Given the changing dynamics of the world, the increased requirements of services and products worldwide and our increased dependence on digital platforms making running businesses easier and making global markets more accessible, the number of entrepreneurs and business start ups across Australia have increased significantly in the last decade or so.
But with that, the competition has also increased and it has also become difficult to properly establish a business without having proper funds. This requirement for raising funds for business start ups have introduced various ways of business funding such as venture capital firms and crowdfunding platforms. If you are looking to raise capital for your start up and you don’t know where to start, here’s what you can do to establish your business.
- Crowdfunding: If you are not familiar with the concept of crowdfunding, let us explain it to you. Crowdfunding is basically like taking loans in small amounts from a large number of people against a business plan. There are countless popular crowdfunding platforms operating worldwide. From normal people to businessmen and billionaires, everyone funds the project of their liking with whatever little or more they can offer. All you have to do is create your profile and make a descriptive post about your business, preferably make a video as well. Tell the people what’s your goal with the business and explain your product/service in detail. Also list down the finances needed, growth projections and your strategies. Set up your bank account with this proposal and if people like your proposal, you will start getting funding from around the world.
- Venture Capital Firm: Venture Capital firms are another great way to raise capital for your business. VC firms usually seek entrepreneurs and business ideas with potential of massive profits. They invest in the business against share in the profit or an equity. If you think you product/service has the potential, send proposals to venture capital firms to raise capital.
- Angel Investor: Many people are also interested in investing money on new technology or businesses that promise stable profits over a long run. Look around your friends, family and colleagues to find a potential investor. The best part about an angel investor is that he is not concerned with the operations of the company usually, and doesn’t interfere as long as you deliver what you promise and keep the profits rolling in.
- Bootstrapping: With a boom in digital marketing and E-Commerce, setting up remote companies has become quite easy. You can always start slow with your own savings and create a minimal investment start up and eventually grow it through the revenue you earn.
- Bank Loans: If you have a good credit history and you have been earning for a while now, you can also apply for bank loans in order to raise capital for your business. Banks usually provide two types of financial assistance to businesses. The first one is capital loan, which is granted only to run the first running cycle of your business until it reaches revenue generation. The other one is funding which involves the usual business plan and projections to be shared with the bank.