How To Fund A Startup Business

The burning problem may new business owners have is to fund their start up business. Usually small and medium business owners struggle to find ways to find the required capital to implement their business plans. Here are few ways that you can use to fund your start up.

Partner up

Two is better than one. If you cannot raise the capital required on your own, you can get a friend or a family member to invest in your corporate and become a partner. This is better than getting the best SME Business Loans. If you don’t want to be in debts before the corporate even begins and of you are not very sure of the revenues best option is to convince a potential partner to invest or you can even get few stakeholders. Difference between a partner and a shareholder is that shareholders will only invest in your company, but they won’t get involved in the day to day business like a partner. So if you want to raise funds for the start up but likes working alone you can get shareholders but if you think you may need help you can get a partner.

Loan

There are many schemes to encourage small and medium corporate startups. Based on the type of the business you are planning to start there are various SME Business Loan schemes. For example if you are in to agricultural related business you get a special interest rate that is lower than the usually business loan rate. Or if you are in to science and research related business you get a long grace period etc. There are many schemes that are set up by the government to encourage businesses and help start up businesses to strive.

Angel investor groups

These are investors who would provide you with all the required amount of capital and will not ask you to pay back anything in return. But if you do succeed and earn a proper profit you need to buy back your shares. It’s more like they invest in your company but you don’t have to pay anything in return even a profit or a dividend, but after a certain period you need to buy the shares back from them. So this sounds really amazing but the problem is unlike loans these don’t come to you easily. You need to apply for a local angel investor group and convince them that you are serious about the business concept that you are presenting them. Then only they decide if your business is worth starting up.