If you have a great business idea and after some extensive research, your concept seems doable, you have the basis for further investigation. Of course, regardless of the industry, you will need the necessary capital to get the business off the ground, and with that in mind, here are a few ways that you can fund a business start-up.
- Sleeping partner – If you can manage to find a private investor who believes in your project, you can offer a percentage of the business in return for funding the venture. Normally, the sleeping partner would have no control over the business and with a written agreement in place, you have the funding to go ahead and make your vision become reality. There are private investors that are looking for business investment opportunities, all you have to do is find them.
- Business loan – Rather than talking to your bank manager, search online for a business start-up lender who will give you a decision within a few minutes of submitting an enquiry. Brokers have association with many commercial lenders and are more likely to find a loan that is tailored to meet your needs. You could apply for a secured or unsecured start-up loan that spreads to repayment over a couple of years. Once the business is up and running, you can outsource payroll services and engage the services of a health & safety agency.
- Home equity – If you have equity in your home, this can easily be liquidated to set up your new business; talk to a mortgage broker and the rest is easy. This is perhaps the most popular way for a homeowner to fund a business venture and interest rates are lower than if you take out a commercial business loan. Remortgaging your home can bring other benefits, such as lower interest and pay-early options that will save you money when the business enjoys success.
- Set up a GoFundMe page – There are quite a few websites that connect investors and entrepreneurs and if you present your business concept clearly and can show a demand, you have every chance of reaching your target amount. There are no strings attached with this funding method and if your idea is innovative, this could be a quick and easy way to acquire the capital you need to launch. Click here for what you should now about bridging finance.
- Find a working partner – Partnerships work well, as both parties have different things they bring to the table and if you have a friend who fits the bill, why not propose your idea and see what they have to say? It can be difficult to bring friendship into the business arena; be clear of the distinction and have two hats when you do business with friends. If, for example, you are planning your start-up in Hong Kong, this link will help.
Without adequate funding, your business concept will remain just that and don’t forget to add at least 20% for unexpected expenses, of which there will be many.