You have a great business idea, a rock solid business plan, and an analysis of your target clients. All you need is funding to turn your business plans into a reality. That being said, financing your business should not only come own personal investment. Diversifying your financial resources show that you are an innovative entrepreneur, who doesn’t rely on putting all your eggs in one basket. Here are the top funding options for business start ups:
Secure a Bank Loan
Funding for start ups begin with a bank loan, but be aware that banks do not cover all your projected business expenditures. You have to get some funding from other means. For instance, you can opt to get a commercial property loan with the primary purpose of securing your desired office space. This small commercial property loan funds only a small portion of your business expenses so the chances of approval would be higher. You can get another loan elsewhere for your inventory list. Remember, you need to have good credit or ask another entrepreneur to guarantee your loan to get approved by a bank.
Get a Government Grant
The government encourages business start ups, so they provide financing such as grants and subsidies. The Australian government wants to help boost the economy through entrepreneurs that provide employment and avenues for trade. Check the Australian Industry Website for a comprehensive listing of various government programs that can help your business grow and succeed.
Seek Help from Alternative Lenders
you’re a new entrepreneur without much credit history, then getting approved for a bank loan is bleak. Seeking assistance from alternative lenders or non conforming lenders is an option if you have poor credit rating, you’re a new migrant, you have an unusual income stream, or your need a specialized loan. Non conforming lenders offer loans that do not follow the traditional lending criteria of banks. They have less requirements and faster approval rates. Examples are pay day loans, secure loans, personal loans, and the like.
Tap an Angel Investor
You’re not praying to an angel here for a miracle. Tapping an angel investor means asking for help from high-net-worth entrepreneurs, who have an extensive track record in helping start ups. There are numerous angel investment networks online, so do you research and then begin pitching your proposals. The main issue here is making sure that you can convince them that you are worthy of their investment. The beauty about this funding source is that you if you are granted their financial support, you also get to tap their knowledge base. Being expert entrepreneurs mean they have a lot of wisdom to share, along with their capital.
Ask Family and Friends
Asking help from family and friends should be your last resort because many people judge that this act is distasteful. However, many successful entrepreneurs admit that they have gotten their big breaks because of the help from their loved ones. Who else will help you when you’re in dire straights but your family and friends, right? Just be cautious in soliciting help from family and friends by making sure you never default on payments, so it doesn’t lead to domestic squabbles and strained relationships.