You want to own a chain of liquor stores and make it a business empire. You want to dine in the same table with the world’s most renowned billionaires. Nice and valid dream! Nevertheless, one stumbling block stands on your way to success; you are not sure of the best funding options for your business!
Today, there are all manners of financial institutions which claim to offer to fund for startups and SMEs. However, there are businesses out there who give testimonials of how they have trusted these institutions, only to be conned of their hard-earned money, not forgetting that some of them have even lost businesses that they have worked hard to establish. This leaves us with the question: what are the best funding options to raise capital for your business? Well, to find out the ultimate answer to this question, sit back and keep reading!
Grants give people free money. You heard it right –free money! Interesting huh?
However, before you jump with excitement and start walking in and out of your country looking for grants, you need to know that everybody is looking for them; thus you will need to deal with stiff competition. Also, you need to know that millions of people apply for them, but only a handful get them.
To get grants, you have to put in a lot of work. You have to participate in endless interviews, make videos, write essays and engage in a detailed application process. Nonetheless, if you do everything right and convince the granters that you have the best business idea, then getting grants is one of the best funding options for your business.
If you applied for grants, but nothing came your way even after lots of sweating, don’t worry. Try crowdfunding. Here, the money you will get is not free. However, you will not go to the lenders; they will come to you.
For lenders to come to your business, you will need to make a detailed and convincing pitch about your product and post it in a credible and reputable crowdfunding site. However, people will have to see what you are doing so that they can give you money. Simply put, they will give money to get rewards such as t-shirts or maybe a dinner at a holiday getaway.
Don’t forget that there are those who give crowdfunding for equity. Therefore, be careful before you proceed with your pitch.
Well, you have probably watched TV programs such as Shark Tank, have you? This show is a good example of angel investment. What you have to do is find someone to invest in your business, and in exchange, you give him/her a certain percentage of shares in your company.
The main benefit of getting an angel investor is because you will not need to pay back the money, and apart from the investment the angel investor makes in your business, he will also provide hands-off mentorship and can go a long way in taking your small business or startup to a whole new level.
Well, this sounds weird – you need to get funding for your business, but self-funding is an option? How is this even possible?
Look, you probably have a savings account and/or a retirement account, right? Well, instead of immersing yourself in a sea of debts, why don’t you use these accounts to self-fund your business?
After you fund your business, you might be out of cash, but see – you will owe no one money. Additionally, you will be saving a lot of time and resources that you would otherwise have used to find other funding options.
If you don’t have any of these accounts, or they have run dry due to other investments, you can turn to your assets. For example, if you have three cars and you only use one, sell two and fund your business. This is how you make your liquor business a success!