There is more than one way to raise financial resources for companies and raise capital, and the first option starts with you.
If you are unwilling to invest in yourself, how can you expect someone else to?
Many successful entrepreneurs invest almost all of their savings in their small businesses, which helps attract investors’ attention because it is clear that you are fully committed to the project. But what if you have little capital to invest?
Most of the time, it’s best to wait until your product / service launches until you have something to offer.
Getting this first round of financing is usually the hardest and lenders want to see that you are serious. When it comes to raising capital and approaching lenders, make sure you have an investment value ready to go.
Here are some of the best ways on how to raise business finance, financing options and how to make the best choice.
How to raise financial resources for businesses
- Own credit
There is no getting around this one. It is our # 1 choice of how to raise financial resources for businesses.
Only in very rare cases can there be a startup with a founder investing $0 of his own money.
- Investment from family, friends or other business men
This is what many entrepreneurs avoid, but it is actually the absolute best option. Don’t worry about looking like you’re begging or putting your loved ones in an awkward position.
If you present your speech professionally and treat them as real investors (because they are), everything will be fine even if you are rejected.
You may be surprised that Matt Haycox, funding guru is very interested in supporting their dreams.
With this way of raising funds, you “free” of various bureaucracies of traditional financing. But the parties involved must be aware and secure of the entire process.