5 Most Important Tips to Raise Funds for Business |
Posted: December 1, 2014 |
If you are falling short of funds to raise your business and not sure how would the banks react to it, it is always better to take care of few advices, before you make a decision to approach any of the money lenders. There are legal as well as illegal ways to raise funds for business. A Loan shark is one of the most common ways to raise funds. However, whatever you decide, it is always good to keep a few things handy. The below tips would help you to make a finance raising decision in your favor: 1. Become a shareholder: In case you wish to raise funds for your business which has just started, then it is advisable to go for equity funding, which means to become a shareholder of your company. This will surely help you to raise funds through the potential return, received being a shareholder. You would be entitled to a certain percentage of profit on the turnover of the business. 2. Focus on more investors: You need to ensure your business has more investors in order to raise the funds for your business. There are many ways to attract the investors. You would need to keep official meetings often, discuss about the company’s goals and future plans, ways to achieve them, arrange for campaigns, involve in online marketing of your business, etc.. Investors look forward to invest in businesses, which have a chance and an opportunity of growth in future. 3. Engaging more advisors: This is a common practice of making mistakes. Many people often start up their business on their own, without much of support or advice from their family, friends or relatives. Knowledge gets advanced with more sharing and discussing. It is always better to discuss about your business plans, future goals, opportunities involved, funds needed to discuss with your closed ones. Loved ones and well wishers will help you to know the flaws, demerits or the risks involved in the business, and share their knowledge in finding alternatives to prevent the same. 4. Find ways to involve partners: If you need to increase your funds and investments, involve more partners in your business. These partners could again be attracted through business campaigns. One of the best advices if your business sis at the startup stage, is to either take funds from a loan shark company or find a leading investor, who has a reputation in the market. This itself gives good publicity for your business and helps in grabbing the attention of more investors. This is very simple to understand, you would have noticed a good crowd in the malls, who have branded and reputed stores. The more a reputed brand invests in a mall, the more popular the mall becomes. 5. Plan a marketing strategy: In order to raise funds for your ongoing business, you need to be smart enough to raise funds through marketing campaigns, instead of banks. If it is a question of a minimal amount of loan that you need to borrow, then approaching a non licensed lender is a good option, as these companies do not follow a complicated process of lending. This would help you to raise money for your marketing strategies, in order to attract more investors.
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