It all starts with a vision, a project, and a product. So do you have what it takes to pull it off? Designing the concept of your startup or its logo is all fun and games. Things tend to get serious when you draw up a business plan and decide where you will procure your initial investment from and how you will spend it. Just getting your company registered in the initial stages will cost you a few thousand dollars so where can you secure the finances from?
1. Family and friends
Whether its emotional support or financial support, they have your back through thick and thin. They can spread the message of your company, and you will have the security to rely on them.
2. Crowdfunding websites
These websites provide new startups with easier access to larger audiences. You not only communicate your idea to the masses but can also test the functionality and market potential of your product.
3. Seed investors and angel investors
The seed investors are people who provide your startup with the necessary financial support and own a small percentage of shares in your company. Angel investors are often people who have sold their startups successfully many years ago and now look to support early ventures.
4. Private lenders
This perhaps is the most convenient way to fund your startup. Reputable private lenders provide efficient and prompt funding. Not only is there a minimum risk to both the business and founders, but this way you can also build your brand’s reputation in the market more quickly.
5. Bootstrapping
Bootstrapping is starting a business without the initial financial assistance. This is done by setting aside a small amount in the beginning and making use of the internal cash flows while cutting down on expenses. This solution is viable for those who do not want to waste time in preparing their investment pitch or involving the hassles of an investor.
6. Credit cards
This is a very short-term option and should be used as a last resort. Remember, your business credit needs to be very presentable to attract other investors. Make sure you deliver your payments every month regularly so that your credit score does not affect the image or reputation of your company in any way.
Whatever method of securing early-stage financing you choose depends on how much investment you require and how feasible your business idea is.
At First Union, we offer many financing options. Call today to find out how we can help you!