Acquiring funds is the first hurdle you must deal with to start a business. There are many people with brilliant business ideas and plans, but they lack finances to get them started. Launching and operating an enterprise is not yet an achievement. You also need determination and focus. Statistics indicate that almost half of new businesses in the US make it to their fifth anniversary, and around 25% of these businesses see a decade. Although the chances of failing are higher when compared to success rates, here are some ways you may consider to secure money for your new enterprise.
- Try Crowdfunding
Crowdfunding is increasingly becoming popular for new businesses. The benefits of crowdfunding platforms are twofold – meaning you’ll acquire funds and get the word out about your services and products. Platforms like Indiegogo and Kickstarters are a perfect fit for entrepreneurs looking to get their enterprise off the ground without being weighed down by repayments of loans and beholden to stockholders. Other platforms that you can consider are:
- Crowdfunder
- Fundable
- CircleUp
- Republic
- Chuffed
- Patreon
- Buy Cryptocurrency
Cryptocurrency is tremendously changing the world, and one of the common ways it helps businesses is through funding. With the cryptocurrency industry, businesses have many options to get off the ground by using VC funding or bootstrapping. Either way, new enterprises can be creative and raise cash using different platforms like DropDeck.
If you also want to buy bitcoin, you can store them in hardware or software wallet. When buying the currency, you may consider places like Bitamp. Such a forum offers digital wallets to every customer who signs up for accounts. With this, you can decide when to sell your coins to have more capital.
- Borrow Money for Online Lenders
Online lenders are a great option for entrepreneurs who want to avoid visiting brick-and-mortar banks. Securing funding from online lenders is safe, convenient, and accessible for entrepreneurs. The funds can be in the form of term loans, equipment financing, merchant cash advances, SBA loans, and invoicing financing. To acquire such loans, you will need to provide:
- Business tax ID
- Financial statements for larger amounts
- Social security number (SSN)
- Consider Angel Investors
Angel investors are people who are investing in new and small enterprises by offering startup capital. You can search for these investors online or in person. At a cost, online services, such as Gust, provide startups a platform of connecting with potential investors. You may also reach out to local accountants, bank branches, and attorneys to help you look for reliable investors.
Whether in-person or online, getting funds from these investors may be a hassle. Though even if you don’t get these investors, you may acquire thoughtful advice or valuable contacts. These investors may not like your current ideas, but they may revert a few years later with new concepts.
The Bottom Line!
When securing funds for your startup, it’s important to do so with care and caution. You will also need to meet the application requirements set by different members to ensure you repay the loan on time. However, if you want to buy bitcoin, make sure you research thoroughly to understand how bootstrapping, and VC funding works.