Finding funding for a new business idea can feel challenging, but you shouldn’t let that put you off. In 2018, statistics show that the combined annual turnover of SMEs was £2.0 trillion, 52% of all private sector turnover. There is evidently a great deal of money to be made through entrepreneurial enterprise, and with a multitude of ways in which you can acquire the funds your business venture needs, what’s stopping you?
Crowdfunding
Crowdfunding won’t be the funding option for everyone, but in recent years an increasing number of businesses have successfully funded the creation of new ideas through crowdfunding websites such as Kickstarter. In fact, Kickstarter crowdfunding statistics show more than 22,000 projects were successfully funded last year. In order to generate enough public support and enthusiasm, proposals generally have to offer something new and exciting. It is a common misconception that crowdfunding is entirely donation-based, when in actual fact the majority of crowdfunding is actually reward-based.
Whilst a large number of businesses and entrepreneurs have managed to receive funding, it is important to note that a successful campaign isn’t always easy. You must choose your platform and target audience with careful consideration and be sure to put enough time into your pitch so that it is attractive enough to gain public support. It can also take a long time for funding targets to be reached, so if you need money in a hurry, this might not be for you.
Invest your savings
If you are fortunate enough to have savings, then why not put them to use rather than having them sit about in the bank, generating only a minimal amount of interest. Often people are reluctant to chip into their savings, but if you are confident enough in your business vision and have done your research into the market thoroughly, you should jump at the chance to invest your savings into something that you are passionate about.
Seek support from friends and family
If you pluck up the courage to ask, you may just find that you are fortunate enough to have friends or family members who are willing to support your first business venture. Consider offering them a small percentage of your profit until the money they lend you is returned to them in full, or even consider taking them onboard as a long-term business partner if they share your enthusiasm and drive.
Credit cards
Credit cards are a quick, easy and one of the most obvious ways to acquire extra cash flow. In the majority of cases, you will be able to borrow much less with a credit card than what you would be able to get from a loan or a cash advance, due to the amount you are able to obtain being based on your credit limit. However, if you need only to borrow a small amount here and there, this shouldn’t be too much an issue for you. The generally high interest rates associated with credit cards means you should use them with care, but so long you are sensible, they can be a great financial aid in getting your first business venture up and running.
Merchant cash advances & unsecured business loans
In recent years, it has proven increasingly difficult for small and new businesses to get loans with the banks. Fortunately however, there are alternative loan options out there, which SME Loans can provide you with. They offer merchant cash advances, as well as unsecured business loans, both of which are fantastic funding options for anyone looking to start up a new business. Both are quick and easy to apply for; the application process can be filled out entirely online in the space of just a few minutes, and once your application has been approved, you can expect to see the funding in your account within as little as 24 hours. A merchant cash advance is offered to you on an interest free basis, and the repayment scheme in especially flexible and accommodating to the borrower. An unsecured business loan offers its borrowers the advantage of not having to secure the loan against your business’ assets, such as property, stock or any equipment. Both an unsecured business loan and a merchant cash advance are perfectly suited to a newly established entrepreneur.
Whilst starting up a new business can be a daunting and overwhelming prospect, there are numerous funding options out there to make your entrepreneurial vision easily achievable. Research the market thoroughly, draw up a detailed plan of action, and carefully decide on which funding options, or combination of funding options, is going to work best for you and your new business.
