Starting a business requires, grit, determination, and cash. No matter how amazing your idea is, unless you have sufficient funds in place, it will be hard to make your ideas into a reality. It’s a tough old world for entrepreneurs. A staggering 90% of all start-ups fail within the first year. Of the 10% that do make it past the first anniversary, around 50% will fail within five years. These statistics are harsh, but with sound business practices and enough capital, you have every chance of growing a successful venture.
Start-up capital is essential for budding entrepreneurs. Without funds to help you get your business off the ground, you will struggle. Unfortunately, it’s not always easy to secure funding from traditional lenders, as the majority of banks now operate risk-averse lending policies. The good news is that technology can help you fund your business in a myriad of different ways, so let’s explore your options.
Use Technology To Find Financial Backers
Whilst a bank loan is a common way to fund a start-up, it’s not the only way. There are many investors out there who look for new start-ups to invest their money. Some will be after a share of the profits; others will only invest in return for a share of the business. The important thing here is that technology can help you find these people.
Join online networks that connect start-ups with funding partners and become active on business forums. The more contacts you make in the early stages of your start-up, the more likely you are to meet people who can help you – people like business angels, who provide start-up capital and act as a mentor.
Anyone with an idea can harness the power of crowdfunding to secure capital. It’s a modern phenomenon that wouldn’t be in existence without the internet. The beauty of it is that anyone can pitch for funding on a crowdfunding website. There are different types of crowdfunding, but the three main types are rewards based, donation based, and equity funding.
Sites like Kickstarter and Indiegogo let you pitch your ideas to the public. It’s a great way to see if your ideas are actually viable. If you get no interest, then it’s a sign you need to go back to the drawing board.
Don’t underestimate the power of social media. With a smart pitch on social media, you can attract publicity and funding.
The financial markets offer much better returns than any savings account. With the right skill, you can turn a small savings pot into a decent amount of start-up capital. Online trading is not for everyone, but it is an alternative way to raise funds to start a business. Open a demo account with one of the main online trading platforms. Once you understand how the system works, start trading for real. There are many different markets, from Forex to stocks and shares. It’s not an easy way to make money, but if you understand how the markets work and you can read financial data, you can make your capital work that bit harder.
Digital currencies are a game changer. In a matter of years, bitcoin has become a legitimate way to buy goods. Tech-savvy entrepreneurs can use bitcoin to their advantage. Use bitcoin mining software to start mining for bitcoin. When you have enough bitcoin, exchange them for real currency, which can be used to fund your start-up.
It’s never easy starting a business, but technology can give you the extra boost you need to hit the ground running.