Funding a new business2nd March 2017
Starting up a new business can be a daunting task, but also exciting in equal measure. At such an early stage, trying to pull off a new business venture can be full of mystery and drama. However, as you progress and develop you’ll often wonder ‘Where will it go?’ or ‘How big will it become?’. Regardless of whether it’s based around something innovative or already in existence, to keep progressing you need to tread carefully and mind which areas you choose to assert your focus.
Unfortunately, there are no easy answers for how you should run your business, but I can tell you how to secure additional funds. To keep your journey continuing ever onwards, finding a source of external funding is crucial. Your business must grow, and grow fast. But being so early in development, this task can be extremely trying. It is not, however, impossible. Remain steadfast with a staunch determination and you will find a way. Two of the most popular forms of funding for start-ups are Crowdfunding and Peer-to-Peer lending.
Through an online platform, you can appeal directly to large groups of investors. In order to coax and convince them that you’re worthy of their time and money, you must show both competence and passion about the products or services your business hopes to offer. One way of doing this is by releasing highly informative videos of you and any joint partners discussing your business proposal whilst showing why they’re the right people for the job. Do it right, without over-embellishing your figures and key points, and you’ll be on your way to a successful future. In exchange for their money, you could offer equity in your business or something else that may pique their interest.
Just like Crowdfunding, you’ll, again, be appealing directly to large groups of investors across a platform using the same methods. However, instead of offering equity the platform will compile their money into a single loan. Now, just like any other type of business loan, you’ll be required to make monthly repayments directly to the platform until all the investors have been repaid, plus interest. Due to the nature of Crowdfunding and Peer-to-Peer lending, there is no limit to how much you could acquire, all that matters is how enticing you are to potential lenders.
As your business develops and grows into 2 years of maturity, the amount of funding options available to you will be much, much wider, thanks to the Alternative Finance industry. However, with so much choice finding the perfect finance solution that will allow you to continue your journey can be bewildering. However, if you feel lost in a maze of finance providers, help is at hand.
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At Rangewell, our services are clear and transparent. We support a wide range of SME businesses of every shape and size, for finding every type of finance. Follow us on Twitter and LinkedIn for business tips and tricks, and feel free to call us on 0203 637 2340 if you’d like to chat about what we can do for you.
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