/Content/TrackAppMedia/ContentWhatApp/3511c0deb40e48f582b5119d5dc0ad80-11-06-2020-19-31-32.jpeg

Pakistani Aunties

Pakistani Aunties

How to Get a Funding for Your Startup Business ideas

Family friends and fools

Many investors won’t treat you seriously if you don’t manage to convince people close to you that your business idea is sound. It is quite rational because getting your relatives and friends on board is one of the easiest and most popular ways to get funding for your startup.

Be honest with them about the possibility of a failure. Most startups fail and even if you are hundred percent sure you will succeed, don’t hide the possibility that they may never get their money back. Some of your friends may have an experience or connections needed in your business. They are just as useful as money, so remember to try to ask them to share them with you.

Show them a passion for your plans. People close to you can easily see through you and know if you are serious or just took a new hobby. You should also remember to not ask for more than they can give you. Guilt tripping your friends is a sure way to strain your relationship with them, which will be twice as painful if the business fails.

In some countries giving money to your friends without interest rate is seen as a gift and the money is taxable. Even if your friend does not want to have a return of investment from you, you still should offer one.

Personal funds

Most of new startups are bootstrapped. This way of collecting funds usually will not bring you loads of money and will take time and sweat, but at least those funds are entirely yours. You won’t need to trade the part of your company for it. You won’t need to beg your uncle for money. You won’t need to force a smile for the investors.

You will have a full control of your ship, without any outside obligations to other entities. No one will try to take control away from you.

To gather your own private funding, you need to both work more and spend less. The details of it depend too much on your personal abilities, profession and time. If you work is well paid it will be much easier to save money. If it does not pay well, then you still may try to finance at least a part of your company from the savings.

Bank loan

Getting money from the bank may seem the most logical and easiest way of getting funding. The problem is that banks do not lend money to startups very often. They are afraid that the business will go bankrupt and they won’t get their money back.

They are not worried of lending money to well established entities with a proven track record and a good history of bringing in a good amount of cash, but they rarely trust entrepreneurs.

You can still try to apply for a loan. In some cases, the bank may trust people with a good credit card history and if you have some assets which can be liquidated to pay the loan back, then you have a shot at convincing the bank that you can be trusted with their money.

 

Crowdfunding

Crowdfunding is an excellent choice if you are sure there is a target audience in a big need for your product. This way of financing is good both for newcomers and people with a good track record. It also yields many additional benefits other than money. You may want to our series of articles about it, which explain how to get funding for your startup in great detail by using crowdfunding platforms.

 

How Whatsapp Group Impacts the World

That’s all for this post. I hope you find it helpful. Feel free to drop any queries, doubts, or suggestions regarding anything mentioned above in the comments section

Disclosure: whatsapp group has denied all reports of a data breach saying that all user information, including their financial data, is safe and securely stored on its servers.

Write Your Reviews