In a climate where, despite recent economic improvements, banks are still wary about handing out loans to potentially risky propositions, many businesses are on the hunt for alternative ways to gain the finance they need. Indeed, a pioneering business is unlikely to gain finance using traditional options.
If you’re trying to set a trend, then you might have to break the boundaries on how you raise finances, too. Whether it’s construction finance or an IT venture, alternative funding is looking increasingly tempting as banks close their doors to new business.
But, what avenues are open to those businesses that banks have no interest in, and how can you get potential investors to listen?
Crowdfund your way to success
The new kid on the block, crowdfunding has taken the internet by storm in the past few years. Essentially, a business posts its aspirations on a crowdfunding website, allowing people to donate cash if they find it to be worthy of investment.
Although it’s mainly used for creative enterprises like film, game and music production, the crowdfunding venture has been bleeding into more ordinary business ventures, with equity crowdfunding giving companies the chance to dole out equity in return for cash.
Find a partner who’ll keep quiet
Almost everyone knows the feeling, business or no business – you’ve got a great plan for something and you’re doing perfectly well on your own, until somebody else comes along and interferes. It’s a situation that’s always happening in the world of finance – the enterprising individual is stymied by the guy trying to balance the books. While that’s reasonable in certain circumstances, in many others it can strangle a business before it even gets out of the starting gate.
If you need finance but want to remain in control of your business, find a silent partner who’ll pony up the cash but stay out of your affairs, fully trusting that you can give them the profit they desire.
Make your business plan bulletproof
The first hurdle that most businesses face when searching for finance is that they don’t have a clear enough vision of what they want their enterprise to achieve. Within their pie in the sky dreams they fail to grasp an anchor that will bring their plans down to earth and be able to stand up to the cold, calculated processes of a business ledger.
So, take your plan and boil it down to its most sensible components before working in any flights of fancy. That way you’ll find gaining cash to be a far easier prospect.
Get the government on your side
If you have the right type of business, the government could be more than willing to throw a bit of dough your way. With grants for fledgling businesses or the type of enterprise that might boost the economy, the government will be more than willing to help the business whose future could be bright with a little bit of investment.
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