Fundraising Ideas For Entrepreneurs
As fancy as it may sound to be known as an entrepreneur, fundraising is the total opposite of fancy that every entrepreneur has to undergo before getting to fancy. This is a time when lots of kids growing up want to be an “entrepreneur” as against the engineers, doctors and lawyers which were the preferred professions. Fundraising is only going to get tougher with the increasing number of people aspiring to be entrepreneurs.
Here are some of the top ideas that will be helpful for entrepreneurs to fundraise.
One of the most well known and straight forward ways of getting funds for a business is from Venture Capitalists popularly known as VC. There are many websites that connect you to Venture Capitalists. Investmentnetwork.in is one of many such sites.
Venture Capital, although is one of the very well known ways of many businesses getting funded, it is not the easiest. If the door to Venture Capitalists are very hard for you to open, then you could try what is called as Convertible Note. It is a way through which your loaners become stockholders once your company gets rolling.
If you cannot find one person to fund One Thousand rupees then find a thousand people to fund One Rupee each! That is the concept of crowdfunding. Sites such as GoFundMe have made crowdfunding an effective reality. If your idea or campaign is promising enough, finding investors among the crowd has become a reality. It also gives a lot more of them out there to be a part of something special.
Banks are always a good option for raising funds. It does come with certain conditions that may not be suitable for all types of businesses. For example, companies that have a tight cash flow would find bank loans suffocating at the early stages.
If you own a lot of gold or a property with the required titles then finding loans from institutions be it private or government is not a difficult task with this collateral. Although it comes with a certain risk, there is no business without an element of risk.
Yes, there are people called as Angel Investors. It could be your family, friends or a random rich stranger you would have met at an event. Always be prepared to pitch your business idea to anyone who shows interest. You never know who would like your idea mainly owing to the various perspectives every individual would bring to the table. It just needs that one person who looks at your business idea just the same way that you do.
If your company deals with physical products, one of the ways to raise funds would be through pre-orders. If your product generates enough interest among the viewers, there are a lot of them who would pay for the product to be made and then buy it. An excellent promotional video with explainer is one of the ways to let people know about your product.
Recommended Read :
- Bridge Loan Start Ventures
- What is Vendor Financing?
- Raising Fund From Family and Friends for Start Up Venture
- How to Secure a Micro Loan for Start Up Business?
- How to Invest in a Start Up?
- Risks Involved in Start Up Investing
- How Can I Become An Angel Investor?
- How Risky is to Become An Angel Investor?
- What is Bridge Loan?