All big things in this world are done by people who are naïve and have an idea that is obviously impossible.
You have a really great idea in your head. You can feel it in your bones about how you can convert it into the next big thing. But, then the thought of the money monster stops you from nurturing this dream of yours. Well, we know how to tackle the green monsters, bring them out and tame them to be chummy and cordial.
Crowdfunding is a method of funding a project via the online medium. It incorporates the collective efforts of friends, family and individual investors as donations or investment in return for rewards or equity. There are many crowdfunding platforms like Kickstarter and Fundable, which provide ample opportunities for locating the necessary funds to begin your startup.
2. Angel Investors:
Angel investors are affluent individuals mostly entrepreneurs, who wish to invest thousands of dollars just to get a piece of the action. They are the exact opposites of venture capitalists and enjoy in receiving a small share of your company’s equity or returnable debt. Angel Investors not only provide you with the necessary finance; but also serve as valuable mentors as they share their experiences. Now, in order to attract an angel investor, you need to have passion and belief in your idea, which will be reflected through a strategic and well thought out business plan. Plus, angels can be hooked if they find that your idea shows early evidence of traction towards the plan and addresses market opportunities fully. You need to present reasonable terms, with appropriate valuation; as it will be a major factor in convincing them.
Protip: AngelList is a great platform offering a variety of opportunities for startups.
3. Business Incubators:
Incubators are sponsored by organizations, whose sole purpose is to nurture young businesses and support them by providing the essentials. These organizations include business schools, private companies, municipal entities & economic-development coalitions. They not only offer physical support by means of shared office space and equipment. But also numerous intangible benefits like mentorship, networking, financial and technical support.
Grants are also available to boost the startup ecosystem. They are nonrefundable sums of money hosted by governments, organizations, and trusts. Locating and securing a grant is understandably a tough job; but as they say,
“It might take a year, it might take a day, but what’s meant to be will always find its way.”
So don’t lose hope and keep persevering. There are sites aggregating federal funds on the web. Now, grants are available based on industry specification and your demographics. Plus, grant proposals are pretty extensive, so you need to bring out your inner writer forward to fill out application forms and other documents.
5. Revenue from New Services:
Entrepreneurs who do not wish to employ Venture capitalists or wish to own 100 percent of their company can gather funds through other means. It doesn’t need to be the mainstream of revenue down the road, but helps you sustain while your startup is growing. For example, our startup client Blendz Café was having a ricocheting beginning, owing to a shortage of cash flow. We did thorough research and suggested an awesome revenue generating idea. It entailed bartering products with neighboring restaurants and cafes lining the food street it was located on. This generated a good amount of moolah for them to smooth out their journey in the following months.
Conclusively, there are many avenues apart from the ones we have discussed. All have their fair share of upsides and downsides. As the captain of the ship, it’s your decision to find out the best possible option catering to your needs and priorities.
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