Many aspiring entrepreneurs have a great business idea but the lack of funds dither them from implementing it. The long yet exciting journey from the idea to return-generating business needs a fuel named capital. However, finding the money is not that easy and for most people, this process is very frustrating. Shannon Pigram a multi-talented Australian business pioneer with an extensive background in Human Resource says that the reason for this could be a combination of wrong expectations and looking for money in all the wrong places. In today’s hostile economic environment funding a start-up can require thinking outside the box. Often small start-up businesses need to utilise more than one source of financing to get the new business off the ground. His detailed research work on this aspect can be seen on YouTube.
Shannon has worked for various organisations and helped them secure funding through his strategic planning and innovative thinking. Visit wesrch, Vimeo and his LinkedIn profile to learn more about his strategic planning. He spends significant time in organisational development and learning, with a specific enthusiasm for talent management and employee engagement. You can get to know more about him by reading Shannon Pigram biography.
Here are some of the resources you might want to consider.
- Bootstrapping or Self-funding
Self-funding is an effective way of financing your start-up as first-time entrepreneurs often have trouble getting funding without first showing some traction and a plan for potential success. You can invest from your own savings or ask your family and friends to contribute. This type of funding is easy to raise due to fewer compliances, plus less costs of raising. In most situations, family and friends are flexible in providing the interest rate. So, self-funding or bootstrapping should be considered as a first funding option. When you have your own money, you are tied to the business. On a later stage, investors consider this as a good point, however, this is suitable only if the initial requirement is small.
- Online Lending
In the recent years, online lending has become a popular alternative to traditional business loans. The online lending platform has made the process of getting the funds easier and faster as the application takes only about an hour to complete. However, there are hundreds of online lenders, which can be overwhelming for the small business owner looking to secure working capital. What small business owners need to do here is do extensive research and then choose a reputable lender that will help them the right financing option.
- Crowdfunding Campaigns
Crowdfunding is one of the newest concepts of funding a start-up and has been gaining a lot of popularity lately. Unlike the traditional avenues, it’s like taking a loan, pre-order, contribution or investments from more than one person at the same time through an online platform. There are two main crowdfunding methods, one is reward based and the other is equity based. The reward-based crowdfunding works by offering a product or service as a reward to people who give a certain amount of fund to your business. The funds acquired are for a specific purpose and that purpose should be given at the beginning of the campaign. On the other hand, equity based crowdfunding is the process where a large number of people provide money to a business in return for shares in the company. The best thing about crowdfunding is that it generates interest and helps in marketing the product alongside financing.
Finding financing when you are starting a business can be difficult, but the options mentioned above will help you out.