"Ways on how to raise money for your business" (part 1)

Business: Ways on how to raise money for your business (part 1)

 

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"Ways on how to raise money for your business" (part 1)

Business is an act of doing what you love doing and making profit while doing it.   

Now on this article I will be showing you some ways on how to raise funds (money) for your business.

Firstly, before thinking about raising money for your business, you have to know how much you will need to start up your business or to bring your business ideas into reality. Like I will always advice those who are looking for money to start up their business, when raising money it should usually be with some goal in mind. The goal can be to reach certain revenue milestones, profit or number of customers. 

The goal can also be getting your product in the market, or buying equipment. Following what I said earlier on this article, in order to reach your goal, you need to calculate how much money it would take to reach it.

Now let’s look at some ways you can raise money for your business:

Getting support from family & friends

This is actually one of the simplest ways to raise money by getting combinations of donations, loans or investment from friend’s family. While sometimes it's not a good idea to do business with family & friends, it is one of the simplest ways to raise small amounts of money to start your business.

You can also raise money by donations

This type of fund-raising can also be called crowd funding. In this way you can get donations from friends, family and others who want to support your business or project.

Raising money by loans

     

If and only if you cannot raise enough money from friends and family or donations you are to take a loan. You can sum up what you are able to raise via those means with taking out a business loan. But you must know that banks & non-banks loans tend to also cater to businesses which have already been in business for some time, only very few companies lend money to businesses which are in planning stages.

 Raising money by getting an investment  

Like I will always say investments and investors come in many different types. Technology and growth investors tend to look for big markets, proven team and traction which means that in nearly all cases your business has to already be in business & showing some progress. But there are other types of investors who invest in niches that they know very well in real estate, or some particular industries. Getting an investor to invest in your company can be sometimes difficult, because for the most part they make very few investments.

Take a look at angellist.co which is the biggest available database of investors & the companies in which they invest. If your company fits the profile of the types of business they typically invest in, you can make an account there for your business.

Raising money for your business has not been so easy in the time past but if you can follow the instructions on this post, you will be very surprised as to what you can achieve. If you do not find any of the above mentioned method suitable the you should look out for the part 2 of this post.

           

Updated (click here for the part 2 of this article)