Im brand white

Register

and get access to full InnMind Platform toolset
Financial & business-planning

5 Reliable Options for Start-up Financing

by Isla Wright, on May 21
For quite a lot of people, the decision when to start their start-up comes down to finance.
6 phases startup financing 101694194

However, you can’t just sit and wait for capital to magically appear. Instead, what you need to do is keep looking for the right way to obtain financing for your start-up. Luckily, there are plenty of ways to do so and you’ll need to do a lot of research before you make any final decisions. In order to help you, we singled out 5 reliable options for start-up financing you might want to take a look at.

Crowdfunding

If you think you have an awesome start-up idea, you might want to turn to a crowdfunding website. Basically, these are places where you present your idea to other web users and they make small contributions to help you turn it into reality. This is one of the newest ways to fund a start-up and it seems like it has taken the world by storm. There are many crowdfunding websites such as Kickstarter and Indiegogo you can turn to. No matter which of these you opt for, finding the best way to present your idea is an absolute must.

Angel investors

Another great way to fund your start-up is to turn to an angel investor. If they like your start-up idea, they might be ready to buy a portion of it and help you get started. This means they’ll own a part of your business (sometimes even up to 49%) and make money when you do. Turning to angel investors is a common thing for rookie entrepreneurs to do, since it allows them to stay in full control of over their start-up. Moreover, most angel investors have plenty of experience in running a business and they might be able to offer you mentorship during your early days in the business world.

Business loan

Quite often, people believe loaning from banks is their only option. However, bank loans aren’t easy to obtain and they may not be worth taking a shot at. However, there are companies that specialize in giving start-up business loans to people with good business ideas. Just bear in mind that this type of loans come in all kinds of shapes and sizes, and you’ll need to choose the one that suits your needs the best. Moreover, turning to a private lender you can trust is extremely important, so make sure you meet them before you make any important decisions.

Partnership

Taking on a partner can also turn out to be an amazing idea. Of course, this is only the case if you find the right business partner. If you have a business idea, you might want to search for a business partner who can provide you with finances for your start-up. On the other hand, if you’ve already managed to find a portion of the money you need, you might want to look for someone with both finances and experience in running a business. Just make sure you’re able to trust your business partner before you sign any documents.

 

Friends and family

Many people don’t consider the idea of loaning from friends and family when starting a start-up. However, they’re the ones who’re supposed to have the fate in you, meaning that they might be able to help you out. This can turn out to be an amazing idea, especially because there are usually no fees for being late with your payments and in most cases there’s no interest rate at all. However, you need to bear in mind that money issues have high potential to ruin even the closest friendships and you shouldn’t loan from anyone close to you unless you’re sure you know what you’re doing.

Take a closer look at all of these options and figure out which one works for you the best. Once you’ve obtained financing, it’s time to start turning your start-up idea into reality.


Read other useful articles:

📌 6 Effective Ways To Attract Investors For Your Small Business

📌 How To Match Your Startup Stage To Investor Interest

📌 Why Raising Too Much Money Can Harm Your Startup


 

Want to get more on InnMind? 

Expertise and support in fundraising activities

Tons of promising projects interested to find new partners and investors 

Active investors and experts ready to support young entrepreneurs 

Useful tools to run your business and manage the processes 

Documents necessary to start and run a business  

Marketing services for new projects and young entrepeneurs 

and many many interesting publications and analytical reports that will help you to develop your startup!  

 

Note: Full or partial copy of the publication is allowed only with the direct active link to InnMind platform.

Top publications this week