We are frequently asked by several entrepreneurs that “What are the best ways to secure initial funds for the start-up?”. And we answer the same thing to each and every individual. There is no magic in this world. You cannot expect fairies to fulfil your wish or a money tree that will let you pluck out the $100 notes. You have to be practical with funds.
However, you can try out different methods to secure funds for your business. But before you venture these funding ideas, you need to make sure that you are willing to walk the path of an entrepreneur.
Before we head towards the methods, you must know that all the methods have their own advantages and disadvantages. There might be methods that may not suit you. The implication of these methods depends on your current situation.
Reliable ways to Fund your startup
We, along with LLCRatings.com, have handpicked some of the best methods that will let you secure initial funds for your startup. These methods might come in handy spending on your current situation.
- Bank loan
This method is the simplest method for aspiring entrepreneurs. You just have to apply for a business loan to your respective bank. And if you are qualified for the loan, your loan will be accepted.
However, this method will not always be successful as you would need to give something of equal value to the bank.
- Trade equity
This method is also known as bartering your skill. That means you will give your services to the other for something that you need. Let’s make you understand with an example.
Let’s say you have software knowledge and want to open up a shop in a mall. But you do not have enough money to rent a place. So instead of paying them in cash, you can pay them with your skills. That means whatever software problem shopping mall faces you have to provide your services for free.
ICOs stand for the Initial Coin offerings. This usually happens with the crypto coins where you can raise the fund with ICOs. There are several platforms that help the traders to help aspiring entrepreneurs with the initial coin offering.
The Cryptocurrencies have been so impactful that most of the companies have adopted themselves for cryptocurrencies. You can start bitcoin trading with bitcoin future login
- Startup incubator
Startup incubators are experienced traders and business owners who are already successful and want to help the other to be successful people. You can try and look for such people and organizations to fund your startup.
There are several kinds of incubators. Some may help you by investing in your business, some may go to lengths to secure office space for you. These incubators not only help you with the funding but also guide you to properly lead the business.
There are certain investors who look for opportunities to invest in proven startups to make money. You can look for those kinds of people and can share your business plan with them. If they find that your business model is up to mark and has a possibility to survive in the market, they will invest in your startup projects.
- Crowdfunding campaign
Crowdfunding is yet another best way to raise funds for your startup. There are several sites on the online platform where entrepreneurs and investors meet and discuss about their plans. You can even post your business plan in detail and ask for help with the funds. If anyone finds your business compelling enough to invest in, you will be able to get an investor for your business.
So here you are, now you know different methods to fund your startup. However, you must take this into consideration that not every method can be implemented. The currency situation will decide which methods will suit you the best.