Whether you are the owner of a small business or a he international corporation, cash is, and always will be king and it is here that you must lay all of your focus. It is a well known fact that around 56% of new businesses fail in their first 3 years and of those that survive, around 42% of them will fail before year 5.
As my friend Keith Springer always says on his radio show, the biggest reason behind those failures is either a lack of money or financial mismanagement and i you are looking at entering into the world of business, you are going to need to start off on a very solid financial footing so that you can best guarantee your success in the industry that you are moving in to. In order to do this you need to make sure that your business idea is properly funded and here is how you can go about getting the funds to get you off the ground.
Seek Out An Angel Investor
An angel investor is someone with money who seeks to find startups and new business which they can invest a small amount of money into (small for them admittedly) and look to turn it into a success. You must be able to convince an investor why your idea is the one that they should be investing in and you will need to show that you have a clear plan for success. In exchange for the investment you will likely have to give up a small percentage of your company which means that whilst you do lose some ownership, you will not have o pay the money back.
Go For A Bank Loan
A bank loan is a great choice for many people who are looking to get funded for their business idea and banks have been helping new companies since the beginning of time. In order to secure alone from the bank you will need to provide some collateral which will protect the bank’s interests and you will also need to show them that you have a business model founded in facts that shows a clear path for the success of our business. Bank loans are favorable in terms of their repayment schedules and much of the repayment will be weighted towards the end of the loan term so as to give you the best chance of success in your early years. Banks can also provide you with a business specialist who can help advise you on how to make it a success.
Look Out For Grants and Funds
In many industries there are grants and funding schemes which have been set up by governments or private institutions so that they can help to encourage more startups to get themselves off the ground. It is unlikely that these cash injections will give you all of the money that you need to get started but they can be a great contribution to the start of your business.