Have a great idea for a business, product or service but don’t have enough funds to kickstart it? There are many ways to acquire funding to give your idea that boost it needs to become reality, and here are three options that may be available for you and your business:
Why not try crowdfunding?
Crowdfunding combines ideas of crowdsourcing and microfinancing where various individuals give you and your business or project money as a show of support.
These usually allow non-profits, individual artists such as musicians and start-ups to raise money to begin their journey and over 600 crowdfunding platforms have emerged around the world in recent years.
Social media is of particular importance as these platforms are the perfect way to spread the news about your business idea and gain patrons.
Although it is at its infancy, crowdfunding is slowly becoming a viable way for entrepreneurs to raise capital. This is particularly effective as through crowdfunding, you and your business will have already built a following and a customer base once the initial stages have been achieved.
A great way to help start-ups find their footing in the industry, crowdfunding allows businesses and entrepreneurs to pitch their ideas to the public.
It is not only start-ups that can benefit from crowdfunding, there are many top real estate crowdfunding companies that can serve as an alternative source of funding for real estate projects.
These can also be done online and can be a great way for investors to take advantage of passive real estate investments.
Sponsorships are another alternative
Similar to investors, another way to fund your business in its early years is by seeking out corporate sponsors who may be interested in your business and are likely to be persuaded to invest in your company.
The rise in popularity of sponsorships can be attributed to the potential benefits and returns to the sponsor in comparison to traditional advertising.
There are many different sponsorship opportunities available for different areas such as small businesses, authors, events and self-help experts. If your business does not fall in any of these categories, you can always expand your business through various means in order to secure that sponsorship. This can be through taking up public speaking or writing a book related to your industry.
Writing an effective and detailed business plan is also the first step you need to undertake in your journey to acquire sponsorships. This will include your customer base, demographics, marketing plan and mission statement – but most importantly, how your sponsor can benefit from the association with your company.
Learn what you can about your sponsor and tailor your answers to suit their mission statement and goals. You can easily do this by browsing through their website and look up any related news articles on the company.
Research start-up schemes
Start-up schemes is another alternative way to fund your new business idea. These are usually schemes set up with specific goals to aid a start-up in certain sectors.
These usually come in the form of competitions and programs that may require you to submit an application that is essentially a business plan.
As with sponsorships, a well written and well thought out business plan will be your business’s first impression, and so you must take time to write and proofread this document.
Ensure that the figures you cite are accurate and remove any out of date market statistics.
There are many other ways to potentially fund your business idea, and these are merely a few. Whether you choose to apply for grants, set up a crowdfund or opt for sponsorships, it is best to know your business thoroughly and write up an effective and engaging business plan.