Few ways to fund a start up business

Hey guys.
No matter whether you have a grandiose game-changing idea that flashes into your mind or a simple idea that would enhance customer experience, you definitely need money to bring it to life.
Considering that financial problems are among the most common challenges startups face and because of which they sometimes fail, it’s absolutely necessary to figure out how to fund a startup in the best way possible.

1. Bootstrapping

Bootstrapping is one easiest, fastest, and most popular options to get a project rolling, because this financial model relies on your funding only, with no strings attached.
Depending on the amount of money, you can hire your first employees, do marketing activities, find a mentor or consultant who can guide you through the business, and give useful advice.

1. Crowdfunding

Crowdfunding is the process of raising funds through donations from people. Donations usually happen using platforms, like Kickstarter, WeFunder, Indiegogo.
It works best for some product startups because it is easier to get people excited and actually want the product. However, it also works nicely for technology startups, if you manage to come up with special perks, like exclusive membership, or unique gifts.

1. Angel investor

An Angel investor is an influential and wealthy person who can financially back up your startup or a small business in exchange for some equity. Collaboration with angel investors proved to be worthy for many startup founders. Not only should they be looked at as a source of funding, but also as someone who can provide you invaluable feedback on your startup idea and pitch.
You can find angels just by googling angel investor networks in your area, or on Twitter, LinkedIn, AngelList, etc.
Hope this helps you. If not just tell me how you can proceed to get funded.

 

[Deleted member 28127]

Bootstrapping is differing because it was based on bootstrap bundle but it differs to different technologies. Most know bootstrapping is with symfony but it could also be installed for angular what we call angular powered bootstrap. It is also available for ReactJS with Django. The module is called gryevns/django-react-bootstrap. For angular it differs because angular could be applied to viewjs or to nodejs or to express js and the call for example in nodejs is by calling it in index.html, likely bootstrap 3 is deprecated but there is possibility to use CDN of bootstrap 5. For express js it is possible to call directly on ejs views, this is a new implementation way to let the code visible to the person that is in browser mode not in server mode. Additionnally, for view js it is another implementation where there is a possibility to use a complier to compile views with col or sm or xs and then it generates the HTML page for views then you could can Bootstrap in these pages. So the manner of calling Bootstrapping is differing due to the technology requirements that could differ from one language to another then it is a big tutorial but I resume in few words.

 

[Mandy96]

I agree with the other two but the other one, somehow I do not think that could work in the sense that crowdfunding usually works better for brands that has already earn a name I mean they are popular, it is specifically for company heading to a bankruptcy level, such organization would have been known by a lot of people, but for an entrepreneur, I don’t think it is an idea I can support, because a lot of people out there use this is a means to defraud people of their money, so if you don’t have a known name, it could be a very slow process for a start up business

 

[Lens1000]

In the country where I reside, the point raised are good ways raise fund for your new business but the only point that I do not surport is the angle investors. Most of the angel investors would look for ways to steal your knowledge and later dump you. It has happened to me and I don't advice people to take that direction.

 

[btaliat]

The best way is just to make sure to save up the required money to ease the process.

 

[sincerem]

Your three tips is very much well demonstrated and explained. When it comes to the one more realistic to get a business funded with low capital, one can simply opt for crowdfunding source. But if in the sense that the person or the entrepreneur is very lucky, then he or she can get an angel investor who can simply help him or her set up the business due to the great idea which the original business owner showed, the angel investor can simply pick interest from the business and invest in some capacity to keep the business running to drive huge financial returns.

 

[Mataracy]

Though all this method are good way of raising fund but all this company can not just help some body unless they find out which type of business you are doing and how excel are you there.
Before they can help some one they might have find out if the business as future or not before they will proceed to help the person.
They can not giv any body any helping hand unless there is guarantee that they will make more profit at the end of the contract.

 

[Skysaint]

This is actually my first time of hearing about bootstrapping method and am still not cleared yet from what you explained about it but anyway I do hope it works.
Like someone earlier said, crowdfunding might not be very easy for a stater who is just starting a business for the first time but for a renowned company or business enterprise that is almost at the point of growing insolvent but have good prospects just that they lack the required funds.
I don't think anyone would fund someone who just intends on starting a business for the first time, even if it's possible I don't think it's common bin this part of the world.
So I think the best is just for you to save up your money, it might be a slow process but I think it's actually a better option

 

[Good luck]

I will suggest the act of savings.It is preferable to save a required amount of money that you think will be okay for your business and start doing the business gradually or your trading.If you are finding it difficult to save money due to time constrain,you can easily apply for a soft loan that can be paid with ease.

 

[Sotherefore]

So what of self funding ? That should have been among the list because it is not the best for us to rely on other people for anything we are doing. We are the one that is engaging in something it is the best for us to try out and get all the things we will need to be successful in what we are doing. Support may come naturally no doubt but depending on support and crowdfunding is not really the best because you may be disappointed if you are not qualified to get it.. let's try to be independence.

 

[Sherman198]

I think there are several ways to fund a good business.....You can fund your business through borrowing from friends or a loan from an organization or help from families. However, I would not encourage taking or borrowing money from a loan organization as it's completely risky to do so. I would not give this as a business advice to anyone.

 

[Setho]

I have always loved the idea of using angel investors to fund your business. It is not going to be as easy as you think about it then it might even be a sign that your business idea is top-notch and they are going to do whatever it takes to keep it in business.

 

[Chibson]

There are a lot of ways in which you can use to raise money for your startup business and over the years a lot of businesses have been able to become successful through these.

One thing you must understand is that no one will be able to invest in your business if it does not have a clear-cut roadmap that will give investors a clue of the amount of profit they are going to make on the long run.

You don't just start a business and wish or hope that you will get angel investors because it does not actually work that way. You will actually need to convince people to invest in your business by the kind of knowledge you have.

There are many people that have money but do not have any business idea and they are looking for start-up businesses that will they would invest on and make a lot of profit in the long run.

Crowdfunding is also very good way of raising money for your startup business if you can be able to and get people that will fund you. It is usually work for people who are pretty popular in business, you can use platforms like Twitter to get a lot of people to crowdfund your business.

 

[Jasz]

When you feel ready to start a business but lack capital for starting costs and overhead, it can feel like you're at a dead end. Don't give up! There are plenty of ways to get your company off the ground without needing a lot of money up front.

The first thing to remember is that everything takes time, and while some businesses are built in an overnight success, many take years of hard work before they really take off. If you need to make money while you're working on getting your business going, look into ways you can use your skills and knowledge to freelance or consult with other businesses.

If you're interested in applying for loans or investors, consider applying to a pitch competition. Competition winners often receive small amounts of cash or help with setting up their business from larger companies.

You may also be able to find investors who would be willing to lend their extra funds for a share of your company's profits until the loan is paid back. Finally, if you have debt from schooling or other life events and have a good credit score, use a credit card with low interest rates as a form of credit for your business.

 

[Abigael]

Starting a business actually requires one to start with a good plan so as to increase its chances of succeeding. The planning will cover on how much capital is needed and how to get that capital. It is here that you will discover sources of capital which may include;

1. Your own savings or income. - I personally consider this to be the best source of capital. This is because it gives you the confidence to work hard since you are spending your hard earned money on something with the hope of gaining profits. Moreover, you don't face the pressure and anxiety that comes with having to pay back a loan.

2. Fundraiser from family and friends - You can start a business by asking your friends and family to help you raise some capital. Most people have done this and it has worked for them. Though you really need to gain the trust from family and friends. They need to trust that you will spend the money wisely.

3. Getting money from investors - Pitching your idea to potential investors could lead them to giving you the money you need to start the business. With the promise of them having a share in the business. Here, you need to have a really good plan so as to gain the confidence of those investors.

 

[Augusta]

Starting a business is becoming very tough now especially in my location, the inflation here is very high and is making everything here to be above the top. So if you want to start a business you might just need a lot of money and this is where to get the funding comes in.

I think working for few years to gather the capital isn't a bad idea than planning to get a loan from the bank. loans comes with high interest most of the times so starting off with money that you need to pay back the interest in the shortest possible time wouldn't be great with a start-up.

Better still it will be a good alternative to get an angel investor to invest in the business and you both come to an agreement on how to work out on the sharing formula for any commission.

 

[Ithedicious]

Thank you so much for sharing . I don't have so much idea about all the ways you have mentioned but with your explanation I have been able to get some points on how most of them works . Do you really think that we will have a high possibility of securing a business capital with all these ways ? .

Personally I will just advise that anyone who is interested to start a business should rather look for a way to raise the money needed to start the business by working or getting it from friends . Borrowing the money as loan from the bank or any other organisation might even put you at risk because if you are not able to pay back the loan within the agreed period of time , you might likely falls into a serious problem . This is what you must understand .