3 Tips for Funding New Startups
Finding the funds to set up new startups is never easy, whether you’re in a booming economy or a recession. As a result, it is essential that you investigate your markets and sectors before funding new startups. For example, what are your setup costs going to be? Will your customer acquisition costs be high? What will your overheads look like? You’re also probably going to need to spend a ton on marketing in the early stages of startups – your funding has got to take a lot of things into consideration.
Nonetheless, here we’ve provided you with 3 simple tips for funding new startups and making the entire process a little easier to comprehend.
1. Business plans are essential
If you’re not the kind of person who’s into planning things, you’re going to have to change that habit very quickly. Most successful endeavors in life are carefully planned, but when you’re seeking large amounts of funding for startups, you better make sure that your business plans are in order! If you cannot demonstrate a well-thought-out and realistic business plan which values your business and projects growth realistically, then why should anyone invest in you? A badly written (or non-existent) business plan will see you hurt your credibility and your chances of acquiring funding. An idea for a business is not in itself a business plan.
2. Have a decent credit score
Good credit scores aren’t just great for personal loans and finance – they can also make startups and entrepreneurs more attractive to potential investors. Why? Because a good credit score indicates that you’re sensible with your money in both your personal life and your professional life. If there’s one thing that investors want to see when they’re funding your startups, it’s sensible behavior with money. It doesn’t matter if your business plans are the best in the world – if you have a poor credit score, investors will naturally be hesitant about giving you their money and you’ll be treated as a high-risk investment.
3. Get networking!
Business networking has been going on since the dawn of… business! The more you involve yourself with successful and ambitious businesspeople, the more likely you are to find yourself in the right circles and attract the interest of investors within your chosen field. Also, in the modern era, networking isn’t just about face-to-face events and conferences – startups looking for funding can now do a large amount of networking online. Using social media channels and crowdfunding platforms such as GoFundMe and Kickstarter, you can now acquire funding from investors who are all over the world. Many startups get their initial funds by marketing themselves on crowdfunding sites these days, and it makes sense to take advantage of this unique technology.
Funding Authority – experts in funding startups
Here at Funding Authority, we have been funding startups and helping them with their business plans for over 30 years, adapting to ever-changing business models and market conditions. To date, we have assisted in raising more than $1 billion in funding for a wide range of companies.
For more information and help in funding your startup, why not get in touch with a member of our dedicated team today?