New Startup? 5 Tips To Secure The Funds You Need To Get Off To A Flying Start
by Ankita Tripathy Starting a Business 28 October 2023
The events of the last few years have taught us many important lessons – a monumental one of these being that running a business is a risky venture.
Especially in the early stages, your startup is extremely vulnerable. Changes in demand, rising costs of living, and the like all put your business at risk, and knowing how to secure funding from the get-go has never been as important of a priority for entrepreneurs as it is now. But how do you get started? In the article below, we’ll take you through five ways to do just that.
Savings, Personal Connections and Crowdfunding
First of all, it pretty much goes without saying that you should have some sort of savings in place before you throw yourself into the world of entrepreneurship. Of course, we completely understand occasionally just having to take a leap of faith without having a security net, and far from everyone goes full-time right away. But as soon as you do, you’ll be glad you put that money aside to get you through those first few months – or years – it sometimes takes to get off the ground.
Make sure to spread the word about your new business to family and friends and be smart with your marketing. By reaching your target audience early, you also have crowdfunding as an option – if you can convince them of the potential of your product, that is.
Networking to Find the Right Investors
When all of the above is said and done, though, you should also prioritize looking for investors. Because while savings are great for a while, they run out sooner or later – and to really develop your product and have the funds to market it properly, you’ll need a bit more money to work with. This is where finding the right venture capital firm or angel investors can really make a difference.
If you make the right connection, you not only have an extra source of funds free of charge but sometimes even a valuable sparring partner to bounce ideas off of as well.
Apply for Accelerators and Grants
Speaking of sparring partners, taking the time to look for accelerators and grants that align with your business plan is definitely also worth the effort. With an accelerator, you’ll usually be able to score a combination of mentoring and similar guidance alongside funding – and if you succeed in applying for the right grant, you’ll get all of these things plus an even bigger bag of money to kick things off with.
Loans to Keep the Wheels Turning
Next, you should also make a contingency plan for if things suddenly go south. For many business owners, this means taking a loan, usually through their bank. However, if you find yourself in an emergency, the process of getting approved for this might be too slow for you. In that case, running the risk of applying for same day business funding might be worth it – just to ensure that you’re able to keep the lights on for a while before you find your footing again.
Invest in the Right Specialists
Lastly, while you may be hesitant to onboard employers this early on in the process, investing in certain specialists might not be such a bad idea – especially if they have valuable financial know-how and experience from previous positions to bring to the table. Keep an eye and an ear out for anyone fitting this description in your network who might be looking for new opportunities and pitch them your idea to see if they’ll take the bait.