No shocker here—most businesses get excited about starting and launching a new project idea. However, bringing that project to life is a common stumbling block you’ll face and must overcome as an entrepreneur or SME company owner. It’s really a challenge where to source additional funds for such an endeavour.
But on the bright side, you can read this blog post to find out the easiest ways of obtaining financial backing for your new business project and which type is right for you. Likewise, before we jump into that, let’s first discuss the various reasons why you struggle with business funding.
The Real Struggles of Funding A Business Project Idea
Investors want to see if your business project has potential before investing. So you must develop a solid, clear and attractive concept and show them that your project has wide appeal and can succeed.
Inappropriate Channels
Funding isn’t one-size-fits-all. If you seek financing from a channel that isn’t appropriate, chances are you won’t end up with the financing you need. That’s why weighing your options carefully and choosing what will work best is essential.
Presentation
Take note that if you fail to generously highlight your idea’s scalability or your financial projections aren’t detailed and well-researched, it could turn off an otherwise interested investor. So make your presentation or pitch compelling and attention-grabbing. In addition, you can also include the potential benefits of investing in your project.
Competition
Let’s face it. Competition in the business world is fierce. Getting funds is hard when so many others are vying for the same resources. Moreover, investors and even crowdfunding donors are also constantly on the lookout for new business ideas. But don’t give up hope!
All you need to do is make sure your business idea is unique and exciting, your business plan is well-drafted, and you can execute the project with your team. Demonstrate and provide convincing proof that your project is valuable and that investing in it won’t simply be a waste of money.
Secure the Cash: 6 Easiest Ways To Finance Your Business Project
Start with Bootstrapping
Also known as Self-funding, Bootstrapping means funding your project only with your resources. This can be your savings account, credit cards, and any home equity lines you may have.
In most cases, using your personal money instead of borrowing or raising is a great approach that gives your business a lot of strategic freedom. Here, you don’t rely on any outside investment, and you don’t have to be liable to any third party. Hence, the decision is yours, and you have complete control over your business. Likewise, if your project is of a bigger nature, it would be best to look for other outside financing options.
Consider Your Family, Relatives and Friends
It can never hurt to ask your family and relatives or tap into your closest friends for funds. In fact, this is usually a cost-effective approach as they are more likely to offer you money at a better rate than a bank or professional financier.
Thus, although persuading them to invest may be effortless, it’s still a must to have your professional business plan ready. This way, you can thoroughly explain your business project, what you plan on charging and the risks involved. In addition, you should also point out if you want to request a loan, a gift or a direct investment which indicates granting them a share of potential profits.
Use Online Fundraising Platforms
Here’s a new way of raising money that recently garnered publicity and popularity. With this method, you get funds from various people at the same time using a crowdfunding platform. You don’t need to be massively tech-savvy to launch a crowdfunding campaign, but you must have a knack for stimulating public interest and interacting with a vast crowdfunding landscape. That said, you must illustrate a compelling pitch and include details like your plan, structure, goals, profits expected at different growth stages of your project, the capital amount you want and why you need the funding.
Seek Angel Investors
Did you know that angel investors funded large and reputable companies like Yahoo, Google and Alibaba?
Angel investors are like your saviours, willing to take your project under their wing in exchange for a share of ownership in your business. Furthermore, they are usually wealthy and successful entrepreneurs, so in addition to financial resources, you can also access their experience and a highly developed network.
Get Venture Capitalists on Board
Finding a venture capitalist who believes in your potential to transform your project idea into a lucrative and successful venture is an excellent way of raising funds. However, the challenge lies in convincing them you’re worthy of their investment. That said, having a solid and compelling business plan is a must. Then, ensure that you also effectively convey your business project’s scalability.
Like Angel Investors, not only will you benefit from the financial support of VCs. You can also enjoy their mentorship as an extra dish.
Pursue Grants
Grants can be a valuable source of financing for a new business start-up, particularly if you work on innovative and socially beneficial projects. Non-profit organizations, governments and other institutions usually award this method of funding. Grants can provide your business with the initial capital you need to get your project off the ground. It also does not need to be repaid like a loan.
To boil down, here are the six options for easy funding of your project
1) Start with Bootstrapping
2) Consider Your Family, Relatives and Friends
3) Use Online Fundraising Platforms
4) Seek Angel Investors
5) Get Venture Capitalists on Board
6) Pursue Grants
Final Words
As discussed above, there are many sources of funding available. So evaluate your options carefully before making a decision. Thus, if you have an attractive business idea and you know how to develop a clear and compelling business plan, these financing options can be within your reach!
Get your business project off the ground and running! Join our affiliate program today so you can earn passive income for more funds.
Moolahmore is a powerful cash flow tool that gives you a clear visual view of your financial position based on accurate information. It also allows you to create in-depth financial data significant to secure your needed funding. Schedule a demo with us today!
