really likely, there are smaller contests that aim to help local businesses strive. These local contests won’t cost anything and even if you’re not picked it can easily spread the word of your business.
Trading services is an interesting route that many small and large businesses use. Say you’re a writer and you need a web designer. Well, you know one and he might need a freelancer for something. You could exchange services and save money for both of you.
Traditional Routes to Fund Your Startup
With so many ways to get your startup off the ground, there are many classic options to look at. One of the main things to do before bringing your idea to an investor or bank is to have a detailed business plan already thought out. Without a business plan, no one will take you seriously and make sure your financial projections are realistic.
A local bank is a good place to start. The best bank to start with is your personal bank. You already have built a relationship with them so it will make it easier for them to want to work with you and provide you with the best small business loans.
Plus, if they do deny the small business loan you could always try to get a longer personal credit line with them. If used responsibly, you will be able to start your business with a credit card. Try not to only pay the minimum and don’t miss payments.
A microloan is like a small business loan but starts at $500. These are the loans banks refuse to waste their time with so you can get them from a microlender. These non-profits offer small loans with less documentation and more flexible criteria. They usually have higher interest than banks though.