Eight Ways to Fund Your Start-Up
Updated: Sep 12, 2020
You have a great food and beverage concept. You've developed your business plan, financial feasibility is clear and you know the path you need to take, but you need the funds to start your dream
Funding Your Startup
There are some ways to finance a start-up that involve various level of commitment and risk taking as well your personal efforts will matter. Whatever option you choose you have to weigh your advantage and disadvantage and go with the one most suited to your business model and tolerance for risk, needless to say knowing the minimal details of success in the current economic set will play an important factor in lender confidence to support your concept.
To help you get started, here are eight possible sources of capital to fund a start-up business.
1. Fund It Yourself
Most start-ups, at least in the commencement, are self-funded. This could be using your savings, using a retirement fund, or taking out a home-equity loan. This is a good approach if you are sure your project will succeeds, as benefit you don’t have the share your ownership. But if things don't go so planned, you have to consider the high risk of such step.
2. Friends and Family funding
People close to you like family member, friends may be a feasible source of your concept financing. After all, they already know you, your experience, and your reliability. They may be less concerned with how your business plan details and more enthusiastic to invest or advance money based on the strength of your personality.
But you have to be aware that this path could bring some issues if things turndown, Family and friends can be at stake if difficulties or misinterpretations arise.
3. Start Crowd-Funding Campaign
In crowd-funding campaigns on sites like Kickstarter, gogetfunding, gofundme anyone can make online pledges to help fund your business. This usually comprises pre-ordering a product, or receiving rewards. This is an innovative way to fund a smaller start-up.
4. Join a Start-up Incubator Group
An incubator is a start-up accelerator often associated with universities or large establishments. Their purpose is to support innovation and help entrepreneurs. Most provide access to resources such as office space, meeting space, facilities, but some also provide programs to seed funding. To learn more, visit flat6labsbahrain or fastercapital.
5. Apply for a Small Business Grant
There are lots of grants to benefit from in the kingdom of Bahrain. Tamkeen is one of this organization apply to them and you could potentially walk away with a safe and reliable source of money for your start-up covering many areas.
A good place to start looking for small business grants is the tamkeen
6. Apply for a Line of Credit or Loan
If your acceptance for risk is small, talk to your bank to apply for a low-interest fee credit or personal loan. Usually the amount is linked to your salary to decide on the amount to be granted and Keep in mind, though, you will have to make monthly payments for the duration you choose to return the loan.
7. Seek Help from Angel Investors
These are groups of high-net-worth individuals who are looking to invest in interesting business opportunities in their communities. It is similar to the "Shark Tank," TV program, where you have to explain your idea, show some success, and envision the future of your concept. The obstacle here is that you may have to give up on a considerable stake between 10% to 50% of your company for the angel investor. On the good side of it you may gain valuable expertise from someone who is motivated to help your venture succeed.
8. Go after Venture Capital Investors
Venture capital investors are professional investors with wealth fund and looking for big ideas. It is not the best option for new start-ups, as VCs fund only about one or two percent of all business plans they review. But if you have the right combination of concept and experience you can have access to few million dollars and supported by a team of proven individuals - they can be a great resource.
With any option you pick to fund your startup, you have to make sure you have an overall understanding of your concept, the financial details of it, be positive to show the enthusiasm you have to lead this venture no matter the challenges and most importantly have a professional-looking presentation.
Create visuals that show prospective investors your product, strategy, and other critical information. Experts say you have about 90 seconds to impress investors with your business plan. Make it count, with a visually rich report, they need to feel you are in 100%.
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