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How to Fund a Startup: Realistic Ways to Get Started
Everybody has ideas, but great ideas only come up in the minds of very few people, and only the bravest ones dare to make it real if you have asked yourself how to fund a startup, then congratulations because you are becoming one of the braves ones.
If you think that the first thing you need to fund a startup is money, you are mistaken. But it’s okay, money is still a huge part of this process, and we will explain to you the fundamentals in the following lines.
Make a Solid Business Plan
We understand your first concern can be the money, but it should be your business plan. Having this document ready before looking for funding is extremely important for you and your investors. A business plan can help you see the present and the future of your startup. It basically covers every objective, strategy, marketing, and sales forecasts.
For example, if you plan to be one of the brand new casino sites, explain why that kind of business is profitable and how you plan to carry on with your idea.
Having a solid business plan guarantees that you have a goal instead of a dream and that it’s an achievable goal with specific timings and potential problems. Write all that down so you can measure your progress.
Talk It Over with Friends and Family
Not only to know what they think about it, but to identify possible flaws you hadn’t considered before, and most importantly: to convince your first investors. Your friends and family probably have never wondered how to fund a startup, but they know you and capabilities, so use that in your favor.
We know borrowing money from friends and family can be unpleasant, but it’s easier than asking for money from a bank, and it’s also a way to help them make more money once the startup is working.
The ones that are closer to you will believe in your project faster than anyone else, talk that advantage and seek their support. Discuss interests’ rates that are functional for both parts, and stick to your business plan to avoid future monetary issues that could slow down paying that loan to your loved ones.
Small Business Loans
You probably knew you would need a lot of money, but not how many people you would have to talk to before actually getting it.
You need to ask for money from your friends and family to have some cash to begin with, but unless you get a 6 digit check from your family, you will inevitably have to ask for a small business loan in a bank.
Fortunately for you, banks are more and more open to deal with startup projects. Our economy deeply needs more startups everywhere, so getting a loan will not be such a difficult task. Please keep in mind that banks will look at your business plan thoroughly. And the more prepared that document is, the better the chances of getting the loan.
If by any chance, the bank rejects the project, you can always find online support. Many crowdfunding websites are trustable and have great rates, so consider making crowdfunding to convince others of investing in your idea.
Remember that this is your chance to convince someone who doesn’t know you that your idea is amazing. So amazing, they would be a fool not to help you. Think carefully about how you describe your idea. It is not the same selling it to a bank as selling it to the general public. Be open-hearted, enthusiastic, and honest.
For example, if your idea is becoming one of the best us online casino, explain in your crowdfunding, how do you plan to develop that business and how it can benefit you and others.
Try a Business Accelerator Program
Banks are not the only ones supporting startups. Many universities and companies have business accelerator programs that offer mentorship, investors, and monetary support for newborn startups.
These plans only help you to develop your business, to make stable and self-sufficient enough so you can spread your wings on your own. Will they do this for free? Most won’t. Remember, bigger founders need to recover their investments and probably will want to double it.
And the way they do so is by making a startup successful enough to get some profits.
How to Fund a Startup: Final Thoughts
Asking yourself how to fund a startup is the first step to make a great idea a reality.
Despite having so many possibilities to gain funds, this is not going to be an easy road. The best advice we can give you, business landing a solid business plan, is to be optimistic and believe in the project no matter what happens.
Although, if you present your startup project to different people and you negative or constructive feedback, don’t discard it only because it threatens the vision of your project. Be humble; listen to your friend, families, and other investors. Learn from them. And make the necessary changes to make your startup rise above the clouds like you always dreamed of.