Even though it is now easier than ever before to start your own business, that doesn’t mean it won’t take a lot of hard work. The entrepreneurial spirit is more alive now than ever before. With the advent of the internet creating hundreds of new business avenues and marketplaces. But this also means there is a lot more competition out there as well.
One of the biggest challenges budding entrepreneurs face is securing funding for their new venture. Money is the lifeblood of any business. Most new ventures will run at a loss for a considerable amount of time before they finally turn a profit. This is normal. But it means you will need to secure a lot of funding to get your business up and running.
Today we will be providing you with a brief guide on securing investors and funding. You will want to try as many different methods as possible to pull together all the funding you need.
How To Prepare
Before you find an investor you need to ensure you have done all the necessary prepwork. You will need to have a comprehensive business plan that includes what the investors money will go towards and your plan for recouping their investment.
Ideally you should also have scouted out some good locations for your business, providing it isn’t being operated from your home. You don’t need to have a property secured. But potential investors want to be sure you’ve found some suitable locations and they want to be able to take a look at them.
Investor Fairs
These go by a few different names. Investor fairs, startup conferences, business expos. But the premise is often the same across the board. Businesses set up a stall and meet potential investors. This is one of the most effective ways to secure funding.
Investor fairs are a nice informal environment where you can meet an eclectic mix of people. With such a diverse range of investors out there you are more than likely to find someone whose business values align with yours. It is also a great space to network with other businesses and learn from them. You should also take some time to network with veteran investors and see if they have business tips for you.
Forex Trading
Foreign exchange trading, often called forex trading, is a great way to bring in additional funding for your business while also helping you diversify your business portfolio. The best type of trading to do is proprietary trading, or prop trading. This type of trading focuses on making larger profits at a quicker pace as opposed to a gradual stream of low profits.
It can be quite confusing breaking into the world of forex prop trading. Which is why it is highly advisable to join a trading firm like Funding Frontier. On this forex prop firm and others like it, you will find a huge range of tutorials alongside a safe and user friendly platform to carry out your trading. Once you join a forex prop trading firm you will be working alongside a diverse team of other traders.
Crowdfunding
Crowdfunding isn’t a new concept but it only recently became popular due to the rise of Kickstarter. The idea is simple. Rather than securing one or two key investors a business can gain their funding from a huge collective of people. Crowdfunding is a fantastic option for businesses or ideas that are smaller in scale. Restaurants, video games, new products, websites.
Crowdfunding projects often provide rewards for investors as opposed to giving them a share in the business. Let’s use video games as an example. Game projects on Kickstarer will have different investment tiers that each offer more rewards. This could be unique in-game items or cosmetics. The investors name in the credit. Or even the chance to feature in the game as a voice actor.
Crowdfunding can be used alongside more traditional investment securing tactics. It is a great way to make up additional funds for smaller costs such as supplies. But keep in mind that crowdfunding only really works for businesses that are looking to provide a tangible product or service to customers.
