Funding a startup is not an easy task. You need money to run your business, buy equipment, and produce your products or render services. Even if you are able to start up your company, you will eventually need more money to sustain your business during the peak season or expand when the right chance comes. There are various ways to get the money you need.
It used to be only for artists. Fans support the artist so they send money for them to produce their albums or artworks. Now there are a handful of online platforms who do the same thing. Kickstarted and Indiegogo are two of the most known sites for startup small companies who have fantastic and unique business ideas but lack finances. Take note that each platform has its own rules and regulations. Some do not give the business owners their pledged funds if they are unable to complete their goals at a given time. Others still give the funds no matter how much the investors pledge.
Go cowboy and do everything by spending your own savings. The good thing is you do not have to prove yourself to any investors. You also get to keep 100% of your business’ value. Add to that, you may know someone close who is willing to lend you some cash and support you for a while. You can even start your business at home for a start.
If you have connections in your local community or know certain business owners, you can get referred to an angel investor. An angel investor usually helps small businesses who have potential to grow amidst the competition. They stay with the small business until they get to exit or sell their shares. An angel investor can invest alone or as a group to divide the risk an investment can have.