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Top five ways to fund your new entrepreneurial venture

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Running a business and being your own boss can be incredibly rewarding, but for the majority of ventures, it also requires capital. Unfortunately, it can be difficult to secure finance for new businesses, leaving many entrepreneurs searching for alternative means of funding.

If you’re in this dilemma, don’t worry not all is lost as there are many alternatives you can explore. Here are five top ways you can raise the money needed to start your business.

Crowdfund

This is an option that has become increasingly popular in recent years. The process is simple: choose a crowdfunding platform, write your pitch and include information about your business idea and what you would use the funds for, set a target and go. If you choose this option, make sure to research as some websites cater to particular projects. You’ll also need to be prepared to market your page, to increase the number of investors.

Angel Investors

These are investors who invest in start-ups in return for a stake in your business, not unlike Dragon’s Den. If you choose this option, you’ll find that angel investors can bring certain benefits to your new venture, such as industry experience and advice. However, do remember that any investors will not only expect to recoup their original investment, but also a percentage of future business earnings.

Peer-to-Peer

While it can be difficult to secure a start-up business loan, there are other alternatives if you are looking to secure credit. Rather than turning to lenders or high street banks, there are a number of websites that lend using a peer-to-peer scheme. These services connect investors – often wealthy individuals or larger businesses – with businesses, offering loans at competitive rates.

Sell Valuables

While not a viable option for all entrepreneurs, there may be some who have valuable assets they can sell in order. To raise funds for your new business venture you could consider selling your car, collectables, antiques, jewellery or high tech gadgets. This is a great option if you have items lying around but don’t sell anything you need or are sentimentally attached to, as you may regret it in the long-term.

Self-Fund

If you’ve considered all of your options, have nothing of value that you’d like to sell and are still unsure, another alternative is to self-fund. This may include taking on personal debt in the form of a credit card, extending or applying for an overdraft, selling investments or even a home-equity loan. Remember, before entering into any form of debt always assess your ability to meet repayments.

Have you used any other methods to raise money for your business? Share with us in the comments.

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