Even the smallest of the small businesses needs some sort of
investment to set off and succeed. The Internet might be a low-cost medium, but
even an online business requires sufficient funds for marketing and search
engine optimization purposes. Many entrepreneurs with brilliant ideas fail to
launch a business. Even those who do,
never manage to realize its true potential because they don’t have the capital
to invest. Money makes money, which means you need to have some money in order
to make more money.
If you are one of those entrepreneurs with a great business plan, and waiting for the right time when you will have the funds or capital to invest, then you should stop waiting and go for one of the following options to get the capital to launch your company right away:
Bank loan
Banks are of course the first resort for small businesses looking for a loan. The only problem is they are less likely to lend money for a start-up, as compared to an established enterprise. Still, you can visit different banks and discuss your requirements.
Friends & Families
If you are looking to start a small business online, you usually will need significantly less amount of money as compared to starting a brick and mortar store. Searching out conventional loans from banks or venture capitalists sometimes is not necessary, especially if you’ve got someone affluent enough in your friend or family circle to invest. The biggest advantage is the convenience, as they will be lending the money on much easier conditions when compared to a bank or angel investors.
Angel Investors & Venture Capitalist
If you have the kind of idea or a prototype that you can sell to some of those “angel investors” or venture capitalist firms, you might be able to raise a big amount of money for your company, except that you will have a little less control on your business. They will be lending on tough conditions, but that’s the only way to find investment for a high risk start-up with lots of potential. You will have to do a lot of convincing though, since venture capitalists or angel investors are business savvy people who won’t put their money in a half-baked business plan.
Partnership
If you are looking to start a small business and you have got some savings to invest, but you’d like to have some more financing or someone else to share the risk, you can always look for a partner. There are different types of business partnerships, for example, general partnership or limited liability partnership. In case you are getting into a partnership, remember to discuss and include everything in the agreement, because partnerships can result in misunderstandings and disputes.
Government Funding
There are many government funded programs and grants for small businesses in different parts of the world, especially in particular sectors like IT or agriculture (depending on the government policies). You can always check with your local small business authorities, and see if there’s a financing program available.
Bio:
Natasha Mesty is a business and finance student. Starting your own business requires lots of planning and hard work in the beginning, but this planning and hard work can pay off in spades once your company starts to earn.
