Seeking Capital to Grow your Business

Seeking Capital to Grow your Business

The money that you can invest in a business freely for a stipulated return, is termed as the capital amount.  The operations and logistics of your business will depend on this amount whether you are looking to run a small time or a big-time business. You will have to invest in aspects like sales and marketing, business development, service enablement and so on.

This blog is about some sources that can help you seek capital in ways that are less known. Although some of these are not traditional, it still will serve the purpose of securing funds for the start-up. Read on to know more.

Crowd Funding

Crowd Funding
This is one of the most common ways to rope in people who would want to fund your online business ideas. There are two models in crowdfunding. One is the traditional one, where people gather to donate for a common cause without expecting much; The second, being raising capital in return for trading equity or debt in the long run.

Although these two models exist, the latter one is chosen quite often. The latter one has a framework on which the financial markets would operate to fund a business idea.

They usually have intermediaries such as VCs, investors who connect investment banks to those Entrepreneurs seeking an investment. The former one is used just in case you are trying to run a small-time business for charity causes.

AngelList, Invested.in, RocketHub, CrowdFunder, Kickstarter are some of the fundraising websites you can get started with.

Bank Loans

Bank Loans
This may sound a bit odd when it comes to investing in a small-time business plan, but this authentic act might just earn you a lot of trust from potential investors. If you are looking to start a small time business plan, and the fund required is not a lot, then seeking a bank loan may not be a bad idea.

Bank loans, however, seek some sort of assets or collaterals and may also check for the right kind of credit profile you have maintained. Having a good business plan drafted out will help you find the right kind of credit score at the time of seeking a loan from the bank.

This process may also attract a few real-time investors who would believe in your vision of building something.

 Consult with your network

 Consult with your network
These are people who have known you for a long time. They might be your friends, family, classmates, someone who has worked with you before on specific projects or maybe your colleague at the workplace.

Explore the idea that you have about your small time business to find out if they are actually interested in the idea and are ready to pool in money or partner with you to run a part of it.

The only problem with this is that you will be putting relationships at stake. Therefore, to avoid any kind of uncertainty and to stay away from bad experiences, you may have to put all options, clauses, concerns and every aspect of business conduct on paper and get it officially recognized.

Government Schemes

Government Schemes
There are two aspects of it; one, business offers and policies from your state government. Two, central policies on the same. Seek the opportunities the government has open for individuals who would want to run small businesses. You will be surprised at the opportunities that are open out there.

This source is one rare stuff, but very powerful when it comes to claiming tax returns, discounts, wavering, easy loans, and so on. You should definitely try and explore this option. Your citizenship and loyalty to your country may have more to offer to you just a social security deposit or aadhar card.

Small Time Sharks

Small Time Sharks
There are many commercial brokers who charge a bit higher interest rates but would lend you any kind of money whenever required. Get in touch with someone who can refer you to such small-time sharks. There are instances when they have agreed to lend the money on a short term basis or even agreed for a partnership.

I mean who wouldn’t like to make money when they are sleeping with zero effort, right? Offer them this partnership pitch for a couple of years before carding them out.

Conclusion

Small time businesses are often the most profitable ways to make legal money. They are perfect in the sense that they have the ability to attract all kinds of people especially folks from the middle class and the creamy layer of the economic band with these there are umpteen number of opportunities that could be stunted due to the inability to not find the resources at the right time, especially money.

Using these pointers and resources anyone who is interested to invest in business can find and raise funds and make their dreams come true. Like they say, “If you can dream it, you can do it!”

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