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How to Raise Money for Your New Business Start-Up

30 May 2018 No Comment

Many people dream of starting their own business but not all people manage to achieve this dream. One of the biggest problems that people face is the lack of funding for their new business, especially when they are unable to spare the money to fund it themselves. In this article, we are going to explore some ways that you can raise money for your new business so keep reading if you’d like to find out more. Take Out Loans Our first way that you can raise money for your new business is to take out loans in your name. This is obviously something which you might want to avoid, but unfortunately, this is not always possible which is why at the time of last resort, opt for loans South Africa from a trusted company who can ensure quick financial transactions. If you have credit cards, then you could consider using these to finance your new business. This is risky if you are unable to pay these back soon because of the high-interest rates that they are likely to have. Another great way to finance your business is by taking out a personal loan. The bad credit loan specialists at Everyday Loans are great because they tend to have a lower interest rate than most credit cards. They are also great if you have a bad credit score as you will still be able to take out a loan as with most of the providers of these types of loans. Make sure that you consider carefully the effect that taking out a personal loan will have on you before going ahead with it. Ask Your Friends and Family Another way that you can raise money for your small business is by asking your friends and family for help. Although they might not be willing to risk their money, it is worth a shot when it comes to achieving your dream. You might be surprised at the number of people who will invest in you simply because they believe in what you are doing. Don’t be afraid to ask around and see if your friends or family know any local investors. If you are going to take money from your friends and family, it is really important that you set out some guidelines before agreeing to anything so that you can manage their expectations. They should be aware that your business might not be a total success and it might take you a while to get their money back to them. Think carefully about who you are borrowing from as you don’t want to cause problems for yourself in the future. Angel Investors If you don’t manage to find someone who is close to you that is willing to invest, try to find some angel investors. These types of investors like to invest in start-ups or small businesses in the fields in which they have had experience in. You might even find that this route is a better option for you as they could possibly provide you with advice and assistance in the industry that you are joining. Angel investors are not as hard to find as you would think, with many websites offering you the chance to connect with these types of investors. Try out sites like Go4Funding or Band of Angels to find someone who could turn your dream into a reality. Crowdfunding Our final option for you to secure funding for your new business or start-up is to try and get some crowdfunding. Crowdfunding involves putting together a pitch to potential investors online who will decide if they’d like to contribute. Often with these sorts of websites like Kickstarter, small businesses will offer things in return for getting the investment that they need. Crowdfunding has worked really well for some businesses in the past so make sure not to ignore this type of fundraising. You’ll need to set a target for the amount that you need to get your business off the ground so think carefully about how you are going to pitch your product or service and how much money you need. Once you’ve got started and secured your funding you’ll be able to get your business up and running in no time. Our Final Thoughts Overall, starting a business can be hard and finding the right funds to go ahead with the project can cause major speed bumps. Don’t be afraid to test out all of the options that are available to you as you might find that you can get investments from people you never expected. We highly recommend that you take out a personal loan if you are really struggling but make sure to only do this at times when you know that you can pay them back soon enough. Start asking your friends and family today and you’ll be able to be right on your way to running your own dream business.  

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