Are you on familiar terms to get funding to start a business?
Get funding in present era is one of the main goals of the entrepreneurs who decide to start a business, and sometimes it is one of the most difficult tasks when creating a company. However, the fact to get funding to turn your entrepreneurial idea into reality should not discourage you, because in this content I will give you some ideas; so you can get the capital you need and have the opportunity to work in the way you like.
Entrepreneurs can have a variety of business funding depending on the characteristics of their projects. Each format has some advantages and disadvantages that must be clear when going out to look for funding. Among other things we must look at the trajectory, the profile and numbers of partners, sector or market status.
Review these ideas if you are in quest of funding your business
Family and friends
The advantage to get funding from family or friends is that financing is quick, no guarantees are usually asked from you, with the drawback that the amounts that can be achieved can be little also can threatens the personal image of entrepreneurs if the start-up doesn’t work properly. It’s a primary source of financing, since it is exploited for the establishment of the company itself and occurs when an entrepreneur started its business with the help of its family and friends. The positive thing is that it offers large justifications, and has much flexibility as the term how to return.
Credit
One of the major complications faced by entrepreneurs when they plan for self-employment is the obscurity in accessing credit and funding. Although today it is difficult for companies to provide loans to entrepreneurs, but it is true that many companies has special loan for entrepreneurs which you need to look up for, and this is the way that can give you the opportunity to get financing. If you don’t want a loan it’s good, but if you have no alternative look at this option as it provides access to resources for entrepreneurs.
Bank funding
The Bank funding is one of the toughest doors get opened for the entrepreneur. It is only available for very solvent, labor and realistic projects, which explain very precisely the aim of the funding and how to return it. The main advantage is that it is quick and strong. It is best suited for traditional businesses, with guarantees to respond and resources to sustain the project.
Business angels
They are private investors who bring their capital, their experience and contacts in the market. They offer funding. They know that what they provide is as important as the capital. The problem is that they can be too much involved in managing the business. They can be useful for niche projects in the same sector and geographical region.
Crowdfunding
This is a democratisation of finance business projects. The entrepreneur who seeks funding puts its views to anyone who may be interested in his/her project, usually via Internet. The contributions are rewarded with some kind of consideration related to the project (delivery of material, explicit recognition of the financier, etc.). FFF funding multiplies exponentially as it extends to the Internet. The hindrance is that it’s almost unfeasible to plan as there’re chances of discontinuous funding.
