Business Funding During COVID-19
It’s important to remember that established entrepreneurs often have vast networks and access to investor connections to help them raise money and hit the ground running. This is how most start their business with minimal funding. But, this begs the question: what if you are a first timer or if you don’t have that pre-established network?
Let’s explore four lesser known ways to raise money for your startup.
If your business is already centered around a service, that’s great news. Set out to find some customers to raise funds. By requiring a certain amount up front from customers (prior to performing the service) you will increase funds for your business, and the more quickly you are able to complete the job the sooner you will have the rest of the capital.If your business is product based, find a way to add in a service so you can fund your products. The key to this is approaching the right customer, a customer with a large pain point that you can solve, in your industry. This way, you are growing your business and also receiving funds while you work toward the final product.
Loans can be a simple option for those of you with a strong business plan and the statistics and projections to back it up. Banks are the most common source of loans, although you can often find a variety of grants and business loans through other resources as well. The one thing they all have in common is that if you want the loan, you have to prove your business is worthy and has a high likelihood of succeeding so you can pay back the money over time. Meticulous planning and a strong, honest presentation of your business projections will be needed if you select this method for funds.
If you can establish a strong brand for your startup prior to launch and create a storyline that feels personal to customers and solves a pain point for them, a crowdfunding campaign could show significant results for you.There are a variety of sites that now offer the chance to raise funds via crowdfunding; some focus on specific industries and characteristics, while others are open to anyone. The key is to set reasonable goals at this moment. It is also key to remember that a pandemic is taking place, meaning many businesses have even gone bankrupt due to poor decision making. Work around these facts and maintain focus. Do not be blinded by overexaggerated targets, chances of a really daring goal succeeding right now are zero-to-none, so be smart and logical.