Are you a new business looking for funding?
Content provided by a guest contributor.
Funding your new business is no child’s play. There are a number of different options available to both brand new businesses as well as existing businesses that require additional funds to explore new markets, expand across borders or expand on their value proposition. But having so many different options and trying to understand all the terms and conditions attached to each option can be overwhelming. Unless you have managed to make enough profit to create and maintain a business savings account, you are likely to look to these alternative avenues for funding.
We’ve unpacked three popular business finance options for you to consider.
Let’s get the obvious out of the way. Go to the bank.
Most banks offer business finance and often you are afforded a large sum of credit to assist you. These financial institutions are well aware of the fact that they are a first point of call for most new or small business owners and so they’ve tailor-made packages for entrepreneurs. Although, it’s easier to be approved for business finance from the bank if you are already in existence and have the paperwork and operational history to prove it.
Start-ups, you keep reading.
Find your own “Dragon’s Den”
As a start-up entrepreneur you likely to need some help to really kickstart your business and get it off the ground. Afterall - while working in your spare room, garage or garden shed makes for a sweet read when you’re one day heralded as a success story - there’s only so much you can do before you will need to acquire some infrastructure or equipment and working premises. And, these are the things that investors usually assist with.
Pitching for investment sounds far more daunting than it is. But if you are armed with a solid elevator pitch, a true belief in your idea and a willingness to approach many different investors, then you will eventually receive the buy-in and money you need.
Consider many mini investors
Crowdfunding is raising capital and funding through many different investors to get to your desired amount. This practice often happens in the online space and through crowdfunding sites which offer the security of having vetted the investors and the innovators. It won’t work for every type of business but if Zack Danger Brown can raise $50 000 to make a potato salad, then you can definitely consider this as an option for your business venture too.
These are only three investment options to consider and a rather broad overview of each. The specifics of your business and current operational standpoint must be taken into account when deciding on the best avenue of acquiring investment. Speaking to a business advisor or financial expert is worthwhile too as they can explain the ins and outs of the payback terms. You don’t want to accept funding but in return have to give half your company away once it’s profitable.
*This article is provided by WesBank which assists business owners with acquiring business finance.