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Thanks to the technological boom and changed attitude of people, startups have turned into one of the most growing industries in the world. According to the statistics, 2019 saw around 30.7 million small businesses only in the U.S. So, the future of startups seems very promising!
The advent of the internet has not only opened up many opportunities for people to kick start a new business, but people are also taking courage to say goodbye to their 9 to 5 grind. That’s great! However, these statistics might be deceptive to make you think that beginning a new business is an easy affair. It not only takes a lot of strong ideas and robust planning to capture the saturated market, but startups also need reliable funding to manage financial needs in the beginning.
Let’s admit that no matter how unique your business idea is and how much effort you are exerting to turn it into a successful venture, you can’t hit success immediately. While you are struggling to maintain and grow your business, you need financial aid to keep things going. So, you need to make the most appropriate decision for funding for your specific business needs for the best results.
Here are some funding methods going strong in 2020 that may help you find the best pick:
Love Funding from Family and Friends:
People always try to seek out flexible loan options to ensure security as well as freedom. And nothing can be more flexible than a family or a friend. Look around in your family and friend’s circle and see if someone is wealthy enough to support your startup financially. A love funding from your family member, friend, or any other acquaintance is the best option if you don’t want to feel restricted and burdened in the form of a substantial interest rate.
Bank Loans:
Unless you belong to the lineage of a millionaire or your friends are from the elite section of the society, it is not possible to secure heavy investment from them. In this case, a traditional bank loan can help you. You can apply for a loan from a bank, but before applying for a bank loan, make sure that you are serious about the project and have reliable plans to repay the loan. The good thing is that some banks come up with special packages for startups, which can help you to find loans with less expensive interest rates.
Third-Party Funders:
Another option is to find a reliable investment company that is ready to provide funds and financial support to new ventures. Unlike banks, these third party investment companies, like Equify Financial, not only provide loans, but also offer financial advice and money management planning. With this you don’t burn the funded money aimlessly on not-so-important things. Remember that you will have limited funded money, so it is always better to utilize the money with careful planning to secure the finances for that period of time from startup until your business becomes self supporting.
Angel Investors:
Angel investor is a hugely popular term among the startup community as it refers to people who turn into angels for startups. Angel investors are not companies but people who have wealth and want to support a business in return for some shares and profit. But to find an angel investor for your company, you really need to have a solid idea, well-defined goals, and potential of success. No one will invest their money without a positive chance it will succeed.
These are some of the funding options that might be useful, if you are looking to startup a new business that has been a life-long dream of yours.
