How to get funding for startups from the government?
How to raise money for a business without a loan?
What do Angel investors look for?
How to raise funds for business?
These are the questions which came to my mind when I first thought about starting something on my own.
After having a dream of a successful business. We always get a break at the time of arranging money.
Because arranging finance is the most important part of any business.
Without initial finance and other emergency money resources, a business can not survive. For every start-up, business money matters a lot.
Do you know how to arrange money for a business startup?
There are many ways for resolving money issues but if you are still unaware of all helpful Government policies for startups.
Then you can also use some other ways to arrange that amount.
Read – 4 Best Marketing Strategies For Startups
A few tips to arrange Money for Business Startup
The first step in arranging money is to design a good business plan.
Because before arranging money for business this will help you to come to know about all money requirements.
Like how much money you need for the business to start, marketing, Other expenses and overall how much money you will need to run any business till the business can grow into a Profitable Enterprise.
Before starting any business you must build a business plan.
Because this business plan can be used as a proposal to be given to banks, Financial Institutions, and personal finance persons.
Having a good and effective business plan is a basic rule for you to raise money.
Because this provides all useful and specific information about you, your organization and your business’s future plans how will you repay the amount that you wish to Borrow?
Raising Money For Your Dream Business :
Depending on your business size there are two ways to arrange money
1. Borrow to your Known (Pre Startup Funding)
If your business is small and it can be a start in 4 figures and 5 figures income then you may borrow money from your friends, family, and relatives.
Many people started their businesses by borrowing money from friends and family.
It also depends on the nature of your business and the capital it requires.
If you are starting a home-based business which required only a few hundred dollars use your savings or ask your parents.
In favour, you can offer some equity or some interest on the money you are borrowing.
2. Use CrowdFunding Websites ( Rise Funding For Startup Ideas)
Use Crowdfunding for arranging money for your startup. The Internet has more power and reaches than any other communication system.
Use the power of the Internet and rise the money you need for your dream startup.
Crowdfunding sites like Gofundme, Indiegogo, and SeedInvest, are very popular and help new entrepreneurs represent their Ideas or Passion in front of millions of audiences.
3. Get a Loan from any Bank. ( Rise Money For Startups From Banks)
But if you wish to start a big enterprise and it required big capital then you must contact any local bank and Financial Institutes.
As we all know business start-up loans in which bank offers loan for starting a business at an affordable rate of interest.
The advantages of borrowing a loan are, that you can make a plan for repayments and also you can choose a term of years for repaying the amount.
If you are already having a business and you wish to increase it then apply for a business loan.
Just contact your local bank and ask about the loan application system.
4. Angel Investors. (Arrange Money For Business Startup)
Pitch your business plan to Angel Investors. These Angels provide capital for a business start-up in exchange for convertible debt or ownership equity.
You Can find Angel Investors on sites like Angel list.
We all know that many of the biggest tech companies today, like Google and Yahoo, were funded by Angel Investors once.
If you are also looking for a way to raise money for a business startup that already shows signs of growth Angel investors are a favourable option.
5. Govt. Small Business Administration (SBA)
Every year Government grants some funds for helping startups and businesses.
Find out about these Government programs if you’re asking yourself how to raise funds for business growth.
Being Government funded grants these programs become so much more competitive.
However, here the interest rates are slightly higher than most of the banks.
Because a business might need additional funds to finance new equipment, to provide assistance with cash flow, or short-term finance to cover large orders or shortfalls in revenue.
Over the longer term, a business might need to borrow money to expand into franchises, acquire property, or replace equipment.
