Having a million-dollar business Idea is one thing and to be able to actually bring that idea to life is an entirely different ball game. Majority of the Business Ideas remain as ideas and one of the topmost reasons for those ideas not seeing any daylight is the scarcity of funds. If you are on your own and if you don’t have enough savings, it is a massive task to find funding for your Innovative Business Ideas. Given below are the Top 5 ways you can find funding for your Innovative Business Ideas.
Explore the Crowdfunding Landscape
In simple terms, “Crowdfunding is the practice of funding a project or venture by raising small amounts of money from a large number of people”. In the digital world, crowdfunding has become one of the most attractive funding mechanisms. Be it Kickstarter or IndieGoGo, thousands of business ideas are getting funded on a daily basis on these crowdfunding sites. You don’t have to be technically sound in order to gain supporters for your pitch. All you need to do is launch an attractive campaign in which people believe.
Try to attract Angel Investors
Angel Investors are those affluent individuals who provide capital for a business start-up, usually in exchange for convertible debt or ownership equity. Approaching Angel Investors in order to raise capital for your business startup means you need to have a solid business plan ready. One of the biggest advantages of approaching an Angel Investor is that most of these investors are high net worth individuals who have tons of experience in the business world. Once they agree to invest in your idea, you will probably benefit more from their wisdom than the actual fund you will receive. Nevertheless, funding is very crucial and angel investing as an investment mechanism has become popular over the last few years. Moreover, nowadays, there are several websites which facilitate the interaction between fund seekers and Angel Investors.
Try for Venture Capital
Venture capital, in general, is a form of private equity, a type of financing that is provided by firms to emerging firms that are deemed to have high growth potential. You will need a specially designed business model in order to attract Venture Capital firms. VC firms invest in a few different companies for their clients and hope to make money off of one of them to pay back their client’s investments. If you’ve decided to seek VC money, it’s time to leverage your network to see who you can talk to. Venture capital funds have a short shelf life. It means that they generally seek to recover their investment, turn a profit then move on to the next fresh start-up.
Participate in Contests
There are various Startup events taking place through the year offering huge sums as prize money. If you believe that your business idea has the potential of becoming the next big thing, you can consider participating in these contests. The biggest advantage of participating in these contests is that your contacts will grow significantly. In the world of business, contacts can make a world of difference. Some of these events offer thousands of dollars in prize money.
Avail the credit opportunities provided by Microfinance Institutions
This option can be explored by you if you believe that your credit score does not allow you to take the advantages of getting funds from traditional financial institutions. Many Non-Banking Financial Corporations (NBFCs) are willing to give loans to individuals normally deemed high-risk as such organizations exist to promote financial inclusion and cater to the needs of under privileged. Even though the amount you will receive will be pretty low but this is especially advantageous for low-income people as there is no need for assets and the interest rates are pretty low.
