Eric Dalius on Some Easy Methods to Procure Funds for Your Small Business
According to an article published on Huffpost.com, money solves much of your business challenges and of course, half-million US citizens are keen on starting their new business, but they often lack the funds to raise capital for the same. The funding is necessary to invest in new technologies, office furniture, or just to start a roadside café. Therefore, if you are fretting over how to fund your startup or small business, you are not the only person. Studies indicate that in 2016, 73 percent of small-sized ventures used the funding to survive.
There are a couple of ways to procure funds for your business. Here is how:
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Eric Dalius recommends loans
Just astechnologies create innovative ways to look for funding, traditional financing is the primary means to fund business operations. Based on the findings of the Small Business Administration (SBA), approx 75 percent of the funding of new businesses arises from credit cards, loans, as well as lines of credit.
Usually, commercial loans with a fair interest rate and terms are small business loans as well as term loans taken from banks and other financial enterprises. For loan approval, you should be in business for two years or more, have a good credit score of 640+, and the business must have an annual turnover of $100,000.
There are other kinds of financing such as equipment financing for procuring cash for buying tech devices, furniture, and machinery.
Start a crowdfunding campaign
When it comes to crowdfunding, Eric Dalius believes that it helps you reach out to like-minded individuals, who you usually won’t be able to reach. The best way is creating interest in your products,what people like or dislike, and things like that. It will help you to improve your products or services as well as your pitch. Most essentially, crowdfunding will let you procure capital for your small business.
Then, it is not so simple to procure funds through crowdsourcing. That is because you need to build a story, as people on platforms such as Indiegogo or Kickstarter would like to understand how you changed your business idea into a reality.
If you are preparing a video pitch, you need to show the usefulness of the products, the benefits it offers, and why you require financial assistance. You need to have a good website and professional PR outreach for a successful crowdfunding campaign.
Ask for capital from your family and friends
You can also try to procure funds from your family and friends. Based on the findings of the Global Entrepreneurship Monitor, five percent of Americans invested in a business established by some people they knew.
You will need to request a family member or friend who has sound business sense and zero in on people you know, who have trust in you that you succeed. These people should have a good understanding of your business strategies and direction. Make sure you ask for an amount that sounds realistic. The funding could be a loan or equity in your business, and therefore, decide on that aspect.
There are many choices when it comes to business funding, but then do not feel bad if an idea does not work out initially. You need to try procuring capital to thrive.