You have a great startup idea but lack the funds to actualize it. Don’t be disheartened—you can employ several tactics to raise the necessary capital to get your startup off the ground!
In this article, let’s learn about all the unique tactics you can undertake to get the appropriate investment in no time!
1. Take business loans for small businesses
Specific private banks offer loans to startups and small businesses. Since banks are extra careful about new businesses, it can be difficult to get them sanctioned. However, it doesn’t hurt to try to apply for one.
In some nations, there are government-aided loan schemes for funding small businesses. So, look those up as well.
However, don’t forget to check the rate of interest, repayment term, and repayment amount. Make sure you can afford it before you dive into it.
Note:
Some money lending companies also promise to offer loans to small businesses. However, many of them are predatory, so beware before you sign up any documents.
2. Borrow from close ones
One of the most common ways to gather capital for your startup is to ask for money from your family and friends.
After all, banks and investors don’t believe much in the efficiency of your plan. They are also not open to lending you money unless you invest a generous capital.
On the other hand, your close ones will have more faith in your ideas. So, they will consider lending you some money.
To increase your chances of getting funds from them, each party must work with a legal advisor and take the money in the form of a loan. This helps out both parties that if anything goes south, legal procedures are effective.
However, the only issue is that if you can’t repay the money, you may ruin these relationships. So, choose this only if you’re sure about your business idea.
3. Fund it by yourself
If you’re not getting financial support from anyone but are passionate about this dream, fund it on your own.
For this, you need to gather all the funds you can get as an individual. This includes your personal savings, any inheritance, no or low-interest credit cards, etc.
You can also work a job during the day and fund your business directly with the salary. If you already have a job, don’t quit it anytime soon.
And if you don’t, start looking for a job right away. It will help you not only pay your bills but also keep the business afloat if some issue arises. In fact, statistics show that having 3 years of work experience before beginning a startup boosts business success rate by 85%.
4. Execute a PR campaign
PR firms can curate compelling narratives about your startup, its founders, offering, mission and vision, and growth potential.
Through their storytelling abilities, they shed light on the unique value proposition and market opportunities that can resonate with investors. They also secure media coverage in industry-leading publishing and media outlets.
The right PR campaign, with the help of a well-connected luxury PR agency Dubai, can help you raise brand awareness and create interest in it.
This essentially boosts brand visibility and credibility, which is important for convincing investors while seeking their support.
5. Give a chance to crowdfunding
If you have a strong business idea and are skilled at using social media, crowdfunding is another option. In this, you raise money from several individuals through a crowdfunding website or organization.
In exchange for their funds, they get rewards in the form of products or services or access to special items. The rewards system ensures higher control over your business.
However, you have to create an intense buzz around your business. After all, you’ll compete with a lot of other businesses wanting funds.
6. Seek angel investors
Individuals with excess wealth who are interested in investing capital in exchange for a percentage of the company are called angel investors. They also support businesses as advisors/mentors with their industry knowledge.
Usually, angel investors take huge returns in the form of a portion of the company. This is way more than the interests charged by banks.
There are also some angel groups that gather money from several investors and use it in multiple startups.
Conclusion
Remember, it’s not easy to secure funds for a startup. So, it’s best to try all the strategies and wait for the one that works best.
