Businesses have to raise funds whenever they are looking for ways to expand and try out new things. You can’t grow if you don’t have the money to make it happen, but what are the ways of getting hands on that money? Read on to find out about four essential ways.
If you are someone running a small business by yourself, it might be time to share that responsibility. Finding a business partner means handing over part of the business to someone else and letting them play an active role in running it. This is not something that many people like the idea of, but it doesn’t need to be a bad thing. When that person comes in, they will not only bring a lot of money, but also a lot of new ideas that will help your business to grow. Try to view it as a positive thing, and see if you can find someone who has the experience and expertise to help you.
Angel investors are slightly different to the kind of business partner discussed above. But, first of all, let’s start with the similarities. Just like any ordinary kind of investor, the angel investor will provide you with the money you need to help the business grow. In return, they will own a part of the business; the percentage they get will be worked out in advance. It should correspond to the size and value of your business. They are different because they offer coaching and support from a business point of view. They are always people who have owned business in the past and have already achieved success with their own companies. And they tend to only want to invest in relatively young businesses.
One conventional way of raising funds is dividing up stock and selling the shares to investors. This is similar to the other kinds of investment mentioned above. But these investors tend to make smaller investments, and there will be more of them. On top of that, they won’t have any direct input in how the business is run. This is why it is very appealing to many people; they don’t have to put up with any interference. There’s plenty of info online about how to issue more shares in a Ltd company.
Crowdfunding is still pretty new. A few years ago, this didn’t even exist, and it wasn’t an option. These days, crowdfunding is used for all kinds of projects. It can be used to fund an art project, make a movie or improve a business. But you will need to make sure that you have a base of loyal customers who will be willing to put their money into the crowdfunding effort. If no one wants to find what you’re doing, then the whole endeavor will simply fail. So, show people what is in it for them if they put their money into your business. They have to be getting something in return if you want to persuade them.
Founder Dinis Guarda
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