Many people who dream about becoming an entrepreneur, fall short when it comes to funding plans for the proposed business. With the perfect business plan drawn up to go with the right mental capacity and drive; venture capital becomes the final missing piece in the jigsaw to building the enterprise. But many aspiring entrepreneurs know there are a few other viable funding plans they can explore, besides the traditional loan institutions and methods.
There are several other ways start up CEOs can fund their business. In most cases, you need to have established financials, proven records and sufficient funds or assets to use as collateral.
If you’re looking for secure and valuable alternative ways to fund your business project, then you should check out these ideas.
- Online Lending
As of late, online lending has become increasingly more popular in comparison to traditional business loans. And that’s because they come with the extra advantage of speed and low interest rates. An online loan application can take less than 2 hours to process and the final decision and eventual release of funds (if application is successful) can be completed within a few days. Forecasters are predicting that the online lending market could reach an estimated sum of $500 billion in loans issued by 2020.
- Angel Investors
Angel Investors are wealthy individuals who are interested in small businesses and startups with a lot of promise. An angel investor typically provides businesses funding in exchange for ownership equity in the business or a convertible debt. Think Dragons Den. In various cities around the world, angel investors often form an Angel Network. Which lay down procedures and processes for start-up CEOs and small business owners, who want to apply for funding of their business venture.
- Retirement Funds
Funding your business project from your retirement savings might come off as a risky venture, but records show more business owners who have attempted it have had success. Besides, it gives you greater control over your business and you can easily and quickly explore growth opportunities. You can even combine loans with funds from your retirement fund, as well as other funding options to give you greater flexibility.
Many budding entrepreneurs have turned to crowdfunding to bring their business dream to life. This option offers little risk to new and small entrepreneurs; and you can practically raise money for whatever size or type of business project using sites like Go Fund Me. All you must do is create a persuasive campaign and share it with friends and family; then sit back and let social media do the rest.
Depending on how brilliant or effective your campaign is, you could even reach your funding goal within a few hours. Once you’ve hit the financial target you’ve set, you can start the process of having the funds transferred to your bank account or request to be issued a cheque by the website, which will only charge a small fee for their service.
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