Business funding is a major step taken towards financing your business. A business to get started requires an amount of financial assist with which you can start your own business. Financial financing in any environment can be challenging, be it start-up funds, capital to expand, or money to hold on to a dying business. Securing funds can be a daunting task if you are up for a start-up business or are going through tough times to save a fading business. But with increasing popularity of owning a new business various new ways have come up to help finance a business. Let us take a look at some of the business funding methods that have been the present day preference of emerging companies:
Getting a Bank Loan – The most prolific of all kinds of investment and also a common form of attracting investment is through a bank loan. Loans are the assets of the banking industry and any bank would be eager to offer them unless the business provides a return on investment platform. Banks take a close look at the longevity of the business and after going through the business capabilities of garnering profits sanction the loan.
Bootstrapping your own business – Bootstrapping or self-funding your own business is one of the best ways of financing your own business. First-time entrepreneurs often have trouble finding a suitable investor to fund their business. So making some initial investments out of the saved income is essential for starting up a business.
Crowdfunding – Crowdfunding is one of the newer ways of business funding which has been gaining popularity of late. It is like taking loans from a different number of persons at a single time. Nowadays due to the availability of crowdfunding websites the task of gathering funds has become easy. The owner only has to put the required description of his/ her business on the website and wait for the incoming funds for the business.
Angel Investors – Angel investors are the individuals who have ransom amount of cash present with them and they are on a lookout for investing in a business which promises a good ROI. Alongside huge capital investments they can also provide some advice on how to get the business going. This goes in sync with the fact as most of the world’s largest business houses have started off with angel investors.
Venture Capital for Business – Venture capital is a firm that deals in business funding as one of its major work. These are professionally managed funds who invest in companies that have huge potential. They usually invest in a business against equity and make an exit when there is an acquisition or IPO. A venture capital investment may be appropriate for small businesses that are beyond the startup phase and already generating revenues.
Heading to reality TV shows to bag a business funding – There are TV reality shows like “Shark Tank”, “Dragon’s Den” which are known to fund the struggling entrepreneur’s business. Dragon’s Den, a very popular TV show which first aired in Japan has been known to be the first such show that encourages investors and entrepreneurs to help each other out.
Microfinancing – This is the one where a small amount of business funds are released in a limited quantity. This can be of great help as small businesses often make it big with small capital funds. It basically provides access to those who do not have the required access to conventional banking services.