5 Most Realistic Ways to Fund Your Startup

Every great business idea must be put into action before it generates any income. However, if you have no capital, it will be impossible to build your enterprise. There is no free lunch, and you must spend for manpower, equipment, packaging, internet service and communication means. No matter which industry you want to penetrate, it will be difficult if you do not have enough cash to spark it up. Here are five realistic ways to fund your startup. Closest Circle You can ask your family and circle of friends to lend you a hand. One advantage is you can negotiate more openly depending on how close you are to them. If you are lucky, you can even borrow without interest charge. However, if they are giving you a flexible loan from money lender Singapore in a legal way, you must draft a contract to avoid future dispute. Small Business Loan If you want to get a small business loan, you have to shop around for a money lender Singapore. Banks do not give small business loans that easily if you are a startup and can’t afford to have collateral unlike money lender Singapore. Add to that, banks take their sweet time when processing business loans for startups from money lender Singapore. Bootstrapping Got savings? Fund your own startup and start small for a while. Make do with what you have for now. There will be no interest charge and you are free to plan your finances without worries on any payments or bills in case you experience any downfall. Crowdfunding If you think that your business idea is catchy enough, then you can take it to crowdfunding platforms. There are various crowdfunding sites. Some cater to artists while others focus on businesses with innovative products. However, be careful not to over promise anything to your investors. You might frustrate them if you are unable to deliver your promise. Also, take the time to read the guidelines or regulations. Keep Your Day Job Successful entrepreneurs who profess that they just took a leap of fate may be inspiring, but doing it yourself is…

5 Must-Know Types of Investors for Your Startups

Investors are important players in any industry. They help businesses start, grow and thrive. The budding entrepreneurs need to know which type of investor they need to look for and the best practice to approach them. Banks One way banks make money is by investing in various businesses. They are, after all, the classic place to get a business loan. However, banks have been more risk-averse and tend to lean more on businesses that can guarantee returns. Banks lend to startups, but the process is too taxing and too long. To get approved, you need a collateral or proof of revenue stream. Venture capitalists You can capture the interest of venture capitalists only if your business is able to show a significant amount of revenue. Since this type of investors put in a significant amount of money, they expect to gain returns from the profits of a hedge fund or private equity. Personal investors Certain business owners also rely on their family. Even Donald Trump got a loan from his own father to build up his business. But most family and friends can invest only a certain amount. Do not forget to document every cent and the agreed conditions. Angel investors Angel investors invest in startups only if they are convinced that they can gain from it. They may ask questions on how you will handle your business operations as they would want to give tips on how to steer it into success. Remember that most angel investors are entrepreneurs themselves. To approach them, you may want to find a person who can recommend your business to angel investors. This person may be found in your community groups. Private Lenders There are private lenders who are also willing to help startups plant their roots. Some offer secured loans while others have unsecured. The process is faster than the business loans in banks. However, make sure to understand the loan contract and choose a reputable lender to avoid fraud.