When you’ve got a great idea for a start-up, plans drawn up and a team assembled, you’ll want to get started working as soon as possible. Yet there can sometimes be one major factor holding you back at such a critical point: finances. Raising funds to get your start-up in action can often only happen once your idea for a business is well-developed to attract investment and can still take a while. There are options to speed up funding your start-up.
Use Angel Investors
An angel investor is someone looking to invest in upcoming start-ups to help get them off the ground, not necessarily for future personal financial gain. Most will provide one lump sum of starting capital to do so, supplying the funds required in a quick manner. Some angel investors work together in groups or network individually, to screen proposals before deciding to invest or not. Compared to a lot of other lenders they offer more favourable terms, plus they can provide useful business advice, ideal for those entering a less than familiar industry.
Seek Start-up Accelerators
Similar to angel investors but usually on a larger scale, start-up accelerators specifically invest in new businesses believed to have a chance of success. Business incubators offer services along the same lines but for the quickest funding method accelerators are the best choice. They provide the funds to get started along with help and advice to really kick-start the new company in a few months, whereas incubators take things a lot slower. The likes of DropBox and AirBnB all started out with accelerators and have done fairly well.
Scalping and other active trading methods provide the quickest way to profit from price movements across many financial markets, from indices and precious metals to the forex market. Create a trading plan that fits in with the timescale you have in mind for raising funds and choose the markets you wish to trade upon. A certain amount of starting capital will be required to invest, but if everything goes well then this should soon be recouped to reinvest in your own business, with few other costs involved for you to start trading.
A good tactic for securing enough finance to get your business started is to request less than you actually need in the first place. Banks are far more likely to provide a loan quickly if you only request £5,000 rather than £10,000 for example. Mix it up by using a range of sources for getting the required starting capital and asking for lower amounts to add it all up.
Improve cash flow by arranging pre-sales for your products or services, which will also grow the initial funds your business needs to get going. Major companies such as Apple and Samsung regularly create pre-sales for their products before they are officially launched. This also allows you to work out consumer demand and avoid overspending on materials and overheads, for example.
These tips will help speed up the initial funding for your start-up so it can quickly be turned into a reality.