This is a user generated content for MyStory, a YourStory initiative to enable its community to contribute and have their voices heard. The views and writings here reflect that of the author and not of YourStory.
5 practical ways to raise business funding for your startup
This is a user generated content for MyStory, a YourStory initiative to enable its community to contribute and have their voices heard. The views and writings here reflect that of the author and not of YourStory.
Small businesses make up 99.7 percent of all businesses in the United States, according to the U.S. Small Business Administration (SBA). So, you’re in good company as you embark on this journey.
Execution is what differentiates a great thinker from an entrepreneur.When you start an online business, there are hundreds of questions that need answering. How much money do you really need to start a business? How do you register it with the government? How do you build a website? Who’s your target customer, and what tactics and messaging should you use to reach them?
The first step is to determine how much money you’ll need. understand all your costs including expenses, like market research, advertising, training, wages and consultants, and capital expenditures like inventory, property, and vehicles, according to the SBA’s “How to Estimate the Cost of Starting a Business from Scratch.” Assess your assets that can be used to operate during the startup phase of the business, and do the math. But innovation comes at a price. Whether growing, processing or distributing food, these companies require hefty investments in land, warehouse space, test kitchens and processing equipment—not to mention payroll and other standard overhead categories.
Today, business owners have a lot of ideas. They know how to implement those ideas to get their business going. However, the problem is that starting a fresh business requires a good deal of money. And finding investors and getting loans is no easy job. Given below are a couple of tips to help you get funding for your startup.“Business is its own wild animal. One wrong move and it can eat you alive,” writes turnaround specialist Chris Baskerville in his Quora article The Top 5 Reasons Startups Fail. Here, we’ve tackled each of these top pitfalls, along with our take on how food companies can best position themselves to circumvent them.
10X your pitch. Instead of saying, “I own a small web design company,” say, “I own a web design company like no other. We guarantee your company increased sales.” Notice the difference? The first makes you seem small and insignificant and easily ignored. It makes no claims—it has no hooks. The second makes you seem confident, unique and capable of being a moneymaker. Know how to pitch yourself and your business, be ready to quickly explain what your company does and know how to tell people it is better, faster and adds real value to the marketplace—then make huge claims to the world. Make sure they don’t forget who you are
Consider your niche
If your idea has something special, you may find it easier to get funding. As a matter of fact, there are grants that are given to specific business ideas only. So, if you have a solid idea, you may find it easier to apply for a grant.
You can also gain another benefit if you define your niche. As you apply for funding, make sure you summarize your niche in a few words. This will help you set your business apart from your competition.
Look for a grant
As far as looking for funding goes, the best thing is a grant. You can get money free of charge and this money can lift your business. The fact of the matter is that locating and getting the grant is a hard nut to crack. But if you don't try, you won't be able to get the required money.
Actually, grants are based on the demographics and the business theme. For instance, grants are given for women, minority business owners and so on. So, if you want to apply, all you have to do is clean your keyboard and begin typing.
Go for a contest
Entering a contest is another way of getting funds for your business. For instance, the Amazon Web Services Start-up Challenges offers rewards on an annual basis. In the same way, MIT also offers a considerable amount of rewards.
If you want to increase your chances of getting success in these contests, we suggest that you look for ways to make yourself more prominent.
Crowdfund your idea
If you want to get funds for your startup, we suggest that you check out sites, such as Indiegogo and Kickstarter. Over the past few years, Crowdfunding has increased in popularity and has got immense attention from businesses as well as investors. And this popularity has resulted in an increase in competition. So, if you can make your business stand out from the crowd, you can achieve success and beat the competition.
Take a loan
If you have a small business to run, you can apply for a loan. You can choose from different specialized options, such as loans and microloans. If you don't want to get a bank loan, this option is an ideal one.
But if you have made your mind to get a bank loan, you may want to have the maximum amount of details about your business. In other words, you have to let the provider know how you will pay the loan back. Ideally, it's a good idea to try a community-based bank first.
It does not take a rocket scientist to get a grant for your business. All you have to do is come up with a solid plan and hone your pitch. This will increase your odds of getting success.
