Dreaming of raising significant amount of business financing? You are not the only one.
All startups dream of the day their startup business financing strategies work and they pitch successfully to a huge investor. They forget, though, that with investors comes with additional responsibilities (some call these headaches) such as too much paperwork, shift of focus from business to investors, and negotiation on the company’s value. This is the reason why experts suggest that you check out other options of raising money for small business before pitching to investors. We have a few of them enlisted here:
Kick Start With Kickstarter
If your company is building a product, you must make your presence felt on Kickstarter. This platform is a blessing for anyone making physical products because it doesn’t just help with startup business financing but also provide validation. This site will help you identify whether your customers will pay for your product. Also, you will have plenty of customers who will try your new product as soon as you launch it. Lastly, since it is so popular, it is a great way of marketing. If your product manages to fascinate someone, he/she will talk about it to friends and family!
Look For Strategic Partnerships
There are many other startups out there who are hard pressed for funding. You can form strategic partnerships with them and benefit. You can walk in to fill their requirements or weaknesses and vice versa. You will save money in this process and your work will be done alongside. Remember to only partner with firms that connect with your firm. Otherwise you won’t be able to grow.
Start Selling Before You Are Ready
This can be quite tricky but it has worked for many startups. Selling before you are ready requires you to convince your early customers to pay upfront. Tell them what your product is about and when they can expect it delivered. With the money they pay you, work on the product. Be very careful here about the delivery date and the product quality. The customer will not be lenient in either case because he trusted you with his money.
These startup business financing options have helped many startups take off and grow as well. They may help you too!
Finding investors is not the only way of raising money for a small business. You can try Kickstarter, strategic partnerships, and selling early in order to raise funds. These options are helpful because they save time and provide validation for the product you are working on at the same time.