Johanes Ribli Gorilla Motivation:
We all know how tough having your own business can be. Innovative thinking and creative ideas can only get you so far.
Without proper capital, your business will eventually fall down. Small businesses are a big part of the Australian economy, with 99.8% of all these businesses belonging to either small or medium enterprises.
Looking for funds take a lot of time, which is why it’s best to choose your source of capital wisely. Here are seven ways to raise funds properly for your business to grow.
If you feel you have a very unique business idea, you can use crowdfunding as a source. It works on the power of the internet to raise enough funds.
There are many crowdfunding sites available like Pozible which are becoming more and more popular. Investors, entrepreneurs, and the general public consider crowdfunding as a great way of donating and receiving funds.
These sites are easy to manage and if you can properly sell your idea to the fundraising description, you’ll have the support of hundreds of people all over the world.
2. Purchase order financing
This method is ideal for businesses that have a large number of orders pouring in but not enough money to cover the production costs. In this case, the purchase order financing company pays the supplier for the proper production of the products.
After the product or service is sent to the customer and they pay the money to you, a part of this money is used to pay back the purchase order financing company. It’s probably not the easiest way to increase funds but is nevertheless popular.
3. Bank Loans
Almost every bank nowadays provides special loans to businesspeople. If you’re looking for loans at amazing rates, https://www.greatsouthernbank.com.au/ is your best option. You can create an Everyday Business Account, an account for communities like charities, or even for e-commerce platforms.
There will be useful tips and lessons from successful entrepreneurs that will guide you every step of the way. The Great Southern Bank is Australia’s largest customer-owned bank, and millions of entrepreneurs trust it for its premium services and great customer support.
4. Small Business Administration
Government programmes are very reliable options for raising funds. You can take help from Small Business Administrations (SBAs) but always remember that they are extremely competitive. The rates of interest are also slightly higher than most banks.
SBA lending is also a good idea of receiving money through the government’s help. The government will have various different schemes and plans for different kinds of businesses, so choose an area that suits you best.
5. Venture Capitals
Having a strategic business partner will help you raise money for your business pretty fast. These partners can also become an employee in the business. Venture Capitals (VCs) are special firms that can lend business capital to your company in the initial stages.
But they look for comparatively large-sized investments and often wish to have control over the company they lend money to. VCs invest against the equity and provide mentoring services.
If you’ve just started your business, you can use bootstrapping as an effective source of having funds. Often, first-time business owners are unable to pitch their ideas or get proper funding.
In these cases, you can extract a bit of money from your savings to kick-start the process. Many entrepreneurs even ask their friends or family to contribute a bit of money.
There are little to no formalities involved and the process is very simple. But remember to apply this type of funding only if you have enough money and if the capital needed initially is small.
7. Business incubators
Incubators and accelerator programmes can be found in almost every major city in the world. Incubators nurture the business by providing money and giving tips and tricks to the entrepreneur. They will provide your business with shelter tools and services too.
An accelerator helps your business to take a giant leap and take risks. These programmes last between 4-8 months and can be very helpful.
Over to you…
These seven most common ways to raise business funds can come in handy if you’re planning to start your own company. Look upon the internet and see which method suits your needs the best. Accordingly, approach the concerned authorities and get started!
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Johanes Ribli Gorilla Motivation