Tuesday, June 18
Startup Funding | Smart Tips For Getting Funding For A Startup
Locating and securing startup funding can be challenging to say the least. Even if you have a great business idea, loads of industry experience, excellent credit, and high-quality references, getting funding for a startup often causes much stress and anxiety. For many aspiring entrepreneurs, it is an elongated, confusing process.
This article offers some practical advice for anyone seeking business funding for a startup. It reviews several common startup funding options and describes some of the most common obstacles that prospective borrowers face.
Types of Startup Funding
Entrepreneur Magazine, Forbes, QuickBooks, and other expert entities recommend various methods for obtaining startup funding. Some of the most feasible of these are:
● Grants from other businesses
Each of these methods for getting startup funding is associated with obstacles. Every funding source has its own requirements for borrowers. For most people, the biggest hurdle is finding a lender that offers what’s needed and has doable requirements. Many businesses lack the profitability, time in business, or credit rating to get the startup funding they need to grow their operations.
● Traditional bank loans
● Peer-to-peer loans
● Venture capitalists
● Loans from family
● Personal savings
● Angel investors
● Credit cards
Startup Funding Obstacles
One of the largest obstacles of getting funding for a startup is matching up with a lender that is well-suited to help you meet your business goals. It’s going to take a lot of research on your part. You have to locate investment firms, and then, determine how serious each is about helping you get the startup funding you’re after.
One of the best ways to prepare for the communications and personal meetings it will take to secure funding for a startup is to develop a professional business plan. According to QuickBooks, the best business plans include the following sections
● Executive summary
● Detailed business description
● Competitive market analysis
● Organization and management details
● Strategies used for sales
● Startup funding requirements
● Financial projections
Most business people choose to hire professional help in developing their business plans. A seasoned business planning expert can save you months of work and deliver a final product that would most likely be impossible for you to come up with on your own.
Once you have a polished business plan ready to present to prospective lenders, you’ll need to have a presentation ready for the startup funding sources you approach. Again, many people lack the experience needed to present their business plan professionally and have to hire help.
Getting Startup Funding from Alternate Lenders
Unsecured Business Loans offers unique startup funding options for those needing between $50K and $200K. We maintain partnerships with high-quality funding sources that do not require income verification, tax returns, or many of the other requirements common with most other funding sources. If you are free of liens, have no debts in collection, and have FICO score of at least 700, call us today to discuss how we can get you the startup funding you are seeking.
Business News Daily - Startup Financing Challenges and How to Overcome Them
Entrepreneur - The 10 Most Reliable Ways to Fund a Startup
QuickBooks - 7 Elements Of A Business Plan