While many have dreams of starting their own business, the daunting thought of obtaining the initial funding to get it off the ground can stop entrepreneurs before they ever get started.
However, that doesn’t have to be the case. There are numerous methods for obtaining startup capital if you’re willing to put in the time and effort to prepare a solid business plan and pitch.
Here are a couple of the most common ways to obtain funding for your business.
You may have heard of Silicon Valley VC firms investing in startups for the next big app or piece of software, but VCs fund businesses and startups in a wide range of industries.
These firms typically offer startup capital in exchange for an equity share in the company. They are looking for thoroughly developed business plans that minimize risk and maximize their return on investment.
If you are seeking VC investment, be sure to do your homework and practice your pitch as you will need to convince a board of advisors to vote in favor of supporting your startup.
Similar to Venture Capitalist firms, Angel Investors are typically wealthy individuals who look to invest in startups with the hope of obtaining a higher ROI than traditional investment opportunities.
They are often former entrepreneurs themselves, so they understand the process of starting and running a successful business.
With Angel Investors, you generally will just need to get the backing of the individual as opposed to a board, and you may find they have more to offer in terms of practical industry experience.
While not the most common method for funding a startup, banks or other lines of credit can be effective in certain situations.
If you have an excellent credit history or other assets you can put up for collateral, small business loans or personal loans can help you fund initial business expenses to help you get off the ground.
Even if you are denied by your first bank, don’t give up! There are plenty of other options out there who might get you approved!
Funding Your Business With Bridgeford’s Help
With extensive experience helping businesses get funded from a variety of sources, we can help you take your business from the idea stage to the next level.
If you need help funding your startup, contact Bridgeford today.