How to Raise Funds and Attract Investors

Getting your startup off the ground in today’s dog-eat-dog commercial landscape requires you to think out of the box and exploit your creativity optimally in order to garner the funds-lifeblood for your business. Not only will you have to tap as many sources as possible but also hardsell yourself which means preparing highly organized business project, and the ability to convince potential investors about the viability of your startup. Following are some of the tried and tested ways of attracting funds for your venture.

  1. Bootstrapping/DIY

Taking this route would be your best bet for jumpstarting your business. By bootstrapping you’ll at least be able to get started and keep the business going for such time till you win the trust of institutional investors and venture capitalists as they’ll be in a position to lend larger lump-sums. For self-starting you can use up your savings, keeping working at your job, solicit money from parents, and go for some credit cards with zero interest rates.

  1. Near & Dear Ones

Borrowing from your relatives, friends, office colleagues, and your parents has always been a sound means of pooling funds. And this method has also been tapped to the hilt by a majority of eager entrepreneurs. Your family, friends, and relatives are always the most reliable group of people who’re most likely to believe in the potentiality of your venture. However, the biggest flipside of borrowing via this route is that you’ll be at risk of assassinating relationships that you treasure the most in case you fail to repay.

  1. Debt Financing

If you care to explore a little diligently, there are lenient investors and small companies that are willing to fund smalltime businesses in return for a mutually agreed interest rate.

  1. Equity Financing

Equity financing can go a long way in helping you to inject generous doses of capital in your startup but it comes at a huge cost. You should be mentally prepared to offer a stake in your business, and the larger the equity provided, the higher the stake.

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