Ways To Get The Startup Capital You Need
If you have dreams of quitting your 9 to 5 and starting your own business, you are probably aware the entire process from planning to opening the doors to your business can be very exciting. However, before jumping down the rabbit hole, you will need to have the startup capital necessary to get the business off of the ground. Fortunately, as a business owner there are several ways you can source the funding you need to start your business.
Small Business Loans (SBA)
Small Business Administration loans are self-explanatory. These loans are approved by a bank or other financial lender so you can have the funds needed to open your business. There is, however, one caveat when applying for this type of loan. You will have to provide the lender with collateral such as a house or other possession that has a high monetary value.
The lender will place a lien against your property in the event that you fail to pay the business loan back. The only silver lining is that if you cannot pay the loan back, you can declare bankruptcy to remove the debt. Even with the removal of the debt, it can remain on your credit file for up to a decade.
Another source for startup capital is starting a crowdfunding campaign. This is an ideal funding source for startup businesses that are selling products or services that are fun, innovative and technologically advanced. This type of funding will allow artists, business owners and inventors to get the cash they need to create their service or product.
You will need to set up a page for your campaign. On this page, you will need to explain your product or service and add your monetary goal under the description. The person who is in charge of the crowdfunding campaign page will set up different amounts of a money that an individual can contribute, and each amount will give them a certain reward.
In addition, if you exceed the goal, you may choose to give all of the contributors the opportunity to win additional discounts, giveaways, coupons, etc. You can research online for the top crowdfunding websites.
Sell The Idea
It does not matter what type of method you use to get the capital for your business, you will need to also create a business pitch. There are some things to keep in mind.
When you are promoting your business online, use hashtags. Hashtags will ensure that your message reaches those you are trying to reach.
Never SPAM or send out multiple posts. This smells of desperation and it may lead potential investors away from your company. Instead, post messages stating that you are interested in more formal meetings through in-person appointments or by phone.
Also, never focus on the fact that you do not have money. Investors, banks and potential crowd funders are well aware that you do not have funds to start your business.
Startup capital is essential for any new business, online or offline. The good news is that there are many options for entrepreneurs to choose from.