13 Ways to Raise Money for your Business


Business mindset 
 Funding your business is almost always very difficult. This article is a quick overview of funding options. For  a more complete  discussion on fundraising options, and tools to help you organize and plan your fundraising efforts, and expert assistance, please consider reading  Steps to Generate a Money Making Ideas 

NOTE: While most of the information in this article applies to businesses all over the world, some of the information is based on facts for raising money in United State.

FIRST: KNOWING HOW MUCH MONEY YOU NEED TO RAISE

When you are raising money, it should usually be with some goal in mind. The goal can be to reach certain revenue milestones, profits or number of customers.

The goal  can even be to get to a point in your company growth from which you will be able to raise more money.

In order to reach your goal, you need to calculate how much money it would take to reach it.

That is how you can figure out how much money you need to raise, you can plan a fundraising strategy that makes the most of any combination of loans/grants/investment/donations in order to get to your funding goal.

For those who want to work and earn money from home, read this 
👇


SECOND: FUNDING FROM FRIENDS AND FAMILY

One of the simplest ways to raise money is to get any combinations of donations, loans or investment from friends and family while it is often not a good idea to do business with friends and family, it is by far the simplest way to raise small amounts of money (Under $100k) to start your business.. 

THIRD: FUNDING WITH DONATION

One of the ways to get donations other than from friends and family is to do a new type of fundraising called crowdfunding. It is essentially a way to get donations from friends, family and others who want to support your project.

As an additional resource, take a look at kickstarter.com or indiegogo.com or gofundme.com which are some of the leading crowdfunding platforms.

Currently their services is only available in United States, United Kingdom, and only a few other countries.

FOURTH: FUNDING WITH LOANS

If you cannot raise enough money from friends and family or donations, you can combine what you are able to raise via those means with taking out a business loan.

Do you passion to invest in Real estate, If yes then read this

 Education in Real Estate


Banks only lend to businesses that have been in business for some time. Non-bank loans tend to be also cater to business which have already been in business. Very few companies lend money to businesses which are in planning stages.

FIFTH: FUNDING BY GETTING AN INVESTMENT

Investment and investors come in many different types. Technology and growth investors tend to look for big markets, proven team, and traction which means that in nearly all cases your business has to already be in business and showing some progress.

There are other types of investors who invest in niches that they know very well like real estate, or other particular industries. Getting an investor to invest in your company is very difficult because for the most part, they make very few investments, but see very many companies and get to choose the top 5% of all companies they see.

 But again, investors and investment types differs very widely across different company types and business vertical so to get more precise information, potential of getting an investment needs to be examined on a case by case basis.

For more a out technology and growth investors, take a look at angelist.com which is the biggest available database of investors and the companies in which they invest.
 If your company fits the profile of the type of business they typically invest in, you can  make an account there for your business.

SIX: ALTERNATIVES TO FUNDING

As you can see raising money is not simple. If this is a major hurdle for you, you have two options:
1. Change your business idea to be a little bit simpler and not require so much money.
2. Start marketing to get your clients so that you can grow from revenue instead of outside funding.

We have marketing articles that helps you become a better marketer, which may be interesting for you to consider.

SEVEN: GRANTS

There are many government and non-government available grants. The problem with grants Is that in comparison to the number of people who would like to receive grants, there are very few grants available.

Additionally, most grant tend to be given out to nonprofits or to  already operational organizations. Additionally, the application process and the wait time is a big distraction from actually working on your actual business.

If you are based in United States, take a look at grants.gov for a list of possible grants and more general guidelines.

EIGHT: SETTNG REASONABLE EXPECTATIONS

Unfortunately, most companies never raise money, get loans, or grant. Additionally, most early stage business are simply not a fit to get bank loans, government grants, or investments from professional investors.

So keep in mind that when you are embarking on a fundraising campaign, you risk time and resources which can often equate to money spent, and could otherwise have been directed towards growing your business.

NINE: AVOID OR HOLD OFF FUNDING AS LONG AS POSSIBLE

As previously mentioned, focusing on raising money will take resources away from your efforts.

Those resources could have otherwise been used to improve products quality, marketing, sales, or any other task needed to grow the company.

What make sense for many businesses  is to try to grow as far as they can without raising money, and when the business can demonstrate growth, it will not only be simpler to raise  money, but in many cases that money will come at a cheaper cost to you in terms of efforts, or the equity you give up.

TEN: CAN YOU START YOUR BUSINESS BY NEEDING LESS MONEY?

If your business need a large amount of money to get started knowing that it is extremely difficult to raise large sums of money during the early stages of the business.

It may be a good alternative to consider a different kind of a strategy where the business is cheaper to start.

For example, instead of restaurant , it may be better to start with a food cart or truck. In case of complex website and online business ideas, it may be a better option to start with simpler ideas and work your way up.

ELEVEN: SELF FUNDING AS A FUNDING OPTION

If you can find an inexpensive strategy to get you business off the ground, self-funding becomes a viable option.

Some of the best things to do is to save money by working in the industry in which you are looking to start your business.

Doing that will allow you to get paid to learn the industry so that when you are ready to start your business, you have more money, experience and knowledge of the industry.

Of course putting your work on the line is a big risk. But It can help you to remain independent of needing outside money, and to focus purely on  running your businesss.

TWELVE: FUNDING FROM YOUR OWN REVENUE

One of the best ways to fund your company is through the revenue of the company, if you have a way to get revenue from clients, you can spend a part of that revenue trying to get more paying clients.

Getting paying client and learning how to get more and   more of them is precisely what can make your business sustainable.

It is very difficult for a new business to make itself profitable from revenue in the early stages, but if you can , it a great way to go.

THIRTEEN: RAISE MONEY FOR YOUR BUSINESS BY GETTING A JOB

Sometimes the best way to raise money for your business is by either having a full time job or a part time job. That way you don’t have to rely on anyone else and can have a steady income.


SEPARATE APP ABOUT MAKING MONEY
Due to thousand of questions over time about making money i recently released an article  How to make passive/active income with Face App.  i hope it proves to be helpful.

DID YOU FIND THIS HELPFUL?
If you found this helpful, please consider giving us a nice review on our facebook and also drop a comment.

We hope this article was helpful to you and we wish you much enjoyment and success in your venture

Share on Google Plus

About mitrobe

This is a short description in the author block about the author. You edit it by entering text in the "Biographical Info" field in the user admin panel.

0 Comments:

Post a Comment

WE WILL BE GLAD IF YOU COULD USE THE COMMENT BOX. THERE IS SOMETHING YOU NEED TO SAY ABOUT THIS ARTICLE!