Did you know that 80 percent of start-ups fail in the first six months?
Even if you have a stellar business idea, there are many obstacles and challenges that you’re up against.
The most common problem that new business owners face is start up funding. It’s difficult to start your business from absolutely nothing.
As the age-old wisdom goes – “you have to spend money to make money”. But it’s not all doom and gloom.
Our tips for securing the start up funding you need shows you that there’s hope for start ups after all. Let’s take a look!
1. Know Your Funding Options
There are so many different sources of funding to get your business idea off the ground. Many entrepreneurs are unsuccessful because they’re not willing to do the legwork of researching for start up money.
Make sure you explore all of the options before you decide how you’re going to raise the capital for your business.
Ideas for funding include applying for loans that you can pay back when you start earning revenue. You can also get sponsored by another organization that believes in your business idea. You can also crowdfund your idea to get popular support for your business plan.
2. Ask for the Right Amount of Funding
What’s the right amount of funding you need to launch your business?
Surely, the right amount is as much as people are willing to give you. But that’s not always true. Especially if you’re applying for a loan, you don’t want to bite off more than you can chew.
Being realistic about what you actually need allows you to reassure potential funders or lenders that you know what you’re doing.
3. Prepare for Your Pitch
Whether you’re applying for grant money or for a bank loan, it’s important you have prepared for your pitch.
If you don’t know your numbers, this can really put off investors in your business. Make sure you put together a convincing business plan in a clear and effective presentation.
By demonstrating that you have an excellent grasp of the market, your business plan and the projections for revenue, you stand the best chance of getting the start up money.
4. Give Yourself Time to Get Start up Funding
Nobody is going to offer you the start up money for your business without asking any questions.
It can take a while before you have enough capital to get started with your business plan.
It’s important to avoid rushing the fundraising process. Make sure you have allowed yourself time for delays and prolonged decisions.
Little Loans For Your Start Up
Now you know what it takes to put together a business plan and funding applications to get the start up funding you need.
Do you need a pay loan for your business? Do you want to find out more about Little Loans? Check out our website for more information about our services.