The biggest hindrance in the road to establishing a successful business is the accumulation of funds. However, times are changing. More people are stepping into the brave world of entrepreneurship and more people are stepping up to help them. Banks are no longer are the only sources of financial aid nor do you need to replete your savings to get start a company. There are many new avenues to explore now.
Establish Your Niche
Over time, many independent organisations have emerged who are help particular sections of society. So if you are a single mom, or from a minority social group or planning to do something that will help others, you might find some specific institutions that might help. It is important to determine your niche before you decide to proceed. Your niche may be defined by you or the kind of industry you are planning to enter or the specific type of work you are planning to do. Do some research to find out which investors are interested in your line of work and have known to support works like yours in the past. Even if they are not ready to contribute to your project, they are likely to know someone who will.
Moreover, pre-determining your niche will help you reach out to the investors better as they will have an idea about the general line of work and just a few specifics will get the idea across.
‘Grant’ed
Grants are the best kind of financing option. You are given money free of charge and free of any bondage. You can put this money to the start-up of the company any way you want. However, like all good things in life, getting hold of a grant is extremely challenging. There are some select few industries and certain members of the society are allowed grant. Find the list of industries and potential entrepreneurs who are eligible for grants. Each country and often each state are likely to have a separate list. See if your business falls into any of the listed category. Remember, the procedure of acquiring a grant is often tedious and one needs to be persistent and thorough to succeed but if you manage to bag a grant, your financial burden will lessen considerably.
Discover Crowdfund
This is actually a very old concept, alive even in the Mozart and Beethoven times. Now with the dominance of the World Wide Web, the concept has a renewed spur. This kind of financing is best if your project is artistic or calls out to the interest of a specific genre. Kickstarters is a site that caters primarily to the artists of different backgrounds. Here, instead of a single prime patron, there are several mini patrons. These people invest in the project usually not for monetary benefit but for the love of the subject. These investors are often rewarded by tokens like a copy of the book they helped publish or the tickets to the movie they helped create.
Angel Investors
Yes, such a breed does exist. Some people have too much money and specific interests. If your project matches their interests, they might shower their good fortune on you. However, they might ask for a great chunk of your company in exchange. This might be a considerable blow to your freedom as well as future developments in the company. However, if you are okay with the arrangement, this might be a quick way to find investors. Many organisations around the world help connect the investor and the investee. All you need to knock off their socks and rake in the moolah!
Michael Evans is a passionate blogger and social media analyst. He is currently associated with KSA Cyprus Company.