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The Essential Guide To Securing Funding For Your Startup

funding

If you are planning on launching your very own startup, the chances are that you are excited, nervous and panic-stricken at various times throughout the day. Waving goodbye to excellent promotion prospects, job security and office banter is hard enough, but not knowing when your next paycheck will arrive can cause worries.

However, transforming your business dream into a reality takes courage and determination. Many people have visions of becoming an entrepreneur but very few actually take the bold step to give it a go. Your startup will need funding. However, it can be difficult to know where to turn for cash. Take a look at this guide to help you secure funding for your startup.

The Bank

The most traditional method for business funding is to pay a visit to your bank manager. Suited and booted, you should know your figures, sums and business vision inside out, ready to seduce the bank manager and convince him to part with his cash. When you enter the bank, you should have your comprehensive business plan in your hand, ready for it to be heavily scrutinized. A bank needs to know that you are a responsible borrower and that you have mitigated risk within your plan.

Ensure that you have crunched your numbers and that you know your financial forecasting for at least the next two years. Make sure that you are passionate in your pitch. Inject a little personality into your words and show off your enthusiasm for your product or service. Demonstrate your flair and business acumen and create an excellent impression. On occasion, banks will deny your loan application and if this happens to you, don’t feel like your business plans are shattered. You simply need to take another approach.

Business Angels

If you want to go down another funding route, a business angel could be the ideal path to follow. These individuals are experts in their fields and love investing their own cash into small enterprises. They want to help upcoming entrepreneurs make their mark in their chosen sectors. If you can secure funding from a business angel, you will have an idea that is validated. They will be investing in you as much as your business plan. Rather than just a monetary investment, business angels will be on hand to give advice, help you network, and be a listening ear if you have any startup problems.

Crowdfunding

If you are looking for a more flexible and postmodern way to secure funding, it might be worth looking into crowdfunding. By pitching your product or service online, you can attract a global market who might be keen to stake a claim in your business. You can offer discounts, shares or a return in order to attract investment from the amateur armchair investor. While each investments might be small, if you can secure hundreds if not thousands of tiny investments, this can soon add up to a larger pot of funding.

If you are keen to take your first steps into the world of entrepreneurship, follow this guide to help secure funding for your startup.

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