3 Ways To Raise Capital For Your Startup Business

Collaborative post – may contain affiliate links

Most startup businesses require some form of capital to launch. To a degree the saying that ‘you need to spend money to make money’ is correct depending on the industry and scale of business you are hoping to achieve from the offset. Coupled with considering the marketing and sales resources, you’ll need to drive sales. 

The process of launching and running a successful small business can be costly. But before you decide to put your dream of owning a sports leisure center, an electronics retail store or a nightclub on the back burner for another, better, time. You should know that there will never be a perfect time to launch your business, and your financial situation will never feel truly comfortable enough for you to begin your company. And so it’s worth overriding your fear of how you will gain your business finances to look closely at your options so you can set your business plans in motion. In no particular order, here are three options you might want to consider.

Crowdfunding

Presuming you’ve set up your business plan and are clear on how much capital you need to start your business, consider whether your idea is compelling enough to attract multiple small investments in the form of crowdfunding. Take a look at crowdfunding websites such as IndieGoGo, Kickstarter and Rocket Hub to see if you meet the criteria of startup ideas they are looking for. Sourcing crowdfunding is highly competitive, and so you need to have a clear, attractive pitch to display to your fellow crowd funders to convince them to invest. To help you get started, browse other startup projects on crowdfunding sites to see what kind of concepts and marketing approaches seem to be successful in gaining contributions.

Startup Business Loan

As with applying for crowdfunding online, you may need your professional business plan to hand to show potential lenders your well thought out business idea. This shall demonstrate to lenders whether or not your idea is viable, and whether your business has the scope to make a return so that you may pay back the startup business loan in the future. To get started, research banks and loan companies who tailor their services to startup businesses, to find who offers the sum you are looking for with a competitive interest rate attached. Also, pay particular attention to the terms and conditions of each loan to find one that is best suited to your business. Another tip is to never borrow more than you actually need. 

Bootstrap Your Business

If crowdfunding and loans are not for you, an alternative way to launch your business is by bootstrapping. This term refers to starting up your company on whatever savings you currently can afford to invest. Then, when the business grows and yields a return, you use this and put it back into the company. This makes financial sense for those worried about the prospect of lending money. However, depending on the business you are hoping to create it could also stunt your growth, as you need to continuously wait for a profit before you can invest back into the business. 

Other alternative ways for you to make capital for your startup business are to; spend some time working and saving the amount you need or seeking financial support from family and friends. Alternatively, you can look at other sources of borrowing, such as your overdraft facility and credit card options.

Optimize Startup Performance For More Efficiency

Funding And Cloud Optimization

Obviously one of the best ways to increase your startup’s performance is going to involve using funding solutions from crowdfunding sources and other similarly-aligned options. But you can’t predict what kind of funding is going to come in from such options.

So you can’t depend on it. While crowdfunding is a great way to help ensure your startup can go where it is designed to go, it’s not 100% reliable. More reliable options involve streamlining existing operations so that they can be handled with the littlest loss of expense.

Another way to optimize operations is through time sheets. If there’s one thing that holds true for almost all businesses, it’s the fact that they need a way to track how much time their employees are spending on work. Traditionally, Excel spreadsheets have been the go-to option that many businesses prefer for time tracking.

If you’ve ever used Excel, you know that it can be convenient, and it can also be ridiculously complicated for no discernable reason. Solutions which outsource the complication through cloud-based application innovation save time and money while expanding mobility. Time can be tracked accurately remotely, and without the same hassle traditionally associated with Microsoft Excel.

Advantages Of Modern Tech

Such solutions reduce operational expense. Instead of having to hire someone to keep track of payroll, or spending hours doing it yourself, with a few clicks of the mouse, the job is done.

You’re likely not going to have resources for the necessary employee support your startup needs. You’re going to have to do a lot of the “busy work” yourself, until you build up requisite momentum. Using things like cloud-based applications to optimize your business will save time, money, and keep emotional strain from guiding you into poor decisions.

Application Monitoring

Something else that’s considerable in the modern business environment is the creation and monitoring of applications which have been put together for your business. These applications could be designed for sales, for information, or just for client convenience—a real estate agency with a mortgage calculator and a property finder app on its website can be quite valuable to your target market.

But if you’ve got such an application, you will have to deal with errors. Error-monitoring features come built-in to certain logging frameworks.

When you can continuously monitor your applications, the moment an error crops up it can be rectified. Older methods of monitoring require physical observation. That takes time, and won’t be as effective—sometimes errors can persist for a long time without being detected. Automatic detection solutions catch them regardless.

A lot of the technology covered in this writing so far is facilitated via cloud computing solutions and using such cloud innovations to your advantage. This is a great way to gain competitive edge as a startup. You’re going to have the ability to compete with larger businesses with the cloud. It can provide you the same or similar utility an on-site server can for a fraction of the cost.

Everything Together

Cloud computing can allow you to use Big Data to identify and apply trends as they develop and transform. Additionally, cloud computing can help you to institute and utilize IoT (Internet of Things) solutions which help you see where costs can be curtailed and services optimized.

Have you heard of edge computing? This is like a personal cloud for your business that uses IoT devices instead of servers. Substitute IoT devices for servers, and you understand edge computing. This kind of data transferal and processing is going to increase in size and applicability with time—getting in with such cutting-edge trends now is a wise move for your startup.

Lastly, you do not want to bite off more than you can chew. You want a contingency plan, you want to take steps that are going to make you money, and you do not want to get involved keeping up with the “Joneses” of other operations similar to your own.

Focus on optimizing what you have as best you can, and you’ll likely see profitable results over time. The best thing you can do as a startup is to provide good products and services cost-effectively, and in an organizationally optimized, cutting-edge way.