Four Ways to Fund a Start-Up

[Mika]

If you are planning a launch start-up and are trying to build funds, here are some ways you can try.

Members’ Funds: Build a team of members with common interests, and a common goal for the start-up, and use seed money from members. The majority of the large businesses and companies we see today were in fact funded through the founding members’ money.

Angel investors: Angel investors are the investors who are looking to invest in new businesses and new ideas. These investors are also willing to give a chance to new people provided they are convinced with the idea and they get equity.

Crowdfunding: You can try crowdfunding on Kickstarter. This is a good platform to raise funds for start-ups

Shark Tanks: This is a reality show where start-ups and small entrepreneurs participate and pitch their ideas for investment. If they impress the judges, they can get funding for their business. If this show is running in your country, you can try it.

 

[Shaf]

I always thought that crowdfunding was something that worked mainly for charity cases and not for businesses. It's a great idea to use to raise funds for your business especially if you have a unique idea that solves a problem people are tired of.

One of my favorite ways of funding a new business that I learnt from my mentor is to diversify early in business. The reasoning behind this strategy is to generate funds from multiple sources to fund the main business idea. Some businesses would definitely give you more profits in a shorter period of time, but it may not be something you want to do.

For example, I would like to open up a Pharmacy, but I could diversify into cryptocurrency to generate more funds fast. Of course, I wouldn't invest more than I can afford to lose but I could get a 100x return on that money.

Another way is by working extra jobs. A few hours extra per week doing small tasks can get you extra money to put into your business. Things like baby sitting, walking pets, being a freelancer and.many more are ways to get extra funds in your spare time.

 

[Sotherefore]

Crowdfunding could have been one of the best way people would have used to generate money needed to start up a personal business , but getting a crowdfunding project for your business is not really easy . That is why it is not a reliable way of raising capital to start up a business..

Membership funds is also a nice way to generate money , but here it may only be applicable in a situation that you have to engage in partnership business. In all the same , having close family members that are interested in the type of business could also be a way of raising a business capital


Whatever the ways you are interested to use in raising a business capital , it is very important for you to know the risks associated with it so as to make the right decision at the right time.

To avoid unnecessary problem it is always better to get your own personal business funds yourself.

 

[Abigael]

Those are really great ways to fund a startup. It is really awesome how there are so many supportive ways to fund a business these days. Think for example of such methods like the Shark tank show. This is something that was not heard of in the past.

Crowdfunding is also really awesome and a new thing to most people. Having such people who are willing to fundraise for great business ideas is really awesome. You can get so much support if you have really good ideas. All you have to do is proof it to the world.

Old is gold too. Traditional methods of finding a business such as pitching to investors or borrowing from family and friends help a lot. Plus you also have your own effort from getting a job and saving the money you earn.

All these efforts can all be tried to make funding a business to be so easy.

 

[Holicent]

Bootstrapping is a term that's used to describe the way that a company raises money and operates without outside funding. Funding is the act of providing capital for a company or project. A company can be funded by its owners, who provide the money to start it up and run it until they can generate enough profit to pay themselves back; they can be funded by investors, who buy stock in the company with the hope that they'll eventually see their money returned with interest; or they can be funded by government grants or loans from banks.

In general, bootstrapping is thought to be less risky than seeking outside funding because you don't have to worry about losing control of your company if you don't make enough profit to repay what you owe. However, if your business fails completely then you won't have any assets left over after everything is paid off, which can mean losing everything if you have no other source of income or support yourself financially (like through unemployment insurance). On the other hand, if your business succeeds then bootstrapping may allow you more autonomy over how things are done within your organization without having someone else dictating how things should be run.

 

[Etini]

Finding funding for a start-up is not an easy task. You would have to do a lot to sell your business idea to potential investors. A lot of investors would turn you down. Some would just encourage but not commit their funds.

In all, I believe that a person should start a business at the level he/she can and run it for a while before approaching investors. Truly, people prefer to invest in businesses that have been running for a while. It gives them some level of confidence that their funds are safe.

Crowdfunding is not easy to get on these days and times, especially for a business. It is easy to get for entertainment or distressed situations. I don't believe a business should be started with loans either. It has a way of choking the business to death. Get a solid idea, develop it, and approach these agencies that give grants. Or you save up and star small.

 

[King bell]

The best way to fund a start-up is to have the capital available before beginning. But for the rest of us, here are some alternative options for getting those initial funds when you need them most.

1) Crowdfunding: In this option, you create an enticing campaign with a compelling video, explain your business model and goals, and ask people to invest in your idea. Sites like Kickstarter and Indiegogo are great resources.
2) Microloans: Similar to crowdfunding sites but they each require certain criteria in order to qualify as a borrower. Your best bet is to check out sites like Kiva.org or Mircrofinance.org
3) Angel Investors: If you have older but trusted family and friends, ask for their help with small amounts of money for you to use for a variety of projects. You can meet with them or arrange a conference call to talk about your idea and show them your campaign video. Just be sure that you are thinking long-term because it's possible to lose a lot of money in this scenario as well!
4) Venture Capitalists: This is the method most used by entrepreneurs and new businesses on their way to success. These people invest millions over time in the hope that their investment will lead to profits for them in the future.

 

[Jasmine]

The first thing you need to remember in order to build funds for your start up is create a business that is interesting, unique and a lot of people can benefit. The product you have created should benefit a lot of people. If you have built a sustainable product, for example, energy efficiency product, organic product, recycled product, etc. it will be easier to build funds. If you created a product that has on other purpose except become commercially successful by making you money, it is not possible to build funds. Therefore, the product your start up has developed is the key to build funds. If you have really good product, you can use multiple methods, from angle investors to crowdfunding, bank loan, etc. One of the easiest ways to build funds is by becoming a public company and trading stocks on the stock exchange. A lot of start up built funds through this method.