Start-ups and small businesses that strive to soon to become global enterprises are facing unfavorable odds in the overly-competitive 21st-century market, where the competition is huge and everyone is fighting for their piece of the proverbial cake. Now, if you add the fact that not many new or small businesses make it into their second or thirds year, the challenges ahead become that much more difficult to overcome.
Specifically, it is the financial instability and uncertainty that drives many a new business venture into the ground, which is why obtaining adequate funding to guide you on the path to solvency and affluence from the get-go should be your no.1 priority. With that in mind, let’s take a look at five great ways to fund your small business and ensure long-term success in the industry.
Look for angel investors
There are some very rich people in this world, you know. And some of them are looking for ideas just like yours and entrepreneurs just like you to give their money to and help grow their business. Alas, this doesn’t mean that you can kiss all of your funding problems goodbye, as angel investors tend to be extremely picky when choosing their next big investment.
So much so, that a great idea alone won’t cut it – you’ll also need a meticulously-crafted business plan with concrete projections for the near and far future, as well as a sound roadmap on how to achieve your long-term goals. This is why you want to prepare your presentation extensively if you plan to land an angel investor in your industry. Other than that, finding these individuals or groups is easy enough with a simple Google search.
Try crowdfunding your business
Crowdfunding platforms are a dime a dozen, and while obtaining the necessary finances through public sponsorship is a viable option, you should keep in mind that only a handful of campaigns actually reach their funding goals. This is because 1) entrepreneurs fail to craft an emotional message, and 2) because there are literally thousands of other campaigns on the same platform trying to achieve the same thing.
This dire situation not only begs the need to start up a campaign on multiple crowdfunding platforms at the same time in order to attract different sponsorship opportunities, but also to craft an amazing campaign that will appeal to the audience on an emotional level. Only if you manage to combine value, relevance, quality, and the right emotions into a single message will you be able to stand out from the rest of the herd.
Take the safe route and get a loan
Arguably, taking out a business or personal loan from a trusted lender is the fastest way to secure financing. Don’t worry, the industry is extremely well regulated and you can take out unsecured business loans easily and without long-term trading history or security.
The entire process is simple and straightforward, and no matter the type of loan you opt for, you can repay it in due course per the agreement with your lender. This not only eliminates any risks associated with procuring funds through alternative sources, but it also allows you to immediately pour cash into your company. This is one of the fastest ways to direct finances towards growing your business and keeping the ship afloat.
Take on a partner and share the journey
Acquiring a strategic partner is another time-tested solution to various funding problems companies have been using since, well, probably when the first Egyptian farmer needed someone to find buyers for them. You too can be like the Egyptian farmer and bring a trusted partner into your company to share your expenses with, but also your spoils.
This person may or may not become a part of your company, and they can choose to be a part of your business behind the scenes, investing in various aspects of your company, but also influencing the decision making process to benefit themselves as well as the brand. Think carefully before bringing a partner into your kingdom, though, as oftentimes your values and aspirations will fail to align with theirs.
You can always try bootstrapping
Bootstrapping, however risky and however lengthy the process might be, is yet another viable option for small business funding many entrepreneurs opt for. The premise is simple: your business will fund itself through sales and client acquisition over time, with you as the visionary leader investing in growth and expansion carefully and strategically.
The key here is not only driving sales and landing high-paying clients, it’s also minimizing expenditure across the board. It is, therefore, a sound idea to invest in automation wherever you can in order to optimize payroll expenses, cut overheads, and reduce financial leaks in every department.
Small businesses and start-ups don’t have it easy in the overly-competitive market, no matter if you’re shooting for the local or global playing field. Nevertheless, you can secure funding for the time being and even years to come by implementing these tried-and-tested solutions and thus pave the road to long-term success in the industry.