No matter who you are, if you have it in you start up your very own enterprise, the chances are that you’re going to need some help doing it.
Entrepreneurs are constantly searching for the next best thing to dip their fingers into. The latest trends or market demands are always hot options for the man (or woman) who wants to be their own boss. There are a million ways to go about starting up, but are you doing it right? Creativity, capital and a clear idea of how you plan to execute your business, all form part of the start-up process.
Having the capital to get started is often the most challenging part. Let’s not forget that having a great idea doesn’t always come packaged with the funds to get the idea off the ground. Sourcing the funding should be the highest priority when you’re ready to take the leap into this new, high-risk, high-reward venture your ensuing. Loans are the obvious choice, investors are another top-rated alternative.
If you’re in this position and could do with a bit of advice, sit back and keep reading. We have a few tips that could just make this new and exciting venture the easiest thing you’ve ever done.
Consider all funding sources
Yes, the bank will lend you money, but don’t always rely on the option that’s glaring you in the face. Look around and you may be surprised as to what others have to offer. There are angel investors that are looking for the most ideal project to put their money towards, as well as crowdfunding, grants and other capital firms.
Typically, entrepreneurs look to their own finances and savings to start up their business. Don’t forget your rich uncle Gordon either. Friends are also inclined to do you a favour where they can since it means you owe them one.
Statistics show that 90% of start-up businesses fail. No one ever claimed to love stats since they’re generally pretty shocking, but they are what they are for a reason.
Individuals are so eager to dive in without having considered the full plan of the business. That is short-term right through to the long-term. The failures all tend to transpire within the first year of operation. This rate of failure makes it tough to appeal to investors, but don’t’ give up and furthermore don’t drain your own account!
Produce a business plan
Investors love themselves a sound business plan on how you’re going to make them rich. It’s all fair and well to simply project figures, but they will need to be backed up with evidence of how you plan to achieve these figures. A strong business plan will have investors assured that the money is secure with your business idea and know-how of the industry you’re dabbling in.
Highlighting potential risks and furnishing proposed solutions for these risks, should they transpire, is a fine way to display your thorough research and understanding of the business you’re getting into. Don’t forget to include a market analysis and other fancies that might appeal to the readers of this well-thought-out dossier. The more exciting it seems, the more likely you are to have investors jumping at the chance to get involved.
Get out there & network
It’s absolutely no secret that the best way to attract investors to assist in a start-up business is to network. This means marketing has fundamentally become one of the most favoured ways to branch out on your business, develop business and come across others that might have a vested interest in what you’re proposing. Relationships are everything. Building them is therefore paramount to earning any trust in your ideas and future ventures.
Other business owners are also willing to lend you sound advice for moving forward with your business. They might even have contacts that they can put you in touch with. These contacts will all be conducive to the longevity of your business. Some might come in handy during the start-up phase, some during the growth phase and others later in the difficult and more challenging phases.
Learn to compromise
Remember that even though this is your ultimate dream idea, you still require funding to get it off the ground. If investors are passing up on your idea, or otherwise suggesting alternative processes to the business, it’s important that you remain open to compromise. These are the people who are going to help your business take flight, therefore it’s a wise idea to consider that they might have some good ideas that you hadn’t considered but could really work. Just by being flexible, you have now secured the chance for your start-up to be fully funded!