How to Get Start up Capital
Starting a business is not a joke. It requires time, effort, and most of all, money. Looking for the capital for your business is also a difficult thing to do. There are many ways to raise capital but you have to prepare a business to convince investors and lenders that you are worthy of having the money.
Starting a business is a tough thing to do. Admit it, especially if you have to start from scratch and do all the things.
You have to look for employees, office, build a name and get the trust of your clients. Indeed, challenge is everywhere. But the greatest of them is how to get a start up capital.
Lucky for you, there are a lot of ways to raise capital. However, you need to have good negotiation skills and strong determination to really launch your business.
Tips on how to get a startup capital
- Know your business. To fledge in a business, you have to know what the business is all about. Most especially, you have to know how to manage if properly.
- Research a lot. Look for ways on how will you make your business click and the start up capital that you are about to borrow increase in folds.
- Show a good business plan. A well-made business plan tells your investors or lenders that you’re really serious with your business. Ways to raise a start up capital
Now that you know what to do to obtain a start up capital, let’s talk about how will you actually raise your needed money. Here are some ways to have it:
Banks and other similar financial institution provide small business loan programs to help entrepreneur start their own business. To get a solid funding from banks, make sure to present a realistic and attainable business plan. You have to convince the bank that you’re worth the loan and that your business will really make money.
Tip: To impress the bank further, have a good credit rating and if possible, have a co-signer in making the loan.
Family and Friends
This may sound too familiar, but yes! Most people go to their families and friends to borrow money. Just make sure to treat this relation as a professional one. Plan and make sure that you will repay them on time and, of course, with an interest rate.
Angel Investors & Venture Capitalists
If you want to go for a bigger business venture, then, angel investors and venture capitalists are what you are looking for. However, their expected returns are in form of acquisition, stocks, or IPO.
Like banks, angel investors and venture capitalists look for business plan before they invest in your business. This is an assurance that you are serious about your business and that you can execute what you have planned for.
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