One of the banes of small businesses and startup alike is the relatively limited avenues for sourcing funds and investment needed to precipitate growth and expansion. And although there are quite a number of loan facilities specifically engineered for small business the competition for these has increased tremendously over the last few decades consequent of the precipitous rise in the number of business start-up.
Expansion is key to the sustenance of any business as it ensures a steady supply of new customers and a fresh market base to test new business strategies. However very few startups have the ability to facilitate such expansion as at when due; in a business world where delay is not only dangerous but potentially fatal, entrepreneurs must make provisions for alternative sources of investment and venture capital needed to potentiate the process of growth and expansion.
This article seeks to enumerate five potentially viable and low-risk sources for the much-coveted investment funds that assure a furtherance of development and business progression.
Family and friends
Perhaps the most direct and arguably easiest way to source for capital to boost your business is by soliciting help from family and friends. It is the first option you should be looking to explore to bolster your capital; certain investment firms even take into consideration how much help you have been able to garner from your family and friends before the commit any investment to your business. The reason is, they assume that if no family or friend is willing to bear the risk of investing in your business, it means your idea isn’t viable enough.
Initiate a Crowd Funding campaign
If you are confident of your business model and convinced that it has the potential to penetrate the market and yield dividends, then one the one-stop shop for your funding needs are crowd funding sites. Just ask Palmer Lucky creator of the Oculus Rift, equipped with only an ingenious idea and no prior funding whatsoever he was able to convince quite a large number of people that his idea was concrete. With the funding, he accrued from the crowd funding website (in this case Kickstarter) he was able to develop what is now as the oculus rift; a market leader in the field of virtual reality.
Seek the help of Local Angel Investors
Characteristic of most urbanite societies is the presence of elite high- net- worth personalities who display obvious interest in funding start-ups and small businesses. See: http://www.InvestorsCalifornia.com Companies like Costco and Google enlisted the assistance of angel investors at one point or the other on their path to market domination. The key to enlisting the help of such individuals or groups is to have a convincing and performing business model. Several online platforms like USA angel investors afford users the opportunity to track these sort of investors. See: http://www.USAangelinvestors.com
Apply for a grant
Most governments (the US government in particular) encourage ingenuity, creativity and entrepreneurship among its populace. And it is in this line that they make provisions for funds to be allocated to startups and small business that show promising potential in the form of grants. Although the process of applying and processing the grant application might be a little cumbersome and stretched out, it is certainly worth the try as it carries no risk. The web portal grants.gov hosts a repertoire of available grants offered by the US government.
Approach professional Venture capital investors
Several firms and companies such as Investors Funding USA exist who specialise in investing in viable and sustainable business models. These companies usually target start-ups that have an excellent track record and promising prospects. They have the capability of investing lump sums into a business they deem qualified, so if it’s a massive capital boost you seek, and you have a working business model then, by all means, approach one of these companies of as they are many lying around. See: http://www.InvestorsFundingUSA.com