You’ve had the million-dollar idea; you’ve made the plans – what’s next? The first hurdle for any start-up is finding the money to make it happen. While once this would have involved a trip to the bank and a loan with pricey interest, the internet age has provided multiple solutions to guarantee you the start-up capital you need.
Many online platforms exist that are solely dedicated to partnering online businesses with those who can fund them. We’ve scoured the internet for the most profitable options available, so you can focus on the important stuff – like making your business as amazing as it can be! The following are all legitimate funding channels that have already led countless people to start-up success.
Business investors aren’t a new concept, but numerous innovative websites have made the process easier than ever. These funding aggregate sites allow you to create a single pitch and share it with their whole database of potential investors. Think of them like the Tindr of start-up funding. You can find people who are as invested in your project as they are in making money, which ensures a fulfilling working relationship for both parties.
Some of the most popular investment platforms are:
AngelList is like the LinkedIn of investors. You create a profile, grow your network and pique the internet of others. You can monitor your followers and send personal notes to anyone you think might be a good fit for funding your brand.
AngelsDen gives you access to an expert advisor to review your funding application. You also get the opportunity to be directly matched with investors via private introductions at pitching events. They take a 6.5% fee for any successful matches.
Gust also gives personalized advice to make your pitch as attractive to investors as possible. Once you’ve finalized the application, you will receive recommendations on the best place to find capital that suits your needs.
Working with investors isn’t for everybody. It often means you have to placate others with your business decisions and continually renew strategies to pay back your investors. Another option is to go the crowdfunding route. Instead of one person providing your funding, it’s produced by a large group of people. These payments can be a donation or an investment in the company, depending on which road you go decide to go down.
Numerous donation platforms exist that allow you to advertise your start-up to the general public, who can choose to give money to your cause. These investments don’t require you to pay anything back, as they stand as a ‘gift’ to your company. Popular crowdfunding platforms include GoFundMe, Indiegogo, and Kickstarter.
Seed money is more similar to traditional investors, except it involves multiple unique funders. Run similarly to crowdfunding, the only difference is that those who donate are actually buying shares in your company. As your business grows, so will the size of their shares. Top seed-funding websites include Seedrs, Seedcamp, and Seed Tribe.
Patreon was launched in 2013, and quickly became one of the most popular ways to fund online businesses. The concept is simple; your fans and users can sign up to the platform and decide to donate a monthly amount to your start-up. In return, they get exclusive content and deals, which vary depending on the amount they commit.
The “Patrons” aren’t investors, so they don’t own any of your company. This strategy affords you a stable monthly income that is invaluable for any startup. The only downside is that you have to create Patreon “gifts” to give to your members. Some ideas of regularly-used Patreon content includes:
- Articles related to your business
- Early access to new products
- Discounts and loyalty points
The other advantage of Patreon is that it acts somewhat like a social media platform. You can post and communicate with your fans and cultivate your relationship with them, which increases the likelihood that they’ll continue donating and could even become brand ambassadors.
Government Funding & Grants
Grants exist for startups of all types; it’s just a case of finding one that matches your business. An excellent place to start is to consider whom your company is aiming to help. Anything that promotes health, mental health or social support often falls under the remit of government funding. Similarly, there are usually available allocations for art and tech businesses.
The main advantage of this option is that you don’t have to pay it back. Grants are interest-free donations to your business, which means all profits can be kept to help you grow in the future. There are lots of ways to find appropriate grants. Start by checking the government’s official website. If not, a quick Google of the word ‘grant’ and your specific industry should uncover numerous results.
If you can’t find a solution with the above options – maybe the funding isn’t enough to cover costs, or you can’t commit to the terms of investors – then you can always aim to self-finance your start-up. Many online business owners also use their transferrable skills to earn extra cash on the internet. There are countless online jobs available that you can do from the comfort of your home. The pay range differs but it’s possible to make a considerable income. Here are just a few ideas:
Freelance writing gigs are extremely prevalent online. You can find work on platforms such as Upwork, Fiverr or CraigsList.
Writing code is another skill that’s in high demand online. Programming is relatively easy to learn, and there are always jobs available.
Many companies need people to transcribe recordings of meetings or other spoken events. If you are good at speed-typing, then you can make a considerable amount per month.
FBA businesses are Amazon supported eCommerce sites. Amazon does all manufacturing and shipping; your job is to manage and promote it.
Virtual Assistants are also common online. Once internet startups grow past a certain point, the owner’s need help with organization and administration.
Give Your Startup the Best Potential Future.
As an entrepreneur, you face endless uncertainty. However, it’s undeniable that having enough start-up capital is essential for true success. Using any of these methods can grant you the overhead you need to make your business dreams a reality.
You can opt to dedicate your time to one specific funding channel, or you experiment with a few options and find the most profitable one for you. Then, once you have the capital, you’re only job left is to create to business of your dreams!
3 thoughts on “How To Easily Secure Funding for Your New Start-Up”
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Starting a business can be fun but it can also be stressful especially in the funding part. Thank you for sharing these cool tips. It will be of great help for those who are about to start a business but is still hesitant because of financial reason.
Thanks for such a great blog looking forward to reading more article like this