The idea of waving goodbye to the nine to five and swapping the overbearing boss, unrealistic targets and long hours are the stuff of dreams for many. However, a select few decide to take the plunge and turn this fantasy into a reality. With a sound business idea, they move forward and transform their amoeba of a money making thought into a fully fledged startup. If you have a business idea, it’s vital that you work through the usual hoops to make sure that it is a viable money-making notion. You need to carry out market research, make tweaks as and when necessary, monitor your potential competition, hone an online presence, and try to make realistic financial forecasts for at least the next three years.
A more vital aspect to your startup is the funding aspect. If you are a one-person band, working on craft projects and selling your wares through eBay or Etsy, the chances are that your overheads will be low and your need for funding will be non-existent. However, if you are looking to secure premises, you are in need of staff, or you are simply looking at a bigger enterprise, you will need to secure funding. Take a look at this essential guide to funding your startup so that you can hit the ground running with buoyant cash flow.
The most traditional method of business funding is to make a visit to your bank manager. You will need to present a pitch that persuades the bank to part with their cash and invest in you and your idea. It’s imperative that you are well prepared. Hone your pitch and enthuse your audience. A dry, boring presentation will make anyone watching think that you don’t care enough about your startup idea. Enthuse them with your natural engagement with your idea. If you’re planning on opening a restaurant, tell them about your inspiration, your menus, and your experience. If you’re eager to set up an import business, explain to them the niche in the market that you feel is untapped.
Make sure you know your finances like the back of your hand. You need to tell them how you worked out your profit projections. You also need to tell them where the money you are asking to borrow is going to be spent. Will you be securing a premises? Paying wages? Or funding a marketing campaign? Be specific and answer any questions they might have for you. Present yourself well, look smart, and smile to help you gain that funding.
While they sound ethereal, a business angel is the perfect funding option for the individual who wants knowledge as well as money. If you pitch to a business angel and they invest in you, consider your idea well and truly validated. A business angel has years of experience within specific industry sectors, and they are eager to help newbies enter their sphere. With a font of knowledge and contacts on tap, you will be gaining so much more than a cash injection.
With a business angel on board, you may find yourself under extra pressure to perform. After all, a business angel has invested his or her own money and wants to see a return, so be prepared to work hard.
In the twenty-first century, the dawn of social media and connectivity has made developing a global reach much easier. Crowdfunding enables you to market your business to the world, and attract multiple amateur investors from across the globe. This collective approach to funding attracts millennials and gives you much needed support across a range of platforms.
No amount of funding can account for emergencies as and when they arise. A theft from your warehouse resulting in diminished or damaged stock or transport breaking down can mean that your business grinds to a halt. In these situations, online payday loans could be utilized to tide you over to ensure that your cash flow remains fluid and allows you to fulfill orders. This is much more sensible than relying on a credit card as your loan will be paid back within thirty days rather than a long drawn out payback period.
Starting your own business is the most satisfying way to spend your working life. You get to become a master of your own destiny, and you will always have yourself to answer to. Get your funding strategy right, and you could soon see your startup going from strength to strength.