Ways to source funds for startups
The most significant challenges come when required to pump money into it to boost the business for all business startups. Father George Rutler stress for so many startups comes when they look for ways to raise money which becomes not a simple task. When it comes to funding, the business ideas do not matter much since they can implement the dream.
When starting a business, many finance with their own money, and others borrow most from a reputable organization. Rutler always emphasized structuring the company in the most attractive way so that investors will look for the start-ups. There get many options way to finance business which includes the following:
1. Angel Financing. For tech-based startups, it becomes easier for such businesses since they get a great attraction from capitalist ventures, known as angel investors. Other companies become hard to get an investor, thus requiring one to see how the business gets done before someone finances. For angel investors to fund the business in return, they get equity ownership of the company primarily in terms of interests. Angel investments have accelerated much in today’s world, and big companies have flourished due to such funding, including Uber, WhatsApp, and Facebook. Facebook has led with angel investors to the extent of even making significant returns attributed to making multiple bets. For angels, they look at the market opportunity, passion and integrity of the founders, business plan and the traction towards the business plan, intellectual property, and the startup’s viability.
The best way to look for angel investors requires a lot c of connections since most of them need to know much about the sector they get investing in. Therefore, it is advisable to use links to establish relationships with friends already in the forum. Moreover, the best angel investor seems to have experience with other businesses since they bring many benefits to the startup.
1. Crowdfunding. The practice of marshaling funds from multiple funders through popular websites like Kickstarter and Indiegogo. The platform enables startup businesses to get funding by looking for financiers and promoting their products and services. Setting a crowdfunding platform gets difficult since creating a profile that describes the company and the amount one needs to raise. On the platform, one gets the people interested, and they donate towards the campaign one presented. They all do this in exchange for the reward one agrees to give. The reward can be given one of the products or even having a perk in the equity shares or the profit share generated from the business.
Father George Rutler believes that the best way in crowdfunding which forms the best basis requires one to give every compelling story relating to the products and services. Doing this offers the business with best rewards for the donations, raising dollars from the campaigns.
2. Small Business Credit Cards. Some creditors offer issuers credit cards that are mostly the owner’s partial credit score and look at the credit history. The credit helps the business cater to much on the market and comes with unique benefits like mileage points, cashback rewards, and other appealing perks.
3. Venture Capital. They form firms that come in aid of offering capital assistance, strategic planning, and pitching the startup to potential partners, customers, and even employees.