- January 27, 2020
- Posted by: Asheesh Sinha
- Category: Business plans, Funding
No matter what your business or product idea is, there is no doubt that you are going to need some start-up capital to get it going. Whether a small or large amount of money, there are three ways you can focus on raising the funds you need.
Get a Loan
You can go the traditional route and get a business loan. While the business loan option does require you to write a more extensive business plan to bring to banks, it will provide you with the opportunity to think about the ins and outs of products. It will also have you evaluate your competition in your market, giving you some excellent insight into other companies doing something similar to your idea.
If you do opt to go with a traditional loan, be prepared for a few rejections. Some banks may not be willing to take risks, while others are. Keep shopping your business plan around and a loan will come through.
Go to Kickstarter
You can crowdsource your funding via sites like Kickstarter. While this may seem like a great option, you should weigh the pros and cons of using a campaign like this to fund your idea.
There are many positives for using a site like Kickstarter. For instance, you are able to keep control of your business, have loyal followers, and get cash relatively quickly.
However, in a product review on Bespoke Unit, Rafael Dominguez says that many Kickstarter campaigns end up failing. You may have to educate your audience more about what crowdfunding is before you are able to have them participate. Additionally, many companies offer their kickstart donors some type of present as a thank you, which could raise your costs.
Apply for Small Business Grants
There is a plethora of grants and local funding available for all kinds of ideas. Part of your work time as you aim to raise enough money for your product should center around researching these specific grants and local funds that would align with your idea. While it might take longer for the funds to come through, you will have the money in hand to move forward with your project.
Instead of getting discouraged about not having the funds for your project, opt for one of these three methods of raising the money. You know you have a winning idea; you just have to do the legwork to make it happen.