As an astute business mind you may come up with a perspicacious idea
to promulgate your existing business or start an altogether new
business venture. Well! flourishing the existing one may not seem to
be that challenging as it is when you are to start a new venture. The
success of your business plan considerably depends on : To what
extent your idea or business plan is insightful. That means it has to
be viable and clear and should have the capacity to pique the
interest of the investors so that your idea does not go to dirt
because of the scarcity of capital or resources. To discuss a little
about your business idea:
- It should be insightful and viable for influencing and making the investors to not only think but invest on it.
- Your business plan must dictate every step from starting to earning profit very clearly.
- There must be sufficient space for explaining your plans to pay the borrowings back to the lenders or investors.
- The strategy you are going to pursue in order to achieve your set goals has to be clearly explained.
- The audience you are going to target and the competitors you are going to compete with must also be clearly understandable form your business plan chart.
- Moreover the objectives of the venture you are planning to set up, should be showcased via your business plan.
In this way the more powerful and effective your business plan will
be the more it will attract in terms of investment required to be
invested in order to shape your business idea into a real business
venture.
In case scarcity of financial resources is compelling you to put your
great business plan or idea on hold, you may opt for any of the
following options:
Your Own Funds
Market experts consider it the most
convenient financing option as you are the one who understands
your new venture and existing status the best. Thus, choosing the
financing options
also relies on you. You can use your savings for the fund. In other
case, you can even sell or take credit on
your personal assets,
such as: mutual fund, property, etc.
Banks
Banks usually
provide the financial support to the small businesses. However, no
one
in the market stands to bear
loss and that is why banks are likely to play safe. They prefer to
rely on your business history and expected future. Support from the
banks can only be attained by proving that you are able to replay.
Leasing:
Leasing is
also an easily available and feasible means of financing your new
venture. Needs of
computer, office tools, phone system, building, etc. can be availed
on lease to reduce the startup cost. However,
on a later stage when your
business flourishes, you can always
think of owning
them.
Business Credit Cards
These can be considered as one
of the most readily available means
to finance your start up and get
it running. It is very beneficial and less
burdensome, because the minimum payment amount is very less on credit
cards. These may work as saviors, in case a lot of money is not
coming in via your newly started up business venture and you are able
to pay back a very little amount every month.
However, the other side of using credit cards may not be that
lucrative, since in case of inability to pay the interest rates and
cost get on building up and up. The other drawback is - it is always
on your head untill and unless you do not pay the whole amount back.
Angel Investors
Angels are considered as the paragons of virtue. Angel investors are
usually those investors who possess an abundant amount of money and
are willing to invest it on the business for making it run rather
making profit out of it. Retired entrepreneur or the family members
of a business tycoon who possess enormous capital can also be such
angel investors. Such kind of investors may look for twenty to twenty
five percent returns on their investment and can prove very
beneficial for your business as they usually possess great experience
in business. Big companies like Google as well was supported by such
angel investors in its starting up time.
Venture Capitalists
Unlike Angel Investors, Venture Capitalists are considered to be
profit oriented and they usually invest in a business which they find
to be already in profit and possess higher rate of return on
investment(ROI). In simpler words Venture Capitalists are profit
oriented and they can be lured only if you can promise for great
returns in a short span of time.
These kind of investors are generally limited to certain kind of
businesses so they possess great knowledge in forecasting about the
possible success of your product in the market. Hence, they can
assist you when it comes about strategic management of your business.
Winning a Contest
Your luck can also play a vital role in case you try it out for
winning a contest and earning via winning it to finance your new
business venture.
There are different kinds of business plan competitions in the market
now a days, that offer a handsome amount as the winning prize. This
kind of cash prize can really help you with your business plan or
idea and scale your product. You also get a chance to meet great
business minds during the competition that means you get certain
great ideas from them apart from the handsome cash prize.
Crowdfunding
Crowdfunding is an online way to gaining attention for your
project, ideas, product, cause, experience, etc. Every
individual on the crowdfunding platform acts as an individual
investor who invests on the basis of his own choice and liking. This
practice helps you raise the fund from other users available on the
crowdfunding platform to support the project. So, in a brief
description one can call it a collaboration of three parties; one who
presents the idea/project, the supporters (or crowd), and the
crowdfunding platform (or an intermediate link between crowd and
presenter).
Presales
of Your Product
Presale of your product is a really effective way to accumulate the
amount of money required to use as seed money for any business plan.
The task of presale starts right from contacting a customer and ends
up at his acquisition as your customer, in simpler words at the sale
of the product. The biggest challenge in this direction is to define
the delivery time and forecast the exact number to be presold.
To encapsulate, there are end number of ways, means or methods via
which you can raise the funds and arrange the seed money required to
start a new business venture. Above all the end result depends on the
strength of your idea and the strategies opted for shaping that idea
into a business set up.
