Easy Ways to Raise Capital For Your Business — Shaun Stenning
You have an idea, and you want to build it into a company. The first thing you need in order to get your company off the ground is capital.
Five years ago, if you wanted to start a company, you had to go to a venture capitalist to find funding. Today, there are so many other options — from angel investors to crowdfunding — for your company.
According to Shaun Stenning, “A lot of entrepreneurs ask me when they should start looking for investors and my advice is to start very early. Get out there before you need money.”
“Basically, start looking at the time you’re starting your business, and get to know people. Go to industry conferences, go to investor meetings, introduce yourself, and ask people for advice. Tell them you’re working on something exciting. Don’t mention that you’re looking for money so that when you come back later, it’s now a warm introduction rather than a cold call, and that’s very important.” Shaun Stenning said.
While money doesn’t grow on trees, there are a number of ways you can seek funding for your business — some more traditional than others.
Here are six ways you can raise the money you need for your business.
1. Bootstrap your business
Provided that your business isn’t operating in an industry that requires lots of startup capital, like manufacturing or transportation, you can potentially fund your own venture — and it may be more feasible than you think.
2. Launch a crowdfunding campaign
There are many crowdfunding success stories out there. And with the right product and pitch, you can be one of them.
3. Apply for a loan
Even as technology creates new ways of raising capital, traditional financing products remain the primary way small businesses fund their operations.
4. Raise capital by asking friends and family
Raising capital through friends and family is a viable option for many. Shaun Stenning said.
5. Find an angel investor
By definition, angel investors are accredited individuals with a net worth exceeding $1 million or an annual income of more than $200,000. They typically operate alone but may team up with other angel investors and form a fund.
The key lesson here is that you have many options for financing your business. Don’t get discouraged if one doesn’t work out. By demonstrating due diligence and being resourceful and persistent, you can raise the capital you need.
Then, the money will no longer hold back your business. You’ll be free to expand.